Report: Transitioning to Free-to-Play will Increase Revenue

Sept. 26, 2013

As online gaming continues to migrate to mobile devices, “free-to-play” (F2P) is becoming the dominant monetization model, reaching $1.5 billion in revenue, according to a new report. “Making the Switch,” from Dutch PSP GlobalCollect and SuperData Research, details the growth in players and revenue over the past five years and advises game developers and publishers on how to transition from a subscription-based pay-to-play (P2P) model to F2P.

As the name suggests, F2P games have a basic level that’s free for users. The games then offer in-game enhancements, advanced functionality or related products that users must pay for. Total spending on F2P games has grown more than 500 percent in the past five years. Revenue and audience have both surpassed P2P.

“With the games landscape shifting considerably over the last five years, MMO gaming companies are facing big decisions when it comes to their choice of monetization models,” said Nathan Salisbury, GlobalCollect’s global market director of video gaming. “MMO gaming companies are a major contributor of transactions on the GlobalCollect payment platform, so we have the payments data and knowledge necessary to assist companies in their transition to free-to-play or hybrid models.”