UPDATED JULY 6, 2008, 7:30pm PST
Due to a version control issue I accidentally deleted the pointer to this list of 29 potential video game monetization methods from Jeremy Liew at Lightspeed VP Blog. This list originally appeared as a guest post on Jeremy's blog. I didn't realize it got botched when I hit publish. Apologies.
David Perry, Chief Creative Officer of Acclaim Games has identified 29 possible ways to monetize video games.
Potential Video Game Monetization Methods.
List ? 2008 David Perry. www.dperry.com
1. Retail (bricks & mortar), selling boxed product at places like EBGames, Gamestop or Virgin Megastore. This also includes mom & pop stores, hardcore specialist gamer shops, and online retailers like Amazon.com that ship the product to your door. The gap in this market is "same day" physical delivery of games too big to download or 1st party titles (basically combining online & bricks and mortar in one solution.) The future of this space is pre-paid cards as the consoles will (in the future) go online only, distributing everything directly to the consumer, so retail (to make it worth selling the hardware) will need a cut of the software sales. Hence prepaid cards. The Gamestop tactic of re-selling USED games (to avoid paying for new product) will finally be over. To drive users to retail, the making of special "enhanced" versions just for their retail chain is a common practice.
2. Digital Distribution (direct download, direct to consumer), like the Steam service from Valve Software, the PlayStation Store or Xbox Live Arcade from Microsoft. This also technically includes "unlocking" access to a game already on a service, like the faux install process on Facebook (however the player would have to pay to do this unlock.)
3. In-Game Advertising (either obvious billboards or branded items in the game world, or subtle product placement (certain clothing, sunglasses or vehicles like Gaia Online), or built into story elements (like the hero's girlfriend works for a Neutrogena). Companies like IGA, Massive, Game Jacket, Mochi Media, Google, VideoEgg etc.
4. Around-Game Advertising (basically making money from banner & skyscraper adverts that circle the gameplay window), this is common on flash game aggregator sites, they use services like Google, Commission Junction, personal affiliate deals etc. The revenue comes from CPM (cost per thousand views), CPC (cost per click), CPA (cost per acquisition of a player), CPP (cost for a "real" player who really plays for a certain time, or to a certain level.)… Read more