GAV Industries - Business Models: Publisher Models and Freemium

PUBLISHER MODELS are companies that'll partner with the game to ensure a good release of the product so long as they acquire a share of the revenue at the end.

Strengths - Publishers are unbiased and are a good source of critique (granted they've worked on enough titles to understand what makes a good game). They'll help advertise the game in the industry and through similar game communities, your game may appease.

Weaknesses - Depending on the publisher, they're possibly taking a huge cut of the final take from the game's release which means less money made by you and less money going towards the next game.

Opportunities - The game has the potential to do better both in terms of quality and sales which means the possibility of developing your game into a franchise. Also seeing as your publisher is doing post-production jobs you'd be taking longer to do anyway means you can focus more time on the development of the game itself.

  

Threats - If the game financially flops, the publishers may react poorly to the lack of success by demanding the developers pay them what they would've earned from the game or face legal action in a court of law.

An example of this is how Platonic Games reached out to Team 17 to help advertise and publish their new platformer Yooka-Laylee.

A FREEMIUM title can be downloaded and accessed free of charge but the game itself will hinder and slow the player's progress overtime granted they don't make use of the game's microtransaction store.

Strengths - Because the game is free, the player spends no money experiencing the entry-level content and as a result, lots of people will do this because a free product is more accessible than a paid one. Also, the in-game microtransactions allow you to monetize the growing player base which, granted the game is addictive, can create a steady stream of revenue for your company.

Weaknesses - The practice of getting people hooked on your free game to the extent they're spending excess amounts of time and money on it is very manipulative and unethical. Game developers who develop using this model are usually shunned and have a worse reputation than a free-to-play or premium developer.

Opportunities - Granted the game becomes mainstream and has a lot of coverage in the media, microtransactions are going to earn your company a fortune!

Threats - There are so many developers making games for all modern consoles that use this business model and as a result, it's harder to get your game recognized and trending which means your game and the efforts behind it could go unrecognized entirely, causing your company to make a major loss. Also if your game is popular and becomes a reliable source of income, it'll stay this way so long as it's relevant which means once the game's community moves on, you'll stop earning money.

A good example of this publisher model is Fortnite which offers players the base game for free but any leveling progression, challenges or rewards are non-existent unless they purchase a glorified season pass which allows them to receive frequent rewards for playing.