Monetization models in the video game industry

Abstract

The video game industry has grown into a leading sector of the global entertainment economy, generating over $455 billion annually and attracting a diverse player base of more than 3.42 billion individuals. This thesis explores the monetization strategies used by gaming companies to balance revenue generation with player satisfaction. Focusing on key models such as Pay-to-Play (P2P), Free-to-Play (F2P), Subscription, In-Game Advertising, and Sponsorships, the study examines how these approaches cater to varying player preferences and sustain financial success in a competitive market. By analysing case studies and existing practices, this research provides insights into the design and implementation of monetization frameworks that enhance engagement, encourage retention, and drive profitability. The findings offer a comprehensive understanding of the business strategies shaping the gaming industry's future while highlighting the trade-offs between monetization and user experience.