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GaaS: How Do Games Make Money With This?

AlBQuirkyAlBQuirky Member EpicPosts: 5,339
Games as a service: GaaS.

I'm not up on the latest and don't care to be, but I keep wondering how games make money here. You pay a set fee each month to play whatever games are offered. What percentage of that monthly fee goes to the game makers? Any? Are they paid a set sum to be included in the service by that service?

I'm having trouble seeing how game makers find this distribution profitable :)

- Al

Personally the only modern MMORPG trend that annoys me is the idea that MMOs need to be designed in a way to attract people who don't actually like MMOs. Which to me makes about as much sense as someone trying to figure out a way to get vegetarians to eat at their steakhouse.
- FARGIN_WAR

Gdemami

Comments

  • ScotScot Member LegendaryPosts: 11,608
    edited June 26
    As far as I understand GaaS it is all about monetarisation, not a subscription. That's why I see it as a development of the cash shop, of course a subscription could be part of a GaaS just like a "Gold Membership" can be part of a F2P MMO with a cash shop. Today's cash shops have changed MMOs into MALLs, they will sell you everything and anything, it is a shopping experience not a gaming experience.
    AlBQuirky

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  • TorvalTorval Member LegendaryPosts: 19,500
    MMOs are Games as a Service. You pay whatever they want and play whatever they give you. It doesn't have to be a sub. It could be that or any number of other methods.

    That's different than gaming services providing games as a service. Confusing I know but the two are related. It's the scope that's different. For MMOs and online mulitplayer games you pay for just one game. For services like EA All Access, Xbox Live, PS+, PSNow, Twitch Prime, Steam, and Stadia they are providing entire games and communities as a service. They sell access to the games or service through subs, microtransactions, and box fees depending on the service.

    The first GaaS method is game specific. The second is just a set of games. That can happen with MMOs too. Think of SoE All Access where one sub got you access to all their games. It was one of the original multigame services. On the other hand, each one of their games was its own service. You could buy just that service.

    They're all services, meaning they're tied to an account and can be shut down and taken away or revoked at any time.
    KyleranAlBQuirkyScotklash2def
    take back the hobby: https://www.reddit.com/r/patientgamers/

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  • FlyByKnightFlyByKnight Member EpicPosts: 3,879
    edited June 26
    I'd suspect that for games that are included as part of a service, licensing deals are done for a negotiated cost over a certain number of years. The reason it's potentially profitable is because it's not a primary revenue stream. Developers can distribute their content in multiple ways simultaneously.

    In the instances of exclusivity, it's a whole different ballpark of value + other monetary caveats (production, marketing, etc).

    Not in the gaming space but as an example; The Friends TV show was licensed by Netflix originally at 30mil. To continue that license for another year it set Netflix back 100mil. If Netflix tried to do an exclusivity deal for friends, that number would probably shoot up to triple that (or more).
    TorvalAlBQuirky
    Raging Demons for all flowchart "Kens". This is a metaphor.
  • alkarionlogalkarionlog Member RarePosts: 2,640
    AlBQuirky said:
    Games as a service: GaaS.

    I'm not up on the latest and don't care to be, but I keep wondering how games make money here. You pay a set fee each month to play whatever games are offered. What percentage of that monthly fee goes to the game makers? Any? Are they paid a set sum to be included in the service by that service?

    I'm having trouble seeing how game makers find this distribution profitable :)
    with lots and lots of idiots who have more money then sense
    FlyByKnight
    FOR HONOR, FOR FREEDOM.... and for some money.
  • AlBQuirkyAlBQuirky Member EpicPosts: 5,339
    Lots of interesting answers. Thanks :)

    If I could narrow it down and look at a GaaS like Stadia... As far as I know (which is not much), they are not "selling" games like some of the other services are. So what is the incentive for game makers to "allow" their games on that service? Is this where the possible "licensing fees" may be used?

    Maybe I'm just totally misunderstanding the concept, but it seems to be a way for companies to take the games out of the player's hands and have more control over how they're used. I can see EA and other publisher specific GaaS forms not having this trouble as the money still gets to the overall company, to be divided as they see fit, if at all.

    XBox Live (on my 360) back in the day is when I started wondering about this concept. I know the game makers are making money, otherwise they'd not be jumping on board :)

    Thanks for the insights :)

    - Al

    Personally the only modern MMORPG trend that annoys me is the idea that MMOs need to be designed in a way to attract people who don't actually like MMOs. Which to me makes about as much sense as someone trying to figure out a way to get vegetarians to eat at their steakhouse.
    - FARGIN_WAR

  • IselinIselin Member LegendaryPosts: 12,761
    As @Torval explained it can mean different things in different situations. However the term itself is a relatively recent addition to the video gaming lexicon and so is its usage when applied to games that used to be almost always sold as just pay once and play forever.

    MMORPGs have always been GaaS whether they used monthly subs or were F2P or any combinations of the two, and they are the revenue model prototype that is being used in other game genres today.

