How Much Money Do Gaming Companies Make?
By Space Coast Daily // June 23, 2020
Right from our childhood days, we have been playing games like Pac-man, Mario, Super Mario, Recoil, Road Rash, etc.
Then games like FIFA ‘98, Cricket 2002, Vice City, etc. came into our lives. The quality and the standards of the game started changing for good.
When the mobile phone was introduced into the market there were only a few games like Snakes, Portal, etc. Nokia was the first company to make games like snake and give it for free to its customers.
Those were the times when the mobile companies used to make games for mobile users and it was not made for direct business.
These days you will have to buy games on mobile or at least you will have to watch advertisements. The whole concept of gaming has changed these days.
Seeing advertisements have actually become so common and unlike before nobody complains.
Different Methods of Generating Revenue by Developing Games
There are various ways by which a gaming company can generate revenues by developing games. They can earn typically by selling the games directly or by displaying ads in the game etc.
• Conventional Method
Generally, the gaming companies generate revenues, or at least they used to completely depend upon revenues by directly selling them to the customers from the stores.
It is like you make a game and sell it to different stores from where the customers buy your games.
There is another conventional way to earn money by making the game is by publishing it on Steam. Like, suppose you publish a game for $15 then for every sale of the game you have to give $2 to Steam and you will earn $13 for each sale.
When you upload your game in the store from where people can download it whether you can charge them for downloading or by showing an ad in the game.
This is a new and interesting concept. When you play a game after downloading it you will see in between the games ads will be displayed.
Now take that concept the gamers have developed such games that by seeing ads you can get certain tools to continue the game.
Like, when a game is widely played, the gaming company approaches the mobile gamers to post their ads and pay them huge money for that.
Such ads are not in control of the players playing the game. Another exciting and intelligent way is to play the game and watch ads for more points.
So whenever you are watching the ads the gaming company is getting a small amount of money, when millions and billions of people are watching it the amount takes a gigantic shape.
• Free to Play
Another concept arose in late 2010 that earned money by making F2P games that are Free to Play. In the games like Call of Duty, Counter-Strike: Global Offensive, League of Legends, etc. has provided you to buy various things from the games.
Buying and selling different, latest and effective or fancy looking skins is the biggest way to earn money in the gaming world.
It is better to have an account on Steam. It will give you access to all the Skins in the world and you can buy or sell them without any headache of the privacy breach.
Though the subscription method of earning from games is very rare these days still there are some. In such games, you will have to pay a monthly or a yearly subscription amount which will go directly to the gamers. Runescape is such a game that works on the principals of subscription service.
They also offer a free version of the game and once you get addicted to it then you will end up subscribing to it. Some games, which I rarely see nowadays, offer a subscription service.
When you subscribe to it and become a member of these various games then you will be able to use various weapons and will have many coins to play and compete in the game.
Even in some games when you subscribe to it, the games will not show any ads. Hence, gamers will earn in some or the other way.
Most Games are Not Profitable
If you check the number of video games that come out every year most of them are based on shooting. The world has become obsessed with such games.
There are games like Call of Duty, Hitman, Assassin’s Creed, and Counter-Strike: Global Offensive, PubG, Free Fire, etc.
People are downloading these games and playing a lot. Even many big companies have arranged tournaments on the above games.
EA has done the best thing; they know their genre and have maintained it. They have hardly made games on such fights rather they have concentrated on FIFA, Need for Speed, etc.
It is very important to concentrate on your genre otherwise you will completely be out of the market. In the case of these shooting games, it is important to make and keep a character with some differences.
If there is nothing unique about it then the gaming companies will never earn money as the customers will not like the game.
Game Developers are Earning a Good Amount of Money
If you go through the statistics of every year you would find out that it gives great information about the dynamic change among mobile users.
Since the gaming companies have started developing mobile games that are also of great quality there has been a steady rise among the players.
The quality and the gameplay have changed over the years. There have been various ways and methods by which people can play free but still, the game developers will earn money.
These days the games have been made so competitive that people are even ready to spend money on the games to remain better than the rest. There are various segments in the gaming industry and their income also varies that way.
The easy and monotonous games with comparatively lesser coding than the more code studded ones earn around $1000 a month, and some earn $1,00,00 just because of their gameplay and brilliant coding and strategy. In the upcoming years, we will witness many more games and earning methods.
Whichever method game developers decide to go with to make their revenue, many of them will be hoping to achieve a slice of the success of GTA5 – the second-highest-grossing video game of all time, generating $6 billion in worldwide revenue to date.
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