Distribution Model In The Gaming Industry: Focus On Partnership With The Player
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In the last decade, there are more and more people who are willing to pay both for the game when buying and for game content. The top purchases of players include cosmetic items to change the appearance of the character, improvements, additional content, etc. In this regard, the distribution models and the approach to the production of games are changing. In the article, Yevgeniy Neverov, CPO and co-founder of the international game development studio RedPad Games, shared his opinion on why the premium distribution model is gaining popularity again.
Just 5 years ago, free-to-play accounted for about 80% of developers' profits – such estimates were given by SuperData Research analysts. And indeed: free-to-play was used for multiplayer and social games, while premium was mainly used either for online games by major developers, including the most famous franchises, or for single-player games.
The F2P market has opened up opportunities for game developers of all sizes. In the past, premium online products were dominated by major studios with established franchises or platforms that could drive large user bases. F2P has enabled developers to build an audience and scale up from scratch. By removing upfront barriers with a free download, F2P allows games to gain traction through quality and word-of-mouth rather than branding alone. This has leveled the playing field, letting small and indie studios find success alongside industry giants. The F2P business model continues to evolve, empowering developers big and small to connect with players.
Paradoxes Of Perception
Players are now spoiled by the variety and availability of content, which leads to the fact that they are becoming more demanding. And surprisingly, it's a fact: within the premium model, players turned out to be more loyal to developers. They are willing to forgive a lot more than with the free usage of content. That is, by purchasing a game, the user admits that something may not work perfectly in it, something may be unfinished.
Of course, we are not talking about those cases when a completely raw product has entered the market, a semi-finished product in which almost everything does not work. But if there are unique and interesting strong mechanics, deep study of the plot, interesting game design, native solutions and, accordingly, great potentialь– in this case, the user is ready to compromise. In fact, the gamer perceives the product even in the premium distribution model as a kind of service that is constantly developing, being supplemented, improved, new chips appear, etc. And he is often ready to wait and to support the product.
In the case of a free-to-play game, the gamer's attitude is different. He did not pay for the game, but this becomes the reason why nothing keeps him - only a certain beyond level of quality in combination with unique solutions can keep him. As a result, attraction to such products on average remains at the same level, and retention has ceased to meet expectations. Players are not ready to forgive any shortcomings or wait for changes. In addition, it is not easy to motivate a player to make a payment in a free-to-play product (however, it has always been so), to do this, it is necessary not only to captivate him with the product, but also to ensure a very high level of quality and speed of delivery of new content. And for this you need funds, a sufficient amount of which free-to-play most often does not allow you to get. A vicious circle is formed: to improve quality, money is needed; to get money, high quality is needed. And this distribution model does not help to get out of this circle.
There is another curious paradox that affects the popularity of distribution models. Free-to-play games are now perceived as more expensive – this concerns spending not only money, but also time on games. Users have stopped believing that such games are free, so they choose the product very demanding.
The Opportunity To Be A Partner
It turns out that the premium model for the developer himself is also more secure than free-to-play. He receives guaranteed money for playing at the start and can safely invest it in the development of a product, team or individual direction, strengthen some aspects or change priorities in the product, investing a lot of money. In fact, the business model of the product becomes a more transparent design, in which it is easier to see priorities and cause-and-effect relationships
But it's not just about the economics of development: the loyalty of the player turns him into a partner who, unwittingly, helps to improve the product. Moreover, partnerships are as honest as possible: if the user does not like the game, he can make a refund. A player can vote with a dollar for some innovations, flaws that are important to him. The user can leave the free-to-play game for a large number of different reasons, including those not directly related to the product itself. In fact, the developer sees only really colossal successes or failures based on financial results.
All other oscillations can be explained by the seasonality of player activity, politics, sports, or something that cannot be analyzed at all. And premium game refunds are easier to analyze, since their deadlines are tight, the rules are clearly spelled out. So this indicator can and should be analyzed and appropriate conclusions drawn.
The core of any successful game is delivering an engaging, high-quality experience that keeps players coming back. More so than forum comments, real-time spending data offers developers invaluable player feedback.
With a premium title, player retention directly correlates to revenue. If players are enjoying the game, they’ll keep playing and paying. When satisfaction drops, so do purchases. This provides a transparent metric on player satisfaction and what additions resonate most.
Rather than relying on the most vocal minority, premium models allow developers to base decisions on data representing the silent majority. Payment metrics give tangible player feedback tied to in-game changes. Developers can test new content and features, then watch spending habits to see what resonates best with their overall player base.
The premium model incentivizes developers to keep improving the core game experience. Players reward quality through ongoing purchases and engagement. This user-driven iterative development helps premium titles stay relevant and satisfying long-term.
Not Against, But Together
With all of the above, the premium model does not exclude the use of those tools that are available in free-to-play. Players can also buy improvements, additional content, etc. That is, in fact, we see a kind of symbiosis, interpenetration of models, in which their mutual enrichment occurs.
Taking into account the fact that the premium model is beneficial for both players and developers, in our opinion, the future of the gaming industry lies in this direction - of course, until some new breakthrough happens, as it once was with the rise in popularity of the free-to-play model.
RedPad Games on Steam: https://store.steampowered.com/app/1459630/Dustland/
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