How Do Game Companies Make Money by Updating Games?
Game companies have long relied on the sale of games to generate revenue. However, with the rise of digital distribution and the subscription model, updating games has become a crucial aspect of their business strategy. In this article, we will explore the various ways in which game companies make money by updating their games.
1. Post-Launch Content Updates
One of the primary ways game companies make money through updates is by adding new content to their games. This can include new levels, characters, or features that enhance the gameplay experience. By offering these updates for free, game companies can keep players engaged and encourage them to continue playing.
For example, Electronic Arts regularly updates their games with new content. In FIFA, they release new teams, stadiums, and player transfers. In The Sims, they introduce new objects, clothing, and hairstyles. These updates keep the game fresh and exciting, and players often look forward to them.
2. Paid Expansion Packs
In addition to free content updates, game companies often release paid expansion packs. These packs typically include significant new content, such as new storylines, characters, and gameplay mechanics. By charging for these packs, game companies can generate additional revenue.
Take Rockstar Games as an example. Their Grand Theft Auto V expansion pack, Grand Theft Auto Online, was a massive success. It introduced a new game mode, new characters, and a vast open world for players to explore. This expansion pack generated millions of dollars in revenue for Rockstar.
3. Season Passes
Season passes have become a popular way for game companies to make money from updates. These passes typically offer a bundle of content, including expansion packs, new levels, and exclusive in-game items. Players who purchase a season pass can access all the content without having to buy it separately.
For instance, Ubisoft has been successful with their season passes. In Assassin’s Creed Odyssey, the season pass included three expansion packs, each offering new storylines and gameplay features. This approach allowed Ubisoft to generate significant revenue from the game’s updates.
4. Microtransactions
Microtransactions have become a significant source of revenue for game companies. These are small purchases made within a game, such as cosmetic items, in-game currency, or power-ups. While these transactions may seem small, they can add up to substantial revenue for game companies.
Take Supercell, the developer of Clash of Clans and Brawl Stars. These games are free to download and play, but players can spend real money on in-game items. This business model has allowed Supercell to generate billions of dollars in revenue.
5. Subscription Models
Subscription models have gained popularity in the gaming industry. These models allow players to pay a monthly or annual fee to access a library of games. Game companies can make money by offering exclusive content or updates to subscribers.
One of the most successful examples of this model is Microsoft’s Xbox Game Pass. For a monthly fee, subscribers can access a vast library of games, including new releases. Microsoft also offers exclusive updates and content to Game Pass subscribers, which helps drive subscriptions.
6. Community Engagement
Engaging with the gaming community can also be a source of revenue for game companies. By hosting events, contests, and giveaways, game companies can create buzz around their games and encourage players to spend money.
For example, Blizzard Entertainment hosts regular World of Warcraft community events, such as BlizzCon. These events not only engage the community but also generate revenue through ticket sales and merchandise.
In conclusion, game companies have various ways to make money by updating their games. From free content updates to paid expansion packs and microtransactions, these strategies help keep players engaged and generate significant revenue for game developers.
