Your business model can have a direct impact on your prices and therefore on your entire business strategy. The most obvious example remains in video games, which have had many business models and which see the coexistence of many of them.
Arcade rooms: microtransactions
One of the first business models of video games was that of arcades where it was a question of paying according to consumption. This system was a perfect success in the 70s and 90s and it was not uncommon to see the famous pinball machine in bars, which represented an additional sale and allowed the customer to want to stay and sometimes come. This business model is based on the short time or number of lives you have, in other words an offer that sells out quickly. It is addictive and companies like Capcom, Atari or Sega have made their fortunes this way. The upside is that it requires little effort in commercial terms as you just have to bring the prospect for them to generally turn into a customer. It can be considered as the beginning of the micro transaction.
The first video games on consoles: purchase
The business model is particularly interesting because each manufacturer has adopted a different strategy. While some relied on a relatively inexpensive console, others did the opposite. The advantage remains that, as with printers, it was the consumables that generated value. The console was therefore often sold for a paltry price, while the “cartridges” or CD-Roms were sometimes extremely high, as is often the case even today. They were particularly popular until 2012 when the online gaming market took hold and it has to be said that the internet was extremely prolific in terms of business model.
The model of the playroom
At the beginning of the Internet and especially when ADSL connections appeared, it was the arcades that became essential. If they have worked so well, it is mainly due to the scarcity of good internet connections in people’s homes. The model was quite simple since it depended most of the time on the time spent and with subscription cards for those who wanted to go there regularly, even “unlimited” packages for the more passionate. An interesting model since it involved the capture of large consumers and their regular presence.
Physical games … with subscription
For the forties, it’s almost a reference to a single game: World of Warcraft. The principle was simple: You start by purchasing the physical game in the store with one month of free play. Subsequently and if you wanted to continue, you had to pay a subscription of ten euros which allowed the company to keep the servers running without interruption and to carry out developments. As you may have guessed, the great difficulty of this strategy remains to get the game to buy. The price positioning is interesting enough to note as the game was relatively expensive compared to the subscription. Once you invested the first amount, you felt like you were losing your money if you didn’t subscribe for a while, which mechanically created loyalty. Of course, some other games only work with a subscription model.
Les free-to-play and the item-selling
This development is very interesting to observe because it is the trend that has been developing for several years. Now the delivery of a game is very often free of charge, which is particularly the case with applications. But it’s not because the game is free that everything is free of course. To make money, companies have set up: the sale of items, which consists of selling items or bonuses in a game … which are not necessarily useful and can only be decorative or “loot box” or “box to loot” that you allow you to have random items. Most of the time these are used for your progress and encourage you to make many small purchases with the packs. This sales tactic requires rapid renewal of offers and often uses one of the biggest selling factors: FOMO. This is to create a sense of urgency for a rare purchase. This sales method must be limited in time or quantity if you want to use it and be done with good timing. Overall, “free-to-play” games operate on the model of microtransactions.
It is more of a denomination than a true business model. This business model generally implies that the more you pay, the higher your chances of being in a game.If you still need to know the basics of winning, paying gives you such an edge that even very regular players will have a hard time. compete with you. This system works especially thanks to wealthy customers who will want to dominate others. Create another leverage on customers: pride. While some will be content to progress quietly, others will sometimes invest heavily.
games on request
This budget model is also very popular, particularly by some very large game publishers like EA or Xbox. It’s quite simple because it consists of a direct sale where publishers offer you a certain number of titles in a catalog. You then have unlimited access to all titles for a certain period of time. It allows a different clientele to satisfy their needs: that of being able to change the game as they wish. Please note that this mode generally implies that we recognize the quality of your products / services if you wish to be able to sell. Typically, these games require downloads and often fees with an annual or monthly subscription. In some cases, you pay for the ability to play a single game and sometimes for a limited time.