Game Developers Can Now Stop Sharing Their Profits With Publishers

Over the past decade, game developers have become accustomed to signing deals with publishers in order to present their product to an end consumer. Usually, publishers  take around 30% of the net profit, but sometimes the number is even higher, especially if the developers are inexperienced. And while ten years ago signing a contract was a key to the whole industry, today it’s not the case.

According to Newzoo, this year could be very unpleasant for the publishing companies as their primary role, closing the gap between the developer and the seller, has become obsolete due to the outbreak of digital stores. From now on, any amateur game developer can bring their game to the storefront and the cost of entry is zero.

However, top-notch publishers will still be able to find a place in this ever-shrinking market because there are still services that small development firms require. This could include taking on the role of investors or game promotion agencies, to name a few.

But at the end of the day, even these opportunities will fade away.

Marketing is now no longer a problem since game developers can start building awareness by themselves. What’s more, they don’t have to obtain a huge capital to their launch products because a free-to-play model can provide the initial funds as well as supporting the game along the way.

Last year’s review by Superdata confirms this shift in video gaming trends. Based on this study, 80% industry revenue as a whole comes from free-to-play products.

There are two principal ways of free-to-play game monetization: selling virtual assets or adding specialist content. The most skillful companies tend to mix them both but as a rule, they start with the first one because it continues to provide sustainable income for a long time.

The Power Behind the Virtual Assets

In-game items have become a real goldmine for the producers of CS:GO, Dota 2, and Fortnite. And while many may argue that their success is impossible to reflect on, recent research by Forbes shows that it is just a preview of what the future of virtual items will look like.

Of course, nobody says it is going to be easy and anyone can do it. There has to be  large teams of game designers working behind the scenes.

Another interesting insight we can get out of the Forbes’ article is that although you may not be an expert, you always can reach out to somebody more experienced,  and even get a hand in creating a sustainable economy of in-game items. Specifically, they point to DMarket, a team of professionals with over 10 years of experience in building and supplying virtual economies.

They provide game developers with a ready-made solution that helps to make a monetization system from scratch as well as a place to buy, sell, and exchange virtual assets from their games.

The company is going to participate in the upcoming D.I.C.E. Summit 2020 on February 11-13 in Las Vegas. So, don’t miss this chance to meet their executives in order to discover new monetization opportunities for your games and gain insights on the future of this multi-billion-dollar industry of digital goods.

Updated: July 11, 2020 — 4:28 pm