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Concept
Games as a service
Summary
In the video game industry, games as a service (GaaS) represents providing video games or game content on a continuing revenue model, similar to software as a service. Games as a service are ways to monetize video games either after their initial sale, or to support a free-to-play model. Games released under the GaaS model typically receive a long or indefinite stream of monetized new content over time to encourage players to continue paying to support the game. This often leads to games that work under a GaaS model to be called "living games", "live games", or "live service games" since they continually change with these updates.
The idea of games as a service began with the introduction of massively multiplayer online games (MMOs) like World of Warcraft, where the game's subscription model approach assured continued revenues to the developer and publisher to create new content. Over time, new forms of offering continued GaaS revenues have come about. A significant impact on the use of GaaS was the expansion of mobile gaming which often include a social element, such as playing or competing with friends, and with players wanting to buy into GaaS to continue to play with friends.
Chinese publisher Tencent was one of the first companies to jump onto this around 2007 and 2008, establishing several different ways to monetize their products as a service to Chinese players which typically play on phone or at internet cafés rather than on consoles or computers, and since has become the world's largest video game publisher in terms of revenue. Another influential game establishing games as a service was Team Fortress 2. To fight against a shrinking player-base, Valve released the first of several free updates in 2008, the "Gold Rush Update" which featured new weapons and cosmetic skins that could be unlocked through in-game achievements. Further updates added similar weapons which starting include monetization options, such as buying virtual keys to open in-game loot boxes.
Official source
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