Your Objective: Understanding the Video Games Business: Industry Business Models

📚 THE LEARNING

The video game industry uses a variety of business models to generate revenue, these include:

🛍 Retail sales: Selling physical copies of games in stores or online.
🖥 Digital sales: Selling games digitally through platforms like Steam, PlayStation Store, or the App Store.
📱 Free-to-play: Players download and play a game for free, but offer in-game purchases for items or features that enhance the gameplay experience.
📌 Subscription-based: Requires players to pay a subscription fee to access the game or additional content.
🪧 Advertising: Displaying ads within the game to generate revenue.
🤝🏼 Sponsorship and partnerships: Partnering with brands or other companies to promote their products within the game.
🎮 Esports and competitive gaming: Hosting esports events or tournaments, with revenue generated through sponsorships, ticket sales, and advertising.
💰 Crowdfunding: Raising funds for game development through crowdfunding platforms like Kickstarter or Indiegogo.
🎬 Licensing: Licensing the game or its characters for use in other products or media, like movies or merchandise.

Video game companies may use one or more of these business models, depending on the game and the target audience. The choice of business model can have a significant impact on the game's revenue and profitability, as well as on player engagement and retention.

🎮 THE APPLICATION 
“How does this help me with my job search?”

The choice of business model has an impact on a game's profitability, player engagement, and overall success.

For job seekers, knowing different business models used in the industry shows employers they have an understanding industry and trends. This gives them an edge over other candidates and makes them more desirable hires.

For those wanting to start their own game company, knowing various business models can help you choose the right model for the game and target audience. It can also help make informed decisions on revenue streams, marketing strategies, and other aspects of game development.

Understanding business models can help you and the company make informed decisions and adapt to the ever-changing landscape, leading to greater success in your career or business endeavors.

Graph from: https://lnkd.in/gGracJMw

Is there a specific business model you’re excited about? Have you thought about which game company doing this?