How Does The Gaming Industry Earn Revenue Through Games?

The gaming industry is a part of the economic sector involved in game marketing, development, and monetization. In India, the gaming industry was valued at 60 billion in 2019, and now it is expected to reach around 250 billion in 2024. The growth rate of the defense games in the gaming industry is continuously rising in India. India holds the world’s maximum youth population and embraces the new generation’s interest in entertainment and digital sports.

Above 60% of game lovers in India are under 24. There is also a rapid increase in mobile gaming due to the affordability of the Internet and smartphones. Estimated by the number of users in India, this country is counted as one of the top gaming markets in the world.

 How is the gaming industry earning?

Every industry’s growth is calculated by the amount of revenue it generates, and there are numerous ways for earning revenue in the gaming industry. Now we will discuss a few popular business models of games.

Advertising model – Several td games use advertising as the first business model as it is pretty popular. This is nothing new in the digital industry and is very common among the game-producing industries. Within this model, display ads, Interstitial ads, and incentivized ads are displayed within the game to earn money. You can monetize your games on different platforms, such as Google AdMob, owned by Google.

Many top brands are investing in sports, and this industry is growing rapidly. From the perspective of a customer, maximum free games such as clash royale, earn their revenue from advertisements. There are three major parameters in advertisements, cost per install, cost per click, and cost per impression.

Upfront payment model – a friend payment model is the second business model under which games charge a specific fee to download a particular game. It is used by several big games which are pretty popular.

Subscription model – subscription model is the third business model used by games under which games continuously charge a small fee. Most of the video games use this model, which runs their games with multiplayer features. The major reason behind charging a recurring fee for these video games is that there is a high server and maintenance cost for these games. These video games do not entirely rely on advertising and upfront payment to cover the cost, which is why such multiplayer online video games charge a recurrent fee.

Free 2 play – Next

Under this business model, users can download the game for free but must pay a specific fee to get access to various upgrades in the game.

Freemium business model- Under the freemium business model, users can download and play the game for free Bird space a specific amount to make various purchases in the game called microtransactions.

Hybrid model – In a hybrid business model, games use 2–3 types of business models altogether. For instance, a game uses advertising businesses under which they showcase ads, but if the user wants an ad-free experience, it becomes a hybrid business model.


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