Paradox is thinking about new ways to monetize games
Shams Jorjani, vice president of business development at Paradox Interactive, said that the publishing house will look for new ways to get revenue from titles in addition to the usual business model for selling add-ons.
Paradox earns most of the money on paid extensions for its titles. An example is the global strategy Crusader Kings 2, which was released in 2012. For 6 years, the company has released over 60 DLC for her for a total of $ 300. Paradox also sells add-ons for Stellaris, Cities: Skylines, Hearts of Iron IV and Europa Universalis IV.
This strategy works well in relation to the genre of global strategies in which the publishing house specializes. Due to the sale of add—ons in the 1st quarter of 2018, the company’s revenue increased by 120% and profit by 270% compared to last year.
But this method has disadvantages. Overloading with paid DLC pushes away new players who are not willing to pay the full amount for all existing content. In addition, new trends in the monetization of gaming products are gaining more and more strength in the industry.
“The premium games segment is gradually shrinking. This does not mean that it is impossible to grow inside it — we could develop in this way for many more years. But trends in the industry are moving in the direction of fritupley.
We know that our publisher’s games fit very well into this model so far, so now Paradox is looking for a transition point from premium and paid add—ons to new ways to monetize games,” said Shams Yorzhani.
Paradox intends to expand its portfolio and, along with global strategies, continue to publish titles of other genres: role-playing games, management simulators and others.
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