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Concept
Video game monetization
Summary
Video game monetization is a type of process that a video game publisher can use to generate revenue from a video game product. The methods of monetization may vary between games, especially when they come from different genres or platforms, but they all serve the same purpose to return money to the game developers, copyright owners, and other stakeholders. As the monetization methods continue to diversify, they also affect the game design in a way that sometimes leads to criticism.
Although there are several business models to monetize video games, they can be categorized into six major models. A video game may use more than one of these models at once.
Retail purchase is the traditional method by which games are sold from brick and mortar stores or online retailers. Customers pay for a physical copy of the game and any other game related peripheral devices required for play in-store. Retail purchasing has previously made up the bulk of game-related transactions, but it has been on the decline in recent years due to the rise of digital distribution and mobile gaming. However, the importance of brick and mortar game stores as a place for gamers to gather and show their passion still remains. Furthermore, some retail purchases may come with collectible boxes and possible in-game items to attract customers over digital download. The retail market also incorporates the second-hand market, the trading-in and resale of used games, such as through GameStop.
Digital distribution in video games
Digital distribution or digital download is similar in practice to retail purchasing, but is different in venue. Instead of acquiring a game through a physical store, customers buy their games online and download the game's data directly to their devices. Many games sold through digital download are distributed by means of a third-party service that functions in the same way as a physical store, selling a variety of games from many different developers in one location. Valve's Steam is an example of digital distribution platforms for PC gaming.
Official source
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