Games as a service (GaaS) is one form of providing access to video games by subscription, similar to software as a service . Games as a service is a way to monetize video games either after their initial sale or to support a free game model. Games released under the GaaS model typically receive a long or undefined flow of monetized new content over time to encourage players to continue to pay for game support. This often leads to what GaaS games are called “live games” because they are constantly changing with these updates.
History and Forms
The idea of “Games as a Service” appeared around 2004 with the advent of massively multiplayer online games (MMOs), such as World of Warcraft , where the approach of the game subscription model guaranteed a steady income for the developer and publisher to continue creating new content [1] . Over time, new forms of GaaS monetization have emerged. A significant impact on the use of GaaS has had the spread of mobile games, which often include a social element, such as playing or competing with friends, as well as with players who want to buy GaaS in order to continue playing with friends. The Chinese publisher Tencent was one of the first companies to start doing this in 2007 and 2008, creating several different ways to monetize its products as a service for Chinese players, and has since become the world's largest video game publisher in terms of revenue [2] .
Impact
Analyst Digital River estimates that by 2016, 25% of gaming revenue on personal computers comes from some form of GaaS. The firm claimed that this affects consumers who want to get more from games that would otherwise be offered at full price ($ 60 at the time the report was published), or would look for discounts, making the market ripe for monetization after release [3] . Several major publishers, including Square Enix , Ubisoft, and Electronic Arts , cited GaaS as a significant focus for their product lines in 2017, while others, such as Activision Blizzard and Take-Two Interactive, recognize the importance of post-release game support. for their financial results [4] . GaaS is also seen as a growing channel for indie video games, which often have a wider potential installation base (on computers, consoles, and mobile devices) from which they can receive revenue from services [5] .
A study by DFC Intelligence in 2018 found that the value of Electronic Arts has risen from $ 4 billion to $ 33 billion since 2012, while the cost of Activision Blizzard has risen from $ 20 billion to $ 60 billion over the same period, with both increases attributable in part to the use of the GaaS model in their game. Electronic Arts earned $ 2 billion in GaaS transactions in 2018 [6] .
Notes
- ↑ Cook. How games as a service are changing the way we play . Red Bull (January 15, 2018). Date of appeal September 17, 2018.
- ↑ Emerging Trends In Games-as-a-Service .
- ↑ Saed. The games as a service trend has "tripled" the industry's value - report . VG247 (October 11, 2017). Date of appeal September 17, 2018.
- ↑ Schreier. Top Video Game Companies Won't Stop Talking About 'Games As A Service' . Kotaku (May 30, 2017). Date of appeal September 17, 2018.
- ↑ Batchelor. Games as a Service: What does it mean for indies? . MCV (March 3, 2014). Date of appeal September 17, 2018.
- ↑ Batchelor. EA and Activision's $ 79bn games-as-a-service growth . GamesIndustry.biz (October 19, 2018). Date of appeal October 19, 2018.