How to increase revenue from a premium game?
It's commonly believed that the only way a developer of paid games can earn revenue from a project is by selling as many copies as possible. However, that's not the case. "Xsolla" identifies six additional practices that can increase revenue from a premium game.
1. Pre-orders
What is it?
The opportunity to purchase a game before it goes on sale is called a pre-order.
When should pre-orders be launched?
Pre-sales should be launched when internal testing of the project begins (before the game transitions to alpha). Simultaneously, it’s time to start promoting the game.
What is needed for a pre-order?
This involves significant work, including developing a marketing strategy, launching a website, setting up a payment system, and preparing a minimal number of promotional materials (text, video, screenshots, concept art).
Should indie developers do pre-orders?
Absolutely, yes. It allows developers to gauge demand for the game before its launch and to experiment with marketing and presentation.
In general, any activity should be created before the game’s release. If this isn’t done, no one will anticipate its launch, and the news of its release will not make any impression.
Is it worth launching pre-orders for a game that will have early access?
Yes. Some teams incentivize pre-orders by offering early access to the game. Receiving content earlier than other players is a significant incentive for some people to make a purchase. Moreover, it is a good way to get valuable feedback from the community during alpha testing.
However, it is crucial to be cautious here. If the developer presents a very raw version during early access, skeptical players might turn away from the project. Therefore, closed access is best included in expensive game packages, usually purchased by a loyal audience that values the developer.
Should there be a discount on the game at the pre-order stage?
Absolutely not.
Discounts should be offered only a significant time after the release. Offering a discount before release undermines pre-sales (better to offer limited items for a pre-order), at release a discount undermines main sales, and days/weeks after release, it harms the reputation and marketing of future projects.
What percentage of sales typically come from pre-orders?
This figure depends significantly on the project, but generally, it ranges around 20-30%.
2. Special Editions
What is it?
Premium games can be sold in various configurations. For example, digital versions can include a soundtrack with high-resolution wallpapers or provide a character with powerful, unique weapons in a more expensive package.
What types of editions are there?
Typically, two to four packages are offered for purchase. The gradation is usually as follows:
- Standard Edition;
- Deluxe Edition;
- Gold Edition;
- Ultimate Edition.
What should be included in different editions?
You shouldn't include DLCs or season passes. It's better to sell them separately.
Some teams offer additional non-game content. For example, a soundtrack, sketches, or a high-resolution world map.
However, a good solution is a set of unique in-game items for the edition. Character clothing, quests, portrait sets, virtual currency packs, or even transportation methods.
How do players feel about premium games having multiple editions?
Russian users are unlikely to agree to pay extra for a digital edition (although maybe it’s worth offering different content, and then conversion to expensive packs could be higher). But for the Western audience, buying a more expensive version of a game with additional content that cannot be obtained otherwise is an acceptable option.
3. Bundles
What is it?
A set of several games sold under a single price. The games can be from one developer/publisher or several.
Should a bundle be made at the time of release?
There are some conditions that need to be considered.
If, for example, the studio's previous game was popular, it makes sense to look at Activision's experience. At the launch of Call of Duty: Infinite Warfare, the publisher offered a free remaster of the first part, Modern Warfare, with the purchase of the game.
This was a great marketing move because:
a. It provided media with a great news hook (thus the launch of the new part received additional resonance);
b. The bundle was an excellent incentive to purchase the new game for those who had previously heard about the first part but had postponed buying it.
This scenario also works outside a series context. If the first game is unrelated to the second but was popular, it can also be offered for free in a bundle when the new release is launched.
But if the game is a debut for the studio, releasing it as part of a bundle with others isn't the best idea.
When to launch a bundle?
If you're going to make a partnership bundle (with external projects), it's better not to do it in the first year. By this time, the main sales tail will have dwindled, and cooperating with someone can temporarily renew interest in the product.
4. DLC
What is it?
DLC stands for downloadable content. It refers to additional downloadable content for a game. This includes both major updates, like story missions and modes, and minor ones—new skins, portraits, or items.
DLC is usually distributed on a paid basis, but some teams also provide free add-ons to keep the long-disengaged audience interested.
Should DLC be prepared before the game's release?
It depends on the availability of resources. Large companies, of course, prepare a release schedule for extensions before the game itself comes out.
However, if we are talking about an indie team, then in this case, it is better not to spend time planning and developing DLC before the game's release. In a situation with limited resources, this can affect the game's quality.
How to ensure that the presence of paid DLC does not upset players?
The release of DLC and its purchase must be justified to the player. Ideally, the player should be able to affirmatively answer questions such as:
— Does the DLC offer new valuable gameplay experience?
— Does the DLC have a significant amount of new quality content?
For example, players understand why they should buy the "Blood and Wine" expansion for "The Witcher." It is a large, new story campaign with a new location. However, in Crusader Kings II, players don’t understand why they are being sold heraldic shields and the ability to customize characters. The audience believes that such content should come with the game.
How much can you charge for DLC?
This depends on its size. For a large-scale addition, it is customary to charge no more than 50% of the game's cost at the time of release.
5. Season Pass
What is it?
A form of DLC monetization. It is a package of several add-ons, the purchase of which will cost the player less than buying each included add-on separately.
Typically, at the start of season pass sales, most of the add-ons within are still in development. Players receive them only over time.
How long is a Season Pass intended to last?
Usually, one season pass lasts for six months.
How many add-ons should a Season Pass include, and how often should they be released?
Season Passes are a story designed for large teams. Only they can prepare 2-3 significant DLCs a year and release small updates regularly.
So the answer to this question depends on the company's size and capabilities. Ubisoft usually includes two major DLCs in a season pass, releasing several content packs beforehand.
How much does a Season Pass typically cost?
Its cost usually amounts to 70-75% of the game's price at release.
6. Physical Merchandise
What is it?
Physical merchandise with game branding.
When should you consider selling merchandise?
It makes no sense to promote merchandise before the game's release because it’s uncertain whether the game will be successful. However, you can start at any time, even years after the release. The main thing is to understand if there is demand among players for memorabilia concerning your game. For example, items of a charismatic character (Witcher amulet) or symbols that characterize the game sell well.
If you still plan to sell physical goods concurrently with the game’s release, consider selling the rights to produce merchandise (for example, Ubisoft successfully sells rights for the Assassin's Creed series merchandise) or adding some sort of souvenir to the Deluxe edition pre-order, so by the game’s release, you can create the necessary batch of goods at once.
How can you determine if the merchandise will pay off?
Don’t position merchandise solely as an additional revenue stream from game fans: it can also help advertise the game at exhibitions. Moreover, since pricing is entirely up to the developer, you can determine the average cost of producing and delivering the product, add a percentage, and sell only on audience request—this way, the developer can recoup the cost of creating the merchandise. The key is to create truly unique or even collectible items, not just standard goods.
What types of merchandise sell best?
Souvenir goods and clothing (not just T-shirts and caps, but also backpacks, for example) sell best. However, you should understand that clothing with game logos is more likely to be bought in Western markets than in Russia because geek culture is only beginning to develop there. Accordingly, even if they’re eager, many simply won’t risk buying a T-shirt with the game’s logo.
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"Xsolla Store" supports each of the monetization methods described. This will save energy and resources for their implementation. Let’s remind you that Xsolla services operate on a revenue share model. For using any of the company’s tools, the developer pays 5% of sales made using Xsolla services.
