I made an article in regards to SQUARE ENIX’s interest regarding the Games as a Service model. The concept of a Games as a Service model has been flung about as a successful practice. According to this report by Digital River, it seems like a natural step forward for the industry.
The Impact of Games as a Service in the Industry.
The report, Defend Your Kingdom: What Game Publishers Need to Know About Monetization & Fraud. Let’s start with the basics, the games industry today is valued at $96.5 Billion Dollars. “Following a decade of unparalleled growth, interactive entertainment today is one of the largest in the world.” The report says.
The report also noted that developers of all sizes are benefiting from the “steady stream of in-game content that both serves player expectations and increases their revenue per user.” In fact, this applies to most PC games with digital revenue.
It was also found that the consumers of games are showing more interest towards digitalized content. “Consumers are less willing to pay $60 for a boxed game and instead choose titles with a steady stream of new content,” the report said. “Publishers seek to meet these expectations and have adopted a ‘games as a service’ model, releasing fewer titles over time while keeping players engaged longer with regular updates and add-ons.”
So, what happens because of this? Well, the report sheds some light in this with their findings. According to the report, PC players in the US wait 21 days after they decide they want content before buying in the hopes they can take advantage of a sale. In other words, “Gamers are gaming the games market”.
The need for discounts and key resellers, and the risks it involves.
This is all because gamers look for ways to find workarounds through sales and discounts. This brings up a major problem with the model and key resellers that meet this expectation. “”When the fraud is detected, publishers who sold the keys are hit with chargeback fees,” the report reads. “Game makers can deactivate illegitimate keys, but the players who bought them do not usually know they are part of a scam. Gamers may believe their keys have been deactivated for no reason, and this can cause a negative backlash.”
Does this sound familiar to you? Well, if you have used services like Humble Bundle, G2A and other sort of key resellers. This must be a very familiar setting for you. However, G2A is the reseller that suffers the most accusations of fraud. In other words, game makers need to invest in proper payment safeguards according to the report.
A Games as a Service model seems unappealing for many. Considering that some conservationists prefer to have the 60 dollar games on the box. However, considering the fact that digital marketplaces offer more flexible choices like sales and discounts. Maybe we can see a rise in popularity amongst publishers. You can read the full report in the Google Drive backup I made right here.