UK Marketing Game Marketing Strategies: Everything You Should Know about Games as a Service (GaaS)

The gaming industry is witnessing a transformative shift with top-tier companies like Blizzard, Epic Games, and Riot Games leading the charge towards the Games-as-a-Service (GaaS) model. Popular titles such as Blizzard's Overwatch, Epic Games' Fortnite, and Riot Games' League of Legends exemplify this trend.

This approach allows developers not only to release games but also to nurture them through continuous updates and seasonal content. This strategy ensures long-term engagement and revenue generation far beyond the initial sale.

You'll dive into the following topics:

• What is Games as a Service (GaaS)?

• Why Should Mobile Game Developers Understand GaaS?

• The Impacts of GaaS in Game Industry

• 5 Common Methods of GaaS Monetization

What is Games as a Service (GaaS)?

Games as a Service refers to a gaming model where the revenue is generated over time, offering a continuous stream of content and experiences to keep players engaged.

Unlike traditional games, which are often sold as complete packages, GaaS treats games more like a service, with ongoing updates, features, and community support.

 Learn More ➔   ASO Glossary: Games-as-a-Service (GaaS)

The most common GaaS refers to games providing free content for users to experience the gameplay and fundamental mechanics while obtaining revenue from subscriptions or in-game items.

Seasonal exclusive content from subscriptions (one typical example is season passes) can generate continuous revenue for game developers compared with the traditional Pay-to-Play model.

In contrast, the traditional Pay-to-Play model restricts continuous revenue generation post-purchase, limiting earnings mainly to cosmetic items—those that do not impact gameplay but enhance aesthetics.

Excessive reliance on in-game stores can lead to player dissatisfaction: Players often express lower buying intention when too many or too frequently additional purchasing items come out.

In this context, developers not only face challenges in generating revenue but also risk losing their player base.

>>> Genshin Impact Case Study: How Games as a Service (GaaS) Model Improve User Retention?



Essentially, GaaS excels at long-term monetization by leveraging new seasonal updates continually.

Distributing content seasonally aids in maintaining user retention metrics. If players disengage for an extended period, fresh updates serve as an incentive for them to return.

The primary limitations here are only the creativity of developers and their ability to maintain a consistent release schedule because player engagement hinges significantly on the anticipation of regular content updates.

Why Should Mobile Game Developers Understand GaaS?

GaaS (Games as a Service) bridges the gap between customers and game developers. Players are aware that a new season will arrive and that their adventure will continue, whereas game developers are more secure and have more opportunities for long-term planning.

According to market research, the GaaS strategy lowers the cost of acquiring new customers and retains users better than pay-to-play games. This experience, however, is related to console and PC games. What about the mobile sector? It's complicated, to say the least.

In addition to paid gaming apps, the App Store has a comprehensive Arcade subscription, and Google Play has Google Play Pass.

The free-to-play model with in-game stores has long been shown to lag behind pay-to-play games, but we can now say that the latter is evolving: GaaS can be thought of as a new stage of it.


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The Impacts of GaaS in Game Industry

1. Adaptative Budget Planning & Content Strategy

GaaS transforms traditional game development by adopting a continuous revenue model, where games receive ongoing monetized content updates.

This model facilitates innovative budget planning and a deeper understanding of audiences:

Each project under GaaS can be seen as a testing ground for refining successful mechanics through trial and error, with developers controlling the release frequency of paid updates or seasons.

2. Player Acquisition & Retention

Player Acquisition

The free-to-play aspect of many GaaS models lowers barriers for entry, allowing more users to access the game without upfront costs.

This inclusivity broadens the game's audience and potential market reach, making it accessible across various demographics and enhancing its global appeal.

Player Retention

By regularly introducing fresh content and updates, GaaS keeps the player base active and invested in the game for a longer period compared to traditional single-purchase games.

Retention rates are higher in GaaS-based projects because they offer continuous engagement. With the advancements in cloud gaming, these games can now be accessed almost anywhere and on any device, thereby enhancing player gaming duration and stickiness.

This approach helps maintain an active community that contributes to steady revenue streams from either periodic subscriptions or microtransactions.

3. Community Building Through Regular Updates

Continuous updates provide regular opportunities for community engagement through events, challenges, and social features integrated into the game environment.

This ongoing addition of content cultivates a vibrant community where players connect deeply not only through shared gameplay but also by participating together in the evolving narrative of the game.

GaaS projects do not really aim for an endpoint adventure in terms of content consumption. Such games are not story-driven; instead, they emphasize replayability and procedural rhetoric. A similar situation can be found in the market for TV streaming services.

Today's gaming industry is shifting away from franchises and toward series.



