Games as a service

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Games as a Service ( GaaS ) describes a revenue model in which new game content is continuously provided in a video game, similar to software as a service , and thus the replay value and long-term motivation are to be increased. Games as a service are methods of monetizing video games either after they are first sold or supporting a free-to-play model. Games released under the GaaS model typically receive a long or indefinite stream of monetized new content over time to encourage players to keep paying to support the game. This often leads to games that work on a GaaS model being referred to as "living games" or "live games" because they are constantly changing with these updates.

History and forms

The idea of Games as a Service began with the launch of massively multiplayer online games (MMOGs or MMOs) such as World of Warcraft , in which the subscription model of the game ensured the developer and publisher continuous revenue from the creation of new content. A major influence on the use of GaaS was the expansion of mobile gaming , which often includes a social element, such as B. the competition with friends and with players who want to buy into GaaS in order to continue playing with friends. Chinese concern Tencent was one of the first to step in in 2007 and 2008, establishing several different ways to monetize its products as a service to Chinese gamers, and has since become the world's largest provider of video games by revenue.

Some examples of the forms of GaaS are:

Game subscriptions

Many massively multiplayer online games (MMOs) use monthly subscription models. The revenue from these subscriptions pay for the computer servers used to run the game, the people who manage and monitor the game on a daily basis, and the introduction of new content into the game. Several MMOs offer an initial trial period that allows players to try the game for a limited time or until their character reaches an experience limit after which they must pay to continue playing.

Subscription Services for Games

Subscription services such as Origin Access , Uplay + and Xbox Game Pass give subscribers full access to a large library of games offered digitally and without restrictions. The user must download these games to their local computer or console in order to play them. However, users must still remain subscribed to play these games; the games are protected by a digital rights management system that requires an active account. New games are usually added to the service and in some cases games may leave the service and subscribers will no longer be able to play that title. These services may provide the ability to purchase these titles and play them outside of the subscription service.

Cloud gaming

Services such as PlayStation Now , GeForce Now or Google Stadia allow players to play games that are run on remote servers on local devices, eliminating the need for special console hardware or high-performance PCs outside of the bandwidth required for internet connectivity. These otherwise work similarly to game services in that the library of available services can be added or removed over time, depending on the service.

Microtransactions

Microtransactions are inexpensive purchases compared to the cost of a full game or a large expansion pack that offers the buyer some form of additional content. The type of content can range from additional downloadable content, new maps and levels for multiplayer games, new items, weapons, vehicles, clothing or other equipment for the player's character, power-ups and temporary buffs , in-game currencies and items such as loot boxes that offer a random selection of items and rewards. Often this content is purely visual in order to avoid a pay to win and relate e.g. B. on the skins of the character or the objects or on emotes .

Players do not necessarily have to purchase these items with real money to acquire them. However, the design and financial approach of a game that aims to provide continuous service is aimed at ensuring that a small portion of the players buy this content right away rather than getting it through grind for a long time . These so-called "whales" bring sufficient income to support the further development of new content. This approach is typically used with free-to-play games such as B. Candy Crush and League of Legends are used to support their further development, but also in "full price" games such as Grand Theft Auto Online .

Season passes and downloadable content

Games with a Season Pass offer one or more major content updates or downloadable content (DLC) over the course of about a year or a so-called "season". Players must buy into a Season Pass to access this new content; the game will remain playable if players do not purchase the Season Pass and benefit from major game improvements, but will not be able to access new maps, weapons, quests, game modes, or other game elements without this content. Games like Destiny and Tom Clancy's Rainbow Six Siege use e.g. B. this season pass model. One of the first games to use a Season Pass was LA Noire by Rockstar Games from 2012.  Electronic Arts released the Season Pass for EA Sports in August 2011 . The Season Pass later became the standard for AAA online games. However, some publishers are releasing free DLC due to the negative press. Among other things, they are accused of cheating and manipulating customers with decoy offers in order to spend more money on things that the player would not actually have bought or do not know what is coming in the future.

Battle Pass

A related concept of the Season Pass is the Battle Pass , which offers new customization options and rewards that a player can earn by completing challenges in a game, but only after buying into the Battle Pass . The trend was mainly strengthened by the battle royale genre in 2017 as an alternative to the controversial loot boxes . The first known example of a Battle Pass is Dota 2 . Other well-known examples include:

Games can combine one or more of these forms. A common example are lifestyle games that provide daily changing content that often reward the player with an in-game currency to buy new items (which can otherwise only be bought with real money) and to add updates for the overall game. Examples of such lifestyle games are Destiny and many MMORPGs such as World of Warcraft.

Main reason for establishing the model

The main reason for the introduction of GaaS is the financial aspect, which gives a developer or publisher the possibility to get more money out of the players than with a single sale of a game version (also known as "games as a product"). While not all players are willing to spend extra money on new content, there may be enough demand from a small number of players to support the service model. GaaS continues to be a means by which games can improve their reputation with critics and gamers through continuous improvement over time, using the revenues from GaaS monetization to support further development and generate new sales of the game . Titles like Diablo III and Tom Clancy's Rainbow Six Siege are positive examples of games offered by GaaS , which were originally released with mediocre criticism, but which received significantly more positive feedback due to continuous service improvements. The manufacturer is thus paid by the players for the quality improvements in the poor quality games brought to the market early on.

