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Video Game Monetization Evolution and Models

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Historical Development: Game monetization traces back to real-life game tools sales before computers
Arcade games pioneered microtransactions in 1970s-80s
Computer technology enabled home gaming in 1980s
Online gaming emerged in late 1990s with subscription models
Major Monetization Models: Retail purchase remains traditional but declining due to digital distribution
Digital distribution allows online game downloads
Subscription model requires ongoing payments for game access
Microtransactions offer in-game content upgrades at low prices
Downloadable content expands base games with additional features
Premium currency enables microtransactions in free-to-play games
Loot boxes provide random in-game rewards
Battle passes offer tiered content access with microtransactions
Current Trends: Mobile games now account for 51% of industry
Games as a service model gaining popularity
Blockchain technology shows potential for monetization
Publishers increasingly focus on player retention metrics
Industry revenue expected to reach $138 billion in 2018
Legal and Ethical Considerations: Software licenses limit second-hand game sales
Monetization methods affect game design and player experience
Some monetization models criticized for excessive greed
Loot boxes face legal and regulatory challenges