IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03652786.html
   My bibliography  Save this paper

Monetization

Author

Listed:
  • Myriam Davidovici

    (IP Paris - Institut Polytechnique de Paris, ECO-Télécom Paris - Equipe Eco Economie - I3 SES - Institut interdisciplinaire de l’innovation de Telecom Paris - Télécom ParisTech - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique, SES - Département Sciences Economiques et Sociales - Télécom ParisTech)

Abstract

Digital monetization mechanics in paid and free games are converging in creating an engaged and long-term relationship between players and the game: Game-as-a-Service games provide dynamic content releases in the form of packs of different natures, while F2P games release both units and bundles of items with different access and usage modes, mixing play and purchase modes. Paid and free models need to innovate their content in order to keep players engaged, increase the game's lifetime and be able to offer new spending opportunities to players. Paid and free monetization models have their own strengths and weaknesses. Paid models of monetization are less difficult to design and less random, but lead to a higher financial barrier for players, excluding potentially interested players or friends to play with. On the other hand, free models have a more flexible monetization where it is possible to test in real-time new mechanics, where there is no maximum expense limit but where the management and monitoring of the free/pay differential value is increasingly more complex. That is the reason why F2P monetization mechanics have recently come under criticism. However, F2P models allow for fast adjustment based on players' reactions and complaints. Today, "real-money" monetization in P2E games (such as in the Daily Fantasy Sports games genre) is also challenging gambling jurisdictions in countries all over the world. This highlights how choices made about the design of monetization mechanics will make the game fall under gambling laws or not. Monetization has become a connected, real-time and evolving activity, mixing traditional paid models with free models. These techniques are coexisting in a digital-distribution era implying that each has its pros and cons.

Suggested Citation

  • Myriam Davidovici, 2022. "Monetization," Post-Print hal-03652786, HAL.
  • Handle: RePEc:hal:journl:hal-03652786
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-03652786. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.