How do gaming companies make money?

Top 7 earning models for online games
There are several ways to make money with online games; however, it totally depends on the gaming company, how they want to earn from their games? They can sell their games, or sell subscriptions, Freemium, in-game assets, or can make it far better with “Free to Play” model using ads for revenue generation. Here, we have mentioned some of the proven earning models of the gaming industry.

Subscription (Monthly/ Quarterly / Yearly)
The subscription model is the easiest revenue generation model for gaming companies. Using this model, game developers can earn targeted income. This model is based on a subscription the user must purchase to play their games. Typically it works with a Free-to-play model that allows new users to try the game, then users are liable to pay the subscription fee on a monthly basis or more to get full access to the game.

Freemium Games
Freemium subscription is the same type of subscription-based game; however, these games have some limitations that cannot be played or reach a higher level without purchasing the Premium version of the game.

Game Box
Game box or box sale is one of the traditional models to make revenue as these boxed version games are sold for a fixed amount for lifetime play. Guild Wars sold it: this model is common among team shooters like TF2, COD: MW2, and more.

In Game Advertising
Game developers also place in-game ad sections in their games to get revenue from Pay-Per-View ads. These games are also developed with interstitial ad features for example, the user has to view an ad to get one more chance. However, this cannot be a regular income source for every game as Google requires a high number of visitors for monetization.

Types of Ads:-

Banners ads:- A rectangular ad can be placed at the top or bottom of the game screen.

Interstitial ads:- Interstitial ads wraps the entire screen to grab the gamer’s attention.

Video ads:- Video ads are used as rewards in the game (e.g., free lives, new game items, etc.).

Game Asset Store
Game developers also offer in-game asset purchase options, where players can purchase different game assets or avatars. Moreover, many developers incorporate virtual currency in their games.The in-game virtual currency has a fixed exchange rate with real-world currency, and can be exchanged both ways. Entropia Universe is the game that introduced this concept for the first time.

Game Distribution
Game distribution is also a popular game revenue generation module. Game Developers earn money by distributing their games to other websites or game portals as it has become an enormous component for a lot of websites that are used to drive traffic and retain them with different strategies.

Play to Earn Games
Play to Earn or P2E is a newly introduced game revenue model which incorporate with blockchain elements such as NFTs. In these games, players are incentivized to use NFTs to their game performance, which helps create new NFTs.These games require upfront payment by the player to get started. However, the user has to purchase either cryptocurrency used in the game or in-game currency that they can later trade out.

Within this heading, we have informed you about game revenue models and how they work. In the next section, we will mention the top 10 earning games in the world. So, keep an eye and learn with us.