Free-to-Play Monetization is a method of maximizing digital supply for different levels of demand through micro-transactions. I won’t even mention that it is also freely open to anyone to download.
It has become an important business model to understand since it creates synergies with mass market and acts as a solution to previous prevalent game monetization model’s problems;
- Package game being pirated.
- Online subscription games not being able to maximize profit from its user pool.
Let’s compare supply & demand graphical representation between usual Previous model and Free-to-Play model.
As one can see, the model has shifted from aiming for one $60 package or $30 subscription fee to a free access game that has multiple products with well calculated price points that is targeted for specific players. This can maximize profit for players in range of yellow, who are willing to spend more and green, who are not willing to spend as much.