Making a game is so much fun, especially if you love creating things like games and cartoon animations. However, as you have to live in society, you need to earn money to pay your rent and support your family. Therefore, a person making a game also wants to ensure they can provide for their family. Consequently, the first thing to consider is how you can earn money through the games you make. In this article I am going to explore the various ways you can earn money by making games, offering a comprehensive guide to monetization methods that cater to different types of games and audiences.
The Flourishing World of Game Development
As the population of the world is growing, the number of people who want to play games is increasing even more. Therefore, game development is no longer an unprofitable business where only some giants can earn money. After the entry of smartphones into the market, the gaming industry completely changed. Not only did it revolutionize the way games are played, but it also made earning through gaming much easier for developers, making it incredibly profitable.
Old-Fashioned Ways To Earn Money Through Gaming
Let’s talk about some of the most old-fashioned ways to earn money through gaming that was used in the early ’90s when we were just children and computer and digital gaming were as new as a toddler. Back then, traditional methods still played a significant role in the gaming industry.
Selling Your Game: Direct Sales and Digital Distribution
One of the most common ways to earn money in the early ’90s was by selling your game in the market. Back then, people bought CDs (Compact Discs), game cards, and chips to play games. Additionally, consoles were used to play these games by attaching them to televisions. The time and effort required to make a game and perfect it demanded a lot of resources. At the start, this was the only way to earn money from games, so only a few people were actually working in game development and selling their creations.
Physical Copies
As we talk about selling physical copies of games, is an old method; however, selling hard copies has evolved. Nowadays, we see very few game shops in town. Instead, larger marketplaces like Amazon, eBay, Alibaba, AliExpress, and Daraz have taken over this market. Additionally, bigger companies like Rockstar, Bandai Namco, and others release their games physically and place them on these marketplaces at higher prices. Consequently, people who are passionate about games and live streaming or gaming buy these games as soon as their hard copies are released. Despite the digital age, selling limited physical copies of games is still a good way to earn money.
Digital Distribution Platforms
Selling games in physical form is one of the old-fashioned ways but as we are growing in this world there is also a Better and more profitable way to sell games. Some of the best and greatest Digital marketplaces where any developer and company can sell their games so easily like Steam, GOG, EpicGames, and itch.io are the top contenders that rule the digital marketplace to sell games
Digital Markets place
Steam: Steam is one of the largest distributors of games in the digital distribution platform. Approximately 70% of games in the world are available on Steam. For instance, some of the biggest hits, such as Street Fighter, Tekken, Grand Theft Auto (GTA), Assassin’s Creed, and many more, are available on Steam. Moreover, it is one of the biggest distributors for both paid and free games available right now.
GOG (Good Old Games): Other than Steam, where you can play both paid and unpaid games, Steam is a highly trusted marketplace and has dominated the digital distribution scene, making it hard for others to compete. Other than Steam, we have GOG, which usually focuses on Digital Rights Management (DRM-free games), allowing you to play certain games for free without paying anything. It also has a very strong community for retro games. The Witcher, one of the most popular games, is also available on GOG.
Epic Games Store: There is also one more Shark in this Sea this Company doesn’t only believe in selling games they also believe in making Games. They also Known for its favorable revenue split (88/12) and periodic free game promotions to attract users. They own one of the most Amazing Game Engines regarding Graphics Around 50% of Highly Graphic pc Games are made in their Engine Named Unreal.
itch.io: itch.io is one of the greatest stores out there for indie game developers where the indie game developer can get donations to do the Gam Jam Competition and also get sponsorships for their games and Artwork.
Revenue Through Ads and In Apps
Until this point, a developer or a company creating games could earn money through selling their products physically or digitally. However, in the 21st century, with the advent of smartphones, the gaming industry has also changed, especially in the way money is earned in gaming. Now, about a billion games are made each day, and approximately 80% of them are mobile games. In mobile gaming, you can earn money through showing ads and in-app purchases.
Types of In-Game Ads
Games, especially mobile ones, show different types of ads. When I mention mobile games, I don’t mean ads only appear in mobile games; they also appear in PC and emulator games. However, compared to mobile games, ad revenue in PC and emulator games is negligible.
Banner Ads: This is a Small Banner type ad which you can see otop of the game or on the bottom of the game.
Interstitial Ads: These are the full screen ads like a post of some company or a video of 5 to 30 sec. These ads can be placed on different places to get revenue from game.
Rewarded Video Ads: Then here come the most useful ads not for just developer but also for the user this ad is used to give user something in exchange of watching an ad. like user can get Extra Coins new car or anything in exchange of watching a rewarded video which ;length can go from 30 sec to 1 minute.
Native Ads: Ads that blend seamlessly into the game’s content, like sponsored in-game items or characters.
Ad Networks
To Show or integrate ads in the game developers use different ad networks like AdMob, Unity Ads, Apploving, Yodo, or Facebook Audience Network. These ad networks provide tools for a developer to place ads in their games to get revenue from their games.
