Mon. Nov 23rd, 2020

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The Rise of subscription model-based online gaming – Good, Bad, or Both?

2 min read

In the past decade, many big names in the gaming industry have announced subscription models for their platforms. Some have already implemented it (EA, Origin Access, etc.) while others are on their way towards shifting from an ad-based revenue model to a subscription-based one. There’s no stopping this subscription trend.

Why Developers Want It

In the past, advertisements have served gaming companies well. In fact, ads are still the leading revenue generators for top gaming companies. But, developers want subscription-based models on gaming platforms because –

  • They get to create a loyal base of regular gamers. Lovers of jackpot slots can stick to one platform and expect high-quality service in return for subscription fees.
  • Top gaming companies want to advertise themselves. Gaming platforms realize the potential of selling branded merchandise. Why should they advertise other brands on their games when they can advertise themselves?
  • Players don’t appreciate full-size ads or annoying in-game purchases between every level. They’d rather pay a lumpsum amount.

Overall, if the price is right and the games are of good quality, subscription-based gaming platforms offer a win-win for both creators and gamers.

Why is Every Major Company Investing in Subscription Models?

Subscription-based models make gambling more exciting and gaming, in general, more exciting. Top companies are rushing to establish this revenue model because –

  • The Asian market has proven that its free-to-play games can compete with expensive Western video games
  • Top companies like Amazon and Netflix use subscription models to lock in customers.
  • Subscriptions guarantee revenue. Plus, companies have no obligation towards advertisers.

Beneficial in the Long-Run?

Will the subscription model be successful in the long run, or will gamers stick to free games? If Netflix and Amazon can succeed in implementing subscription-based revenue models, why can’t gaming companies? Gamers, too, can benefit because –

  • They get to play a lot of games with only one subscription payment.
  • The pressure is on the developers to provide top-quality service to paid customers.
  • Indie developers will get a chance to explore their creativity, now that they know that revenue is guaranteed thanks to subscribers.

Players will pay if they’re assured quality games. Gaming companies must take this leap of faith!