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The number of freemium or free-to-play games has dramatically increased over the past decade. In a highly competitive industry, gaming companies are utilising this innovative tool to grow their revenues and market share.
With no financial upfront cost, this strategy can potentially attract millions of players who may have previously baulked at paying for the title.
Once players are invested in the game, companies aim to generate sustained revenue through alternative monetisation methods, such as in-game purchases.
The Purpose of Freemium Games
Freemium games need to be entertaining and immersive in order to retain players and create income. However, beyond entertainment, they also serve a significant role as revenue generators and marketing tools.
- Player Acquisition: Free access to games attracts a wider audience. With more people playing the game, companies have more opportunities to create revenue.
- Income Generation: Game income is generated from in-game advertising and microtransactions. These include items such as loot boxes, downloadable content (DLC), or extras such as season passes.
- Data Collection: By tracking player behaviours such as playtime, preferences, and spending patterns, companies can optimise monetisation by tailoring offers and adapting the game to maximise revenues.
Of course, as anyone will tell you, there is no such thing as a free lunch. So, what exactly is a free game?
What is a Freemium Game?
Many of the world’s most popular games are now available for free. Titles that cost millions of pounds to design and create, and would once attract premium price tags, are now available for anyone to download and play. Some of the most popular free games include heavyweight titles such as:
- Apex Legends
- Rocket League
- Roblox
- Fortnite
- Genshin Impact
- League of Legends
- Call of Duty: Warzone
Freemium games are free to download and play; however, the game entices players to spend money once inside the game. Companies can generate income through in-game advertising, downloadable content, and much more.
Extra lives, virtual currency, character skins, ad-free gaming, or extended playing time are all available for a price.
Those who choose not to pay will still get game access but will often experience in-game ads, limited customisation options, and potentially face restricted access to certain content.
Premium games require players to pay upfront to purchase the game and enjoy full, unrestricted access to all the title’s content and features.
However, some premium games do also offer additional downloadable content, expansion packs, and microtransactions for an additional fee.
The Use of ‘Free’ as a Marketing Tool
The word ‘free’ is one of the most enticing words in the business world, and marketers are all too well aware of its power. It creates an impression of risk-free entertainment, encouraging players to give the game a chance.
As shown by Casino.org, the use of UK casino bonuses and promotions, such as matched deposits, no-deposit bonuses, and free spins, is another type of “free” gaming offer that is often used to encourage people to try playing casino games such as blackjack, poker, slots, and roulette.
This approach is particularly effective in the fiercely competitive mobile gaming sector, where consumers are faced with a crowded marketplace, all vying for their attention.
The Psychology Behind Freemium Games
One of the psychological impacts at play here is the idea that humans will instinctively value something more if they have invested time in it.
That means the more time they spend playing a title for free, the more likely they are to spend money enhancing their gaming performance and experience when the opportunity arises.
Many freemium games also offer players time-limited offers or exclusive items, which play on gamers’ fear of missing out. A title can also purposely design friction points inside the game -typically progressing from one level to another – that are designed to tempt players to purchase solutions.
Titles can also tap into the social side of gaming and create cosmetic enhancements to gameplay, such as customising character skins. This not only allows players to stand out, but also encourages others to spend money to follow suit.
Benefits for Consumers and Companies
Free-to-play games offer accessibility to titles that may previously have been out of reach to many due to purchase costs. In-game purchases are not compulsory, which means gamers can stick to their budgets, while regular updates and events keep the game fresh.
However, some people claim freemium games are manipulative and pressure players into spending, which raises ethical concerns about potentially exploitative practices.
For game companies, the freemium model allows their games to reach a much wider audience and therefore increases potential revenues. But maintaining a free game requires constant investment, which can be costly.
Ultimately, freemium games are a balancing act between overzealous monetisation that can erode player trust and a well-designed title that creates loyalty.