Video game

Understanding Video Game Sales

The video game industry is decades old. The first video game was created in 1958, and Pong, the first one
commercially successful game, released in 1972. However, it was not until recently that video games became popular.
widespread acceptance as a serious form of entertainment. As video games increasingly permeate everyday life, it’s worth taking the time to understand the sales and industry of video games.

Sales channels

In some ways, video games follow the models of other mainstream software. There are two main
distribution channels: digital stores and retail stores. The latter was once the preferred option and involved
sales of physical media such as CD, DVD and Blu-Ray. The first is more and more dominant. The
are digital distribution platforms on all video game consoles, PCs and mobile devices. These platforms
usually take a share of each sale in exchange for facilitating that sale.

Licence

Video game publishers have a few different models for licensing their software. Like other consumers
software, it is generally sold / provided to the user under the terms of an end user license agreement. Game
licenses can be sold at a flat rate to customers. Some licenses are provided free of charge but supported by
either a freemium or in-app transaction model (microtransactions can also be used in games with
licenses). Sometimes games have subscription models, especially those that are exclusively online.
However, this is becoming less and less common.

Marketing

The process of selling video games is generally an attraction strategy. Publishers advertise directly to
consumers, who then encourage retailers to stock games according to their demand. With digital channels,
this is questionable as the game simply needs to be listed in a specific store, which usually only costs one
nominal fees.

Therefore, business prospecting and professional sales are minimal. Any prospecting that occurs is usually focused on delivering the games to major retailers who can dramatically improve sales by stocking the product.

There are a wide variety of marketing strategies used in the sale of video games. Traditional ads like TV spots and print ads tend to be limited to the higher budget versions. Mobile ads
are essential for phone and tablet games. For PC and console games,
announcements, events, trailers and social media play a vital marketing role. In addition, reviews
and “Let’s play” videos are invaluable for providing a third-party perspective.

The market can be very price sensitive. Thus, sales promotions can help businesses increase the
sales of older titles. In addition, it is essential to have a well-developed pricing strategy.

Positioning

The video game market is becoming more and more diversified. Where it was once associated primarily with
young men, there are now substantial market segments of older players and women. Moreover, there
are more than ever games intended for very young players (or, more exactly, their parents). This means
that finding the right positioning is essential to maximize sales.

Business sales

Although most games are consumer products, several games are intended for
business-to-business and business-to-government channels. These games, which can sometimes be
closer to simulations, are used for training and education.

It is also a significant market, although overshadowed by the huge market for mainstream games.
Not surprisingly, this segment’s sales processes follow a more traditional business software model.
There is a lot of seller involvement, and the marketing is a bit more conventional (less focused on the pull
and a reduced emphasis on hype).

With the right strategy, your video game business can potentially enjoy healthy sales in this segment. He is
also a good area for custom software development companies. It is a little different from the models explored above because it is a service oriented model. However, meeting the unique training needs
from various organizations may be a good approach.

Learn more

Find out more about the video game industry and its sales. Although there are parallels between
video games and other types of software, they follow a somewhat unique set of rules. It is therefore
understanding the unique requirements to be successful.

What do you think of this article? Do you have a better understanding of what’s going on in video game sales? Let us know on social media using the buttons below.

Last updated September 27, 2021.


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