Once you pay the full price for a PREMIUM game, that game, and its contents belong to the consumer without any inconveniences or fees. In some cases, developers package their game with multiple editions that included bonus content for an added price, but this is more of a loyalty scheme. Any microtransactions present in a premium title a usually optional and are used solely to sell cosmetics and vanity for your character.
Strengths - Because you're selling a product with a lot of content, you can charge a higher price which means more money earnt depending on how well the game sells. Pricing your game higher also means you'd need to sell as many games to break even and start earning more than you spent on development.
Weaknesses - Because the standard for premium games is so high, they cost significantly more time and money to develop which can all the more devastating if the game's a financial flop on release.
Opportunities - If you had plans to turn this release into a franchise and it does well, you'll have developed some brand loyalty with fans who'll most likely buy the next title released simply because they'll expect it to be the same as the last.
Threats - Overtime, the price of premium titles eventually go down the appease those who most likely couldn't afford the game on release. This can make games seem dated and drastically hurt their sales which eventually hurts the developers.
REVENUE SHARING is when revenue from the product is shared between the employees and shareholders. This also cover third parties that usually aren't affiliated with the main company paying for covering or making something in relation to their product.
Strengths - Because you're paying your employees more, their work ethic and morale significantly improve.
Weaknesses - If a worker with a role that could affect the influx of revenue does a poor job and the company makes less money as a result.
Opportunities - Employees making more money that did a good job on the previous product have a higher chance of staying to support and develop the next, upholding the quality of the last.
Threats - Because revenue is being taken from the third party, it hurts their business and, granted they're vocal about how x company is taking money from them, hurts the company taking the revenue's reputation.
Strengths - Because you're selling a product with a lot of content, you can charge a higher price which means more money earnt depending on how well the game sells. Pricing your game higher also means you'd need to sell as many games to break even and start earning more than you spent on development.
Weaknesses - Because the standard for premium games is so high, they cost significantly more time and money to develop which can all the more devastating if the game's a financial flop on release.
Opportunities - If you had plans to turn this release into a franchise and it does well, you'll have developed some brand loyalty with fans who'll most likely buy the next title released simply because they'll expect it to be the same as the last.
Threats - Overtime, the price of premium titles eventually go down the appease those who most likely couldn't afford the game on release. This can make games seem dated and drastically hurt their sales which eventually hurts the developers.
REVENUE SHARING is when revenue from the product is shared between the employees and shareholders. This also cover third parties that usually aren't affiliated with the main company paying for covering or making something in relation to their product.
Strengths - Because you're paying your employees more, their work ethic and morale significantly improve.
Weaknesses - If a worker with a role that could affect the influx of revenue does a poor job and the company makes less money as a result.
Opportunities - Employees making more money that did a good job on the previous product have a higher chance of staying to support and develop the next, upholding the quality of the last.
Threats - Because revenue is being taken from the third party, it hurts their business and, granted they're vocal about how x company is taking money from them, hurts the company taking the revenue's reputation.
GAV Industries - Business Models: Premium and Revenue Sharing
![GAV Industries - Business Models: Premium and Revenue Sharing]()
Reviewed by Ben Roughton
on
June 27, 2018
Rating:
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