Video Game Companies Turn to Subscription Models for Digital Content

MPP Global Posted by MPP Global on Wednesday, 28 August 2013

As the digital world becomes increasingly prominent, companies that may have operated solely in the physical environment are being forced to rethink their business models.

Making content available online is definitely the way forward but this means several plans will need to be analysed in order to effectively monetise the product or service.

Video game companies have been tussling with their digital business strategies for a long time and one monetisation method that has worked well is subscription.

Microsoft has devised a membership plan for much of its content and with the emergence of the firm’s new console, the Xbox One, coming later this year it has now outlined what people will get with their subscription.

An Xbox Live Gold subscription used to only be required for online gameplay and services such as Netflix or LoveFilm, but when the new system becomes available people will also need it to watch the NFL and use features such as in-game DVR, Skype and OneGuide, the latter of which is similar to a TV guide.

Some of the online services will be available to those who do not pay, but when people attempt to access something they have not subscribed to they will be prompted to pay a fee in order get through to the content they want.

Sony will use a similar method when it launches the PlayStation 4 around the same time. The company’s PlayStation Plus feature allows gamers to take their game online but it also gives many offers and incentives, such as free games or discounts, to those who do sign up.

Ending the subscription means access to these free titles is lost, until it is renewed.

Of course, video games themselves can now be purchased through virtual stores and companies need to make sure they have a sufficientonline payment solution for the transaction.

eCommerce is becoming increasingly important for businesses and not adopting the model will result in a loss in revenue as consumers move to a company that does.

MPP Globalwill be at Gamescom in Cologne on 22nd and 23rd August 2013.