Research Summary
The article discusses the growth of mobile gaming and the free-to-play (F2P) business model. It highlights how F2P games, which focus on onboarding first and monetization later via in-app purchases (IAPs), have led the industry to new revenue highs. The article uses the example of Elden Ring, a premium priced game, and Genshin Impact, a F2P game, to illustrate the revenue difference. Genshin Impact made roughly $1.8B in 2022, more than double the revenue of Elden Ring. The article also mentions that the number of F2P games released each year is increasing.
Actionable Insights
- Consider the potential of F2P games: The success of F2P games like Genshin Impact indicates a lucrative market for developers and investors.
- Focus on in-app purchases: The F2P model’s success is largely due to in-app purchases. Developers should focus on creating engaging IAPs to maximize revenue.
- Monitor the release of F2P games: With the increasing number of F2P games being released each year, there are ample opportunities for investment and development in this space.
