"Gaming Methods"
In the first half of 2025, browser-based and social network video game platforms have reported an increase in royalties to developers. This growth is primarily attributed to stronger game sales and subscription service agreements, as well as the successful launch of new self-published multiplayer games.
One notable example of this trend is Remedy Entertainment, a Finnish video game developer. Their sales have seen a significant jump, thanks to popular titles like Control and Alan Wake 2, as well as initial accruals from subscription service agreements with Sony and Microsoft. Remedy's self-published multiplayer game, FBC: Firebreak, attracted over 1 million players within 10 days of launch, demonstrating the potential revenue boost that successful new releases can bring.
However, the integration of new games has slowed, leading companies to focus on maximizing existing game franchises and leveraging subscription models to maintain growth. To address this, companies are investing in subscription service agreements with major platforms like Sony and Microsoft, providing steady royalty streams from existing games. They are also focusing on sequels, remakes, and expansions of popular franchises, to sustain player engagement and royalties, without the risks tied to untested games.
Exploring multiplayer and social elements in new releases is another strategy being employed to increase player retention and engagement. This is illustrated by Remedy's multiplayer game launch.
Vimpelcom, also known as "Games from Beeline", has experienced a 62% year-on-year increase in total payments to developers. Despite not disclosing absolute values, this growth is a positive sign for the company. VK, another platform, has reported an increase in the total advertising revenue of the "VK Games" platform for the first half of the year.
Yandex, another major player in the market, has observed success in games transitioning from advertising models to hybrid monetization. The platform currently features 27,000 games from 6,000 developers, and the share of applications with in-game purchase capabilities has increased by 30% year-on-year. Games with well-designed in-game purchase mechanisms on the Yandex platform show stable revenue growth while maintaining high player engagement.
In July, Vimpelcom set a record for the total amount of deductions since the launch of the gaming section. Andrei Gubanov, director of the department for developing loyalty and gaming solutions at "Beeline", believes that thematic gamifications complement the loyalty program. Interaction with Vimpelcom's products and services is encouraged by these gamifications.
Rostelecom has also entered the video game market with its own store. The conversion rate of paying clients on these platforms has increased by 3 percentage points, to 9%. Yandex Games is significant in the overall advertising inventory of Yandex, competing for second place after search in terms of ad impressions.
In conclusion, this shift from relying on frequent new game launches towards consolidating and monetizing existing intellectual properties and subscription relationships is a strategic move to sustain revenue growth despite slower uptake of new game integrations on browser-based and social platforms.
- The growth in royalties for developers in the first half of 2025 is evident not only in the video game sector, but also in the personal-finance section, as platforms like Vimpelcom have experienced a 62% year-on-year increase in total payments to developers.
- As companies focus on maximizing existing game franchises to maintain growth, they are also leveraging technology to introduce in-game purchase capabilities, a strategy that has led to a 30% year-on-year increase in the share of applications with such mechanisms on Yandex, resulting in stable revenue growth and high player engagement.
- In addition to traditional business models, social-media platforms like VK have seen an increase in their total advertising revenue from gaming platforms, further demonstrating the potential for growth in this area.
- As the video game market becomes increasingly competitive, entertainment brands are exploring ways to engage players beyond the game itself, such as thematic gamifications, which complement loyalty programs and encourage interaction with associated products and services, as seen in Vimpelcom's gaming section.
