A particular business model seems to be taking over the gaming industry, having already tripled the total market value of the industry in recent years. This model creatively imagines games not as products that you buy once once, but services that you pay for over time.
GaaS is the name of this business model, and it shows no signs of disappearing anytime soon. But what is GaaS? And how has it impacted gaming, for developers and gamers alike? In this article, we’ll explain everything you need to know about Games as a Service…
What Is GaaS?
GaaS is an acronym used in gaming that stands for “Games as a Service”. Games as a Service is a business model used for monetizing video games beyond their point-of-sale. The GaaS model typically involves subscription fees or in-game purchases that players pay for over time in exchange for continuous updates or exclusive content.
The Rise of GaaS
After the era of arcades, video games became single-sale products that were bought to be played at home on consoles or computers. This business model regarded video games as single-sale products like any other. Once you bought a game, you owned it forever and would face no additional costs to playing that game.
Even after digital distribution began, video games were initially viewed as single-sale products. Digital storefronts would sell digital copies of games just like brick-and-mortar stores would. It wasn’t until a few massively multiplayer online games were released that GaaS became a recognizable way to pay for games in the digital era.
One of these massively multiplayer games is World of Warcraft, released in 2004, which requires a subscription fee in order to play. This recurring subscription fee gives developers money each month to use on server maintenance and updates. In addition, World of Warcraft is buy-to-play, meaning it still costs money to purchase a copy, on top of the monthly subscription fee.
Another massively multiplayer game that solidified GaaS is Team Fortress 2, which released in 2007. To combat a dwindling player count, in 2011 Team Fortress went free-to-play, making it completely free to download a copy of the game. Team Fortress 2 added in-game purchases like cosmetics and loot crates to monetize the game under the free-to-play model.
Many other massively multiplayer games would eventually follow suit, using not only subscription fees and loot-boxes to make money, but also other things like season passes or downloadable content. Major titles that use the GaaS model today include Fortnite, Rocket League, Destiny 2, World of Warcraft, and Team Fortress 2, to name