Ads are mostly used in mobile gaming. There is no doubt you can earn a high amount from ads, but having ads appear repeatedly is frustrating. When we talk about gaming, we need to make it enjoyable, not frustrating for users because of ads. Another good way to earn money in mobile games, in addition to running ads, is through in-app purchases. This method can work simultaneously to earn revenue and enhance the gaming experience.
In-app purchases and Microtransactions
In-app purchases (IAPs) and microtransactions have become a staple monetization strategy, particularly for mobile and free-to-play games. This method involves offering players the option to buy virtual goods, currency, or premium content within the game.
Types of In-App Purchases
There are three types of In-Apps Purchases
- Consumables
- Non-consumables
- Subscriptions
Consumables: The types of items that can be purchased more often and repeatedly like lives coins cash powerups in Games Etc
Non-consumables: The type where the user can purchase the item only once time like a Unique Skin for your character or a New gun or character.
Subscriptions: This method is more useful because it is subscription-based, requiring users to pay monthly or yearly for a type of royal pass. A great example of this is the Royal Pass in PUBG Mobile.
Implementing Microtransactions.
To successfully introduce microtransactions, developers should prioritize game balance to guarantee that both paying and non-paying users enjoy the experience. Overreliance on pay-to-win techniques might turn off a large section of your audience.
Advertising: Integrating Ads into Your Game
Advertising is another common technique to monetize games, particularly free-to-play ones. Developers may make money for each view or click by incorporating advertisements.
Crowdfunding: Raising Funds from the Community
Crowdfunding has become a viable option for developers seeking financial support before their game is complete. Platforms like Kickstarter and Indiegogo allow developers to present their projects to potential backers in exchange for early access, exclusive rewards, or recognition in the game credits.
Successful Crowdfunding Campaigns
Clear Vision and Goals: A well-defined project with clear goals and milestones helps attract backers.
Engaging Presentation: High-quality videos, concept art, and demos can make your campaign more appealing.
Community Engagement: Regular updates and communication with backers build trust and excitement.
Platforms
Kickstarter: Known for its all-or-nothing funding model, where projects must meet their goal to receive funds.
Indiegogo: Offers both fixed and flexible funding options, allowing developers to keep funds even if they don’t reach their goal.
Subscription Services: Offering Premium Access Subscription services are an increasingly popular way to generate steady revenue. By offering a subscription, developers can provide players with ongoing access to premium content, features, or exclusive benefits.
Types of Subscriptions
Season Passes: Players pay a one-time fee for access to a season’s worth of content, such as new levels, characters, or events.
Monthly Subscriptions: Regular payments for access to exclusive content, in-game currency, or special features.
Game Passes: Access to a library of games for a recurring fee, similar to services like Xbox Game Pass or PlayStation Now.
Implementing Subscription Models
To implement a successful subscription model, developers should ensure they offer consistent value to subscribers. Regular updates, exclusive content, and special perks can help retain subscribers and attract new ones.
Licensing and Partnerships: Expanding Your Reach
Licensing your game or partnering with other companies can open new revenue streams and expand your audience. This method involves allowing other entities to use your game’s intellectual property (IP) in exchange for royalties or a flat fee.
Types of Licensing
Merchandising: Licensing your game’s characters, artwork, or logos for use on merchandise like t-shirts, posters, or toys.
Media Rights: Allowing your game’s IP to be used in movies, TV shows, or comic books.
Brand Collaborations: Partnering with brands for cross-promotions or in-game advertisements.
Benefits of Partnerships
Increased Exposure: Partnerships can introduce your game to new audiences and markets.
Additional Revenue: Licensing deals and partnerships provide extra income beyond game sales.
Esports and Competitive Gaming: Monetizing through Tournaments
The rise of esports has created opportunities for developers to monetize their games through competitive gaming. Hosting tournaments, leagues, and competitive events can attract a dedicated player base and generate revenue through various channels.
Organizing Tournaments
Entry Fees: Charging players to participate in tournaments.
Sponsorships: Partnering with brands to sponsor events, providing financial support in exchange for advertising.
Ticket Sales: Selling tickets for live or online event spectators.
Streaming and Broadcasting
Ad Revenue: Earning money from ads shown during live streams or broadcasts of tournaments.
Subscription Services: Offering premium access to exclusive content, behind-the-scenes footage, or ad-free viewing.
Early Access and Beta Testing: Generating Revenue Before Launch
Offering early access or beta testing can generate revenue before the official launch of your game. This method involves providing players with early versions of your game in exchange for feedback and financial support.
Benefits of Early Access
Funding Development: Early access sales can help fund the remaining development stages.
Player Feedback: Early players can provide valuable feedback, helping you refine and improve your game.
Building a Community: Early access creates a dedicated community of players who can become advocates for your game.
Platforms for Early Access
Steam Early Access: Allows developers to sell unfinished games to players willing to support the development process.
Xbox Game Preview: Offers early access to games on the Xbox platform, with feedback channels for player input.
Conclusion
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