>>> Mobile Game Promotion Solutions

5 Common Methods of GaaS Monetization

1. New content

Players are often willing to pay for new and high-quality content. Regular updates that introduce fresh maps, weapons, skins, and other in-game assets not only enhance the gaming experience but also create compelling reasons for players to make purchases.

Game events like holidays or game anniversaries also play a crucial role in monetization strategy. 

These occasions feature limited-time items and activities which significantly boost player engagement and spending enthusiasm. Event-themed releases provide unique opportunities for players to acquire exclusive content available only during these periods.

Event-themed releases provide unique opportunities for players to acquire exclusive content available only during these periods.

Notes: Don't forget to update your game metadata (like icon and screenshots) during event period.



By strategically timing these updates and focusing on quality, developers ensure that both the appeal of their games remains high and that revenue streams continue to grow.

This approach has proven effective in keeping the community active and financially supportive of the ongoing development.

2. Seasonal In-game Currencies (Event Currencies)

Seasonal in-game currencies, often referred to as event currencies, are a dynamic monetization strategy used in Games-as-a-Service (GaaS) models. These special currencies are introduced for a limited time during specific events or seasons within the game.

How It Works:

During seasonal events such as holiday celebrations, festivals, or themed game updates, developers introduce a unique currency that players can earn and spend exclusively during the event period.

This currency is typically used to purchase event-specific items like costumes, weapons, skins, power-ups, and other exclusive content that cannot be bought with the regular in-game currency.

Benefits of Event Currencies:

1. Increased Player Engagement: The temporary nature of these currencies creates a sense of urgency among players to participate in the event before it ends.

2. Enhanced Game Experience: By offering new and unique items that can only be purchased using the event currency, players experience fresh gameplay elements that keep the game exciting.

3. Encourages Transactions: Players who might not usually spend real money may feel more inclined to purchase when they see exclusive content available for a limited time.

4. Promotes Return Visits: Knowing that different events offer distinct currencies and rewards encourages players to return regularly to see what's new.

Overall, seasonal in-game currencies serve as an effective tool for boosting both engagement and revenue by leveraging player interest in obtaining exclusive content through active participation in special game events.

3. Game bundles

Game bundles are collections of several games packaged together, often offered at a discounted rate. This monetization strategy is particularly prevalent in console and PC gaming, where digital stores or platforms have the flexibility to bundle multiple products.

How It Works:

In console and PC gaming environments, distributors or developers can create packages that include various games from the same series, genre, or even different titles that share thematic similarities.

These bundles are then sold at a price lower than the total cost of purchasing each game individually, making them an attractive offer for gamers looking to expand their collection.

Benefits of Game Bundles:

1. Increased Sales Volume: By offering multiple games at a reduced price, developers and stores can boost sales volumes while providing value to customers.

2. Cross-Promotion: Bundles help introduce players to new games or series they might not have considered purchasing separately.

3. Customer Acquisition: Attractive bundle deals can draw in new customers who see the value in getting more content for less money.

For mobile gaming, although traditional game bundling is less common due to platform characteristics, developers often use similar strategies within their ecosystems.

For example, after completing one game or campaign, players may be prompted with messages like "Have you finished this campaign? We have more adventures in store!" encouraging them to purchase additional games or expansions by the same developer directly through in-game interfaces.

Overall, game bundles serve as an effective tool for increasing revenue streams and enhancing player engagement across different gaming platforms by leveraging bundled discounts and promotional tactics.

4. Apps for gaming platforms

Some gaming platforms provide a large number of games that users can access after downloading an app. Some of these platforms allow users to earn money while playing, which is an intriguing new trend in the gaming community.

>>> Play-To-Earn Game: Everything You Need to Know About

5. In-game Ads

With the industry's current intense and rapid development, games are becoming a more appealing platform for advertising.

In-game advertisements enable game developers to diversify their revenue streams beyond the Games as a Service model.

Advertisements today are not always annoying banners; on the contrary, advertisers are attempting to provide visually appealing and memorable content, which is sometimes even styled after the game in question. One of the most common ad formats is video.

>>> How to monetize your game in mobile app business?

Conclusion

With the rise of GaaS, the gaming industry's approach to content creation and distribution has shifted. In order to achieve a higher retention rate, the mobile gaming market has had a significant impact on the PC and console gaming markets, forcing them to adapt and shift from increased private copy sales to ongoing revenue from a single product.

GaaS is so successful and promising that it already serves as a sandbox for new ways of interacting with players, which would be financially advantageous and beneficial to both users and developers.

The GaaS philosophy is to make games more accessible to users while also making developers more profitable.