While the Game as a Service model aims to increase revenue, the model also aimed to eliminate legal issues related to software licenses , specifically the concept of software ownership versus license. Video game case law remains unclear whether retail and physical game products qualify as goods or services. Treating them as goods gives buyers more rights, especially those related to the exhaustion rule , which allows them to resell or trade those games which can later affect sales proceeds to publishers. The industry broadly believes that physical games are a service that is enforced through end-user license agreements (EULA) to restrict post-sale activities, but these have generally been unenforceable as they affect and affect consumer rights Cause confusion in this area. Instead, by moving to games as a service , where a clear service is offered, publishers and developers can clearly establish their works as services rather than goods. This gives publishers more control over how the software is used and what actions users can take through an enforceable EULA, e.g. B. Preventing class actions .

GaaS aims to reduce software piracy . In addition, certain games can be hosted on a cloud server, eliminating the need for installation on players' computers and consoles.

Effects

Industry research firm Digital River estimated that by 2016, 25% of PC gaming revenue will come from one form or another of GaaS . The company argued that this is true of consumers who want more of games that would otherwise be offered at full price ($ 60 at the time of the report) or looking for discounts, which makes the market ripe for monetization after release . Several major publishers, including Square Enix , Ubisoft, and Electronic Arts, have identified GaaS as a major focus of their product lines in 2017, while others, such as Activision Blizzard and Take-Two Interactive , identified the importance of helping a game post-release to their financial bottom line recognize. GaaS is also seen as an evolving platform for indie video games that often have a broader potential installation base (across computers, consoles, and mobile devices) from which to generate service revenue.

A 2018 study by DFC Intelligence found that Electronic Arts' value has increased from $ 4 billion to $ 33 billion since 2012, while Activision Blizzard grew its value from $ 20 billion to $ 60 over the same period Billion US dollars, both increases in part due to the use of the GaaS model in their games catalog. Electronic Arts earned $ 2 billion from GaaS transactions in 2018.

literature

  • Oscar Clark: Games As A Service: How Free to Play Design Can Make Better Games, CRC Press, 2014, ISBN 9781317908876

Individual evidence

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  2. a b Atul Bagga: Emerging Trends In Games-as-a-Service. In: Game Developers Conference . October 13, 2011, accessed on July 29, 2019 .
  3. ^ Andreas Geyer: LA Noire: New content announced. In: Computer Picture Games . June 1, 2011, accessed July 30, 2019 .
  4. Electronic Arts: EA SPORTS Season Ticket Announces Today. August 1, 2011, accessed on July 29, 2019 .
  5. Dear everyone: it's time to stop buying season passes at launch. Retrieved July 29, 2019 (UK English).
  6. With the apparent death of season passes and $ 15 DLC, did we actually end up with a worse deal? In: VG247. July 10, 2017. Retrieved July 29, 2019 .
  7. Andrew Reiner: Season Passes Are Starting To Sound Like Scams. Retrieved July 29, 2019 .
  8. To Protect or Serve? - IGN. Retrieved July 29, 2019 .
  9. James Davenport: Battle passes are replacing loot boxes, but they're not necessarily a better deal. In: PC Gamer. July 5, 2018. Retrieved July 29, 2019 (American English).
  10. Clayton Ashley: What Fortnite's Battle Pass gets right. May 21, 2018. Retrieved July 29, 2019 .
  11. Eric Van Allen: How Exactly Does Dota 2 Come Up With Over $ 20 Million In Prizes For Its Biggest Event? Retrieved July 29, 2019 (American English).
  12. ^ Mike Williams: Rise of the Lifestyle Game: Gaming as Your Second Job. In: USgamer. August 1, 2014, accessed on July 29, 2019 .
  13. a b Jason Schreier: Top Video Game Companies Won't Stop Talking About 'Games As A Service'. In: Kotaku . May 30, 2017, accessed July 29, 2019 .
  14. a b Rick Lane: To Protect or Serve? In: IGN Entertainment . March 2, 2012, accessed July 29, 2019 .
  15. ^ Wei Cai, Min Chen, Victor CM Leung: Toward Gaming as a Service. In: IEEE INTERNET COMPUTING. July 1, 2014, accessed on July 29, 2019 .
  16. Sherif Saed: The games as a service trend has “tripled” the industry's value - report. In: VG247. October 11, 2017, accessed on July 29, 2019 .
  17. James Batchelor: Games as a Service: What does it mean for indies? In: MCV. March 3, 2014, accessed July 29, 2019 .
  18. James Batchelor: EA and Activision's $ 79bn games-as-a-service growth. In: GamesIndustry.biz. October 19, 2018, accessed on July 29, 2019 .