Microtransactions involve players exchanging real-world money for in-game items. Microtransactions are the most popular way in which mobile games generate money, and 79% of mobile games incorporate this strategy. Items that are sold through microtransactions usually offer players some form of improvement in gameplay. Some common examples are extra lives, in-game currency, weapons and the enhancers. Microtransactions can also be cosmetic items, special privileges, or access to new levels, characters, or abilities.
Carefully incorporate microtransactions into your games. Avoid creating a pay-to-win scenario where players have to buy something to complete your game. Create security measures to prevent accidental purchases or purchases by minors who do not have their parents' permission. Players who feel like you're pressuring them too much to buy things may stop playing.
Focus on selling the items your players most want to buy and schedule your offers to match the times when players are most likely to want to make a purchase. In-game ads are the second most popular way to make money with mobile games, and 71% of players say that ads are their preferred way to “pay” for free games. There are several types of ads, including bonus videos, bidding wall ads, banner ads, and interstitial ads. Most ads include other games or mobile apps.
Initial payments are becoming a rare way for mobile games to generate money due to the rise of the free model. However, some developers still use this method. Parents prefer pre-paid games to those that incorporate microtransactions because they eliminate the fear that children will make unauthorized purchases while playing. However, many players don't like prepaid models because they expect to be able to try free games instead of paying for a game they might not like.
Advance payments can be a one-time purchase or a recurring subscription model. This method of monetization works best for games with a strong value proposition and few competitors, such as AAA titles with established player bases. Freemium games generate revenue by offering a free version and one or more paid versions. Paid versions may contain additional levels, characters, functions, and other perks that players can't access in the free version of the game.
Some developers also offer players the option of paying for an ad-free version of the game. You can use freemium strategies to monetize players who are reluctant to make in-game purchases or interact with in-game ads. Data Monetization Means Selling player data to third parties. This is one of the most controversial ways to monetize games, and if you decide to do so, make sure you know and comply with the privacy and data collection laws of the countries in which you operate.
You should also let players know that you can sell their data to third parties and allow them to opt out. According to its website, the company offers both a set of tools for developing the game economy and a place to buy, sell, collect or exchange a wide variety of collectible items from the game. Game companies can monetize these platforms through sponsorships, partnerships and donations from spectators. You can generate income by producing and selling products yourself or by selling the rights to make products based on your game to third parties.
Players have the option of buying virtual items, currencies or cosmetic items that enhance their game or customize their characters. Video games are all about entertainment, and most developers focus on making games fun for players. With subscription services for video games, such as Google Stadia or Apple Arcade, the trend for gaming items will grow “with steroids.” And the skins integrated into games are becoming one of their main options for maintaining and entertaining communities and, at the same time, monetizing their games. On the contrary, the free-to-play model has proven to be one of the most profitable video game models of the modern era.
Through several business models, including free, paid and subscription-based models, video game companies generate revenue from purchases, game sales, and in-game subscriptions. Time-based monetization strategies involve limitations in gameplay that can be overcome over time or with in-game purchases. Game companies can monetize these communities through in-game events, virtual meetings, and social interactions. Your monetization strategy influences the profitability of your game and the time it will take to achieve profitability.
