There was a time when video games were a one-time deal. You’d go to a store, choose a game, pay for it, and play. That was the dominant model for decades. In many ways, it still is. But, thanks to the advent of new ideas and innovations, it’s no longer the only business model in town. Today, game developers and proprietors have found ways to either reduce the initial outlay for consumers or remove it completely in favor of different payment models.
Subscriptions Start New Trends
We’re talking specifically about subscription services, on-demand payments, and in-game transactions. These mechanisms have become popular over the last two decades, but gaming companies have actually been trying to mix things up since the 1980s. Mattel and Atari were the first to experiment with downloadable games. The latter’s GameLine and the former’s PlayCable were subscription services that allowed players to pay a fee and download games over the phone.
The gaming network Steam is basically a modern version of these services. However, due to technical limitations and the speed at which users could download games in the 1980s, PlayCable and GameLine didn’t take off. What they did do, however, is prove that subscription models are possible and, in turn, something consumers were interested in. As such, Nintendo and Sega tried their own rent-to-play subscription services in the 1990s. Again, they didn’t take hold, but the innovations were another step towards the kinds of services we see today.
One of the major turning points for gaming was the rise of online casinos. Essentially part of the same industry but offering a slightly different experience, online casino developers found a way to combine on-demand payments with random gaming dynamics. Put simply, companies such as Playtech were able to use random number generators (RNGs) to create fair online casino games. These games could then be plugged into online casino sites which worked with established payment processors such as Visa and Skrill. Thus, in the late 1990s, real money online casino gaming was born.
On-Demand and In-Game Payments Have Changed the Industry
Today, regulations are in place to ensure that every popular real money casino game online is fair and safe. Moreover, consumers can make deposits whenever they want and play games such as Devil’s Delight at a level that suits them. For example, bets in this real money casino game start at $0.01. Therefore, what you’ve got is a system of on-demand payments. This system has since been used in video gaming. For example, loot boxes have created a continuous revenue stream for companies.
These in-game upgrades are optional, but they add another layer of excitement to a player’s experience. However, this experience comes at a cost. Therefore, this model allows the creators to reduce the upfront cost of their game or offer it for free, safe in the knowledge they can earn money through in-game transactions. Looking towards the future, in-game payments could become even more significant thanks to cryptocurrencies.
Bitcoin et al have the power to make microtransactions more affordable. This could bring down the cost of in-game transactions which, in turn, could create more payment opportunities. Quite how or when that might happen is unclear. However, what’s certain is that the power of payments has changed gaming. It’s created new experiences and made products more affordable, which can only be a positive.