    They want you online where even the most benign and truly optional cash shops will still make additional income by virtue of just being there open for business, and they also want at least some places in the game where you can see and play with each other to use the universal "keeping up with the Jones" incentive for cosmetic item sales.

    When EA uses the term as a top-down directive to all their game studios what they mean is that any and all game projects and franchises that were once single player only must in the future be developed as online GaaS. They want to do this not to make the games better, although their marketing departments will go into overdrive to say that this is the reason, but simply because multiplayer with cash shop is where the big bucks are. So you end-up with games like Anthem and FO76 and the Anthem-like plans for future Dragon's Age games.

    It's this usage of GaaS to make everything under the sun an online multiplayer game that most gamers are referring to these days when you see the term used in a post.
    TorvalAlBQuirkyklash2def
    “Microtransactions? In a single player role-playing game? Are you nuts?” 
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  • vegetableoilvegetableoil Member UncommonPosts: 342
    on top of that surprise mechanic ;)
    AlBQuirky
  • VrikaVrika Member EpicPosts: 5,733
    For GaaS like Stadia, I'd guess the deal depends on the GaaS provider and developer: The company could be paying a flat license fee, or a fee that depends on how many people are actually playing that game.

    Many GaaS games also work like F2P games: The game isn't meant to generate profit, it's just there so that people would buy microtransactions and DLC.
    AlBQuirky
     
  • DerrosDerros Member UncommonPosts: 1,212
    edited August 10
    For stadia, its important to know that profit may not be the be all end all. Google is an advertising and data company and stadia would have the oportunity to collect a whole heck of alot more data to the company that they could sell to others, things about play/spending habbits in certain demographics which could drive profits in other areas of the company. Heck last I heard Youtube still operates at a loss.

    For GaaS, its all about keeping the player engaged with updates over time that the oportunity is always there for them to spend money buying microtransactions with no cap on the $ the player could be spending at any given time.
    AlBQuirky
  • KyleranKyleran Member LegendaryPosts: 33,542
    Stadia is a Game Service, more akin to cable TV service, not to be confused with Gaming as a Service which is applicable to a single title like GTA5 or any MMORPG.

    How do game studios make money in this model? Same way music artists are paid in some manner when their songs appear on Pandora, are played in a restaurant, or used in a TV commercial.

    There's an entire industry out there to make sure royalties are collected and paid to content creators.  TV shows and movies are marketed and sold to various networks, streaming and cable services etc on an annual basis. 

    I assume similar will occur in Game Services,  devs will be paid fees for letting their games be listed for sure. The real question is will they be permitted to sell services directly to the consumer, or will all sales go through the game service who will then take their cut, much like Epic or Steam.

    My guess is it will be the latter model, else why create Stadia in the first place?
    AlBQuirky

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  • AlBQuirkyAlBQuirky Member EpicPosts: 5,339
    Vrika said:
    For GaaS like Stadia, I'd guess the deal depends on the GaaS provider and developer: The company could be paying a flat license fee, or a fee that depends on how many people are actually playing that game.

    Many GaaS games also work like F2P games: The game isn't meant to generate profit, it's just there so that people would buy microtransactions and DLC.
    I hadn't even thought about cash shop money. Good point :)

    - Al

    Personally the only modern MMORPG trend that annoys me is the idea that MMOs need to be designed in a way to attract people who don't actually like MMOs. Which to me makes about as much sense as someone trying to figure out a way to get vegetarians to eat at their steakhouse.
    - FARGIN_WAR

  • AlBQuirkyAlBQuirky Member EpicPosts: 5,339
    Kyleran said:
    Stadia is a Game Service, more akin to cable TV service, not to be confused with Gaming as a Service which is applicable to a single title like GTA5 or any MMORPG.

    How do game studios make money in this model? Same way music artists are paid in some manner when their songs appear on Pandora, are played in a restaurant, or used in a TV commercial.

    There's an entire industry out there to make sure royalties are collected and paid to content creators.  TV shows and movies are marketed and sold to various networks, streaming and cable services etc on an annual basis. 

    I assume similar will occur in Game Services,  devs will be paid fees for letting their games be listed for sure. The real question is will they be permitted to sell services directly to the consumer, or will all sales go through the game service who will then take their cut, much like Epic or Steam.

    My guess is it will be the latter model, else why create Stadia in the first place?
    Thanks for that clarification, That's a good distinction ;)

    - Al

    Personally the only modern MMORPG trend that annoys me is the idea that MMOs need to be designed in a way to attract people who don't actually like MMOs. Which to me makes about as much sense as someone trying to figure out a way to get vegetarians to eat at their steakhouse.
    - FARGIN_WAR

  • OG_ZorvanOG_Zorvan Member EpicPosts: 1,816
    edited August 11
    All it amounts to is game companies no longer selling games, but licensing them for rental. Give it another couple years and you won't see games in any store, physical or digital, for sale.
    AlBQuirky


    MMORPG.COM took away my swinging cheerleader butt .gif.

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