Gaming Industry: Peculiarities of Business in the Virtual World

The development of computer games is one of the most promising and profitable branches of the IT sphere today. However, like any other business, it has its peculiarities.

Competitiveness of the Market

One of the main features of the business of developing computer games is high competitiveness. Creating video games today is an art and a science that requires serious expenditures in both time and financial resources. The competition in the video game industry market is getting tougher and tougher.

Big companies like EA, Ubisoft, and Activision Blizzard are releasing big projects with multimillion budgets. It is difficult, but possible, for small studios to compete with them. It is important to know that the key success factor is the originality and quality of the game product. However, uniqueness can be risky – leading to great success or failure.

The Unpredictability of the Market

Another feature is the need for more accurate predictions. It will be a year or two, or five years before the market will be determined. Trends can change quickly, and studios that have yet to adapt will fail. The business of game development comes with high risks and unpredictable results. Even if you have created a great product, there is a chance that it will not sell and make a profit.

Attracting Investment

Like any other business, video game development requires financial investment. But attracting investment into the gaming industry is a complicated process. Investors are usually interested in investing in promising and profitable projects with a good chance of success.


However, the share of unsuccessful developments is rather high, which may cause fears among potential investors. Attracting investment can happen in several ways. Large game companies typically finance their projects from internal resources, and small studios starting in the game industry can seek money from venture capital funds or private investors.

It is important to understand that attracting investment is not just about obtaining financial resources but also about responsibility to investors. Studios must demonstrate their success to attract new investors and retain existing ones.

Monetization of Game Products

Another important aspect of the game development business is monetization – generating revenue from gaming products. There are several models of monetization used in the game industry.

One of the most common is selling a game, whether a roleplaying game, action, strategy, or another genre, for a fixed price. The user buys the product once and gets full access to its features and content. However, this model does not guarantee a permanent income, as users can play for months or years and not buy additional content.

Another popular monetization model in MMO RPGs is free-to-play. Users can download and play the game for free, but they have to pay to access certain features or content. This monetization model allows for steady income from users willing to pay for additional content.

The game industry also uses other monetization models: subscriptions, advertising, microtransactions, etc. Each has its advantages and disadvantages, and the choice of a particular model depends on many factors, including the type of game, the target audience, the business model, etc.

It is important to remember that monetization must be balanced and not negatively affect gameplay. Gamers should feel that additional content adds something new and interesting and not just serves as a way to extract more money from them.