When we see the game industry in the past and compare it with today’s game industry, we would see a big difference, especially in the creativity and the profit that it can produce. The past game industry only focuses on how to make a profit from the physical product selling. It was like a music industry, where their profit can be seen from how many copies of the product that they have successfully sold. However, today’s game industry doesn’t rely on that method anymore. The game developer even gives the game that they’ve created for free. But, this is where the profit came from.
The free game will eventually attract more people than the paid game product. This means gamer doesn’t need to pay to get the game that they are interested in. And if it turned out that the game isn’t interesting or they don’t like the game, they can just uninstall it. Unlike the old method where they have to pay for trying or know how the feeling to play that game the today’s method is more effective. We can say it as the investment of trust and interest. Once the investment bares the fruit, profit will come.
The profit of today’s game industry comes from the in-game purchasing feature. There are many strategies that game developer use in order to get profit from this feature. Some of them will try to offer a game without advertising, that the gamer can get by paying it for full game version. If the gamer doesn’t use this method, the game developer can still receive revenue from the ads that they place in the game.
The other developers use the in-game purchase feature. This feature allows the gamer to get extra feature, item, character or other addition by buying it with real money. By using this method, the game developer can get so much money, as the gamer, especially those who are playing the game seriously or on pro level, tend to try to play the game as perfect as they can. So spending few thousands US$ won’t be a matter for them. And, mostly, they do this in a routine period of time, such as weekly, monthly and even daily.
This new way to make a profit in the game industry is also the reason why many small game companies can survive in this industry. They have the exact method to make money to pay the production cost for the game product that they are created. In some case, they can even make more money than the big company.