Game Monetization: A 2020 Outlook

Game Monetization: A 2020 Outlook

Video games are huge and are only going to keep growing as we move into 2020. Engagement in video games has been growing which could mean the potential for huge profits for developers and other individuals interested in the space. The expansion of technology will mean expansion for video game tournaments, video content, virtual reality, special events, and products for gamers.

A Move Towards Predictable Earnings

It wasn’t too long ago that the video game industry was highly dependent on new releases. Companies would make a lot of profit in the first days of release but had few avenues to continue making money on those games. That has changed in a huge way in the last few years. With the popularity of mobile games, in-app purchases, Reward Video Ads, and other money-making options, game developers can expect to bring in revenue on a regular basis. This leads to more money and getting it on a more predictable schedule.

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Basic Statistics & Facts About Gaming

According to Statista, the video game market on a global level was worth around $71 billion in United States dollars. However, by the end of 2020, it is expected that this number will increase to at least $90 billion dollars. Video game developers also have more ways to make money today and into 2020. Revenue is created through users buying games, advertisements placed within the game, and users who spend money on micro-transactions.

Gaming Expenditures in the United States

Estimates show that around 60% of games in the U.S. own one to 10 paid PC games, paid mobile games, or paid console games. In 2016, the average expenditure on games was about $11.38 per consumer. In 2015, in-game purchases in video games were believed to be roughly $22 billion, while it is expected to grow to $32 billion by 2020. That adds up to a huge number of transactions when the purchases are typically between $1 and $20. A small 11% of gamers spent at least $250 on purchases in games.

Earning Models for Mobile Games

There are a huge number of options for monetizing mobile games, but the most popular is and is likely to continue to be in-app advertising. About 80% of iOS games used this model in 2017, while 70% of Android games did the same thing. This could easily stay the same as we move closer to 2020. The second model used most in games for monetization is microtransactions. For mobile games using advertising as their primary method of earning, Unity Ads, Chartboost, and AdMob were the most widely used SDKs. Since mobile gamers tend to prefer free games supported by ads, two-thirds of the games on Google Play have been using the model.

What can you expect in 2020? Increased gamers who are engaged with games on a serious level. It’s unlikely that anything will bump down the use of in-app advertising, but micro-transactions are also going to continue to be popular in the gaming world.

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