January 15, 2023

What Are the Various Monetization Models Used in the Gaming Industry?

What is game monetization?

Monetizing games is the process of generating money and making a profit from a game. It includes many tactics and approaches that game designers employ to make money from their creations. A high-quality mobile game requires a significant investment of time, effort, energy, labor, and many other related resources, but this is not an easy or inexpensive process.

Though some games are extremely successful immediately after release, some take several years to reach their full potential. Likewise, other games fail completely. Developers use game monetization to help ensure that the game is financially successful enough to pay for its creation.

Monetization models in the gaming industry

In-game advertising monetization

In today’s digital world ruled by smartphones, in-game ads are the primary source of generating income for mobile game producers. This monetization strategy has been shown to be the most successful option for companies looking to reach the masses of mobile gamers. Free-to-play mobile apps frequently monetize using advertisements. Mobile game developers can utilize banner advertisements, loading screen commercials, pop-ups and much more to capture the players’ attention. The most successful and profitable commercials are those that reward players for viewing videos by giving them in-game cash.

NFT gaming

NFTs (non-fungible tokens) are a new trend in blockchain gaming that is used to signify ownership of in-game items, including avatars, cosmetics, gear, and weaponry. Blockchain technology provides a new foundation for buying, selling, and exchanging virtual goods, as well as providing independently verifiable evidence of ownership. NFT game objects may be safely exchanged between players, or they can be sold for tokens for a sum of money. This new degree of in-game asset ownership is groundbreaking. The fungible token prizes from NFT games, which can be exchanged for real cash, are another novel aspect of these games.


Microtransactions are also referred to as in-game purchases or in-app purchases (IAPs). This is one of the most popular methods of revenue generation. It is the foundation of the “freemium” model, which is a combination of the words free and premium. This model allows players to download and play the game for free. Microtransactions are tiny in-game purchases that allow players to unlock or buy a limited number of additional features and content. Microtransactions include options such as additional lives, in-game currency, boosters, weapons, and vanity items. They are now widely used and offer a great deal of potential for earnings. Famous examples of such games include online real money slots and GTA online.

Premium game monetization model

Premium monetization is the conventional method of selling a game, in which the user purchases the entire game before playing it. Many games are now offered digitally through internet retailers, unlike in the past when this purchase took place exclusively at shops. The publisher receives a fixed, typically substantial amount from each player who purchases the game in advance. In contrast to the other approaches, this method may establish a significant barrier to access.

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Kyrie Mattos

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