The Evolution and Future of Gaming Business Models | Acquired
Join Mitch Lasky and Blake Robbins, leading figures in the gaming industry, as they explore the transformative journey of gaming business models.
From the early coin-operated games to the modern era of ‘forever games’ and platform-based publishers, they discuss the significant shifts and future possibilities in the industry.
Advent of Platform-Based Publishers
The gaming industry has transitioned towards platform-based publishers, with platforms like Steam becoming a prominent hub for game launches.
Even industry giants like Microsoft have joined this trend, driven by the market’s demand for more accessible and diversified gaming experiences.
Future Prospects for Platform-Based Publishers
The future of platform-based publishers could witness major players like Nintendo making significant strides in the App Store business.
However, the emergence of Microsoft’s Game Pass could signal a shift from user aggregation to supply aggregation, possibly marking a new direction for platform-based publishers.
Rise of Cloud Gaming
Technological advancements and scalability have rendered cloud gaming economically viable, marking a significant milestone in the gaming industry.
This shift has been propelled by an expansion in the gaming audience, particularly among casual gamers who desire more complex games without the need for a gaming PC or console.
Impact of Business Models on Technological Waves
Cloud gaming could potentially alter the business model of the gaming industry.
With the gaming audience witnessing a significant expansion over the past decade, there’s a substantial opportunity for cloud gaming.
This could instigate a shift in the way games are created and monetized.
Successful Demand Aggregation
Riot Games exemplifies a company that has successfully aggregated demand for its games.
By launching new games via their own launcher, Riot has effectively minimized its customer acquisition cost.
This strategy provides a significant competitive advantage and could potentially be adopted by other game developers.
Leveraging User Base for Nintendo
Nintendo could potentially exploit its large user base to reduce customer acquisition costs for new games.
A fully backward compatible Switch and an open app store could dramatically improve Nintendo’s position in terms of third-party revenue.
Nintendo’s Strategy: A Forecast for the Industry
Nintendo’s strategy could provide significant insights into the direction of the gaming industry over the next decade.
If Nintendo reverts to a hardware-focused strategy, it would signal a return to traditional business models.
However, if it embraces platform-based publishing, it could herald a new era in the gaming industry.