GameTap and failing to find a new revenue stream

Word is spreading that GameTap, the once promising alternative distribution service, is pulling 97 titles from its free service. It’s not a surprising move as the struggling service has changed its distribution methods and altered strategies multiple times trying to find a sustainable business model. And what GameTap likely found is that the ad revenue from providing free games never approached anything close to sustainability.

It’s all a bit unfortunate since the videogame industry desperately needs more alternative forms of revenue outside of first sales and DLC. Much in the way Valve views piracy asa symptom of a problem rather than a problem itself, publishers have been trying to find ways for a while now to get new revenue from any possible source. Giving older games away for free and earning money through ads is just one out of many possible ideas how to monetize products that would otherwise be gathering dust.

And really, a more sustainable business model is beneficial for everyone involved. Steadier streams of revenue would promise more stability for publishers and developers who would then no longer need to worry about every last milestone payment and could pursue more original games. And then gamers would have greater variety and would increase the size of the gamer audience. Which would then bring in even more revenue. It’s a self-perpetuating cycle of goodness!

I mean, ideally that’s what would happen. So let’s keep on seeing how to make more money from games. Because in the end I would like to get paid too.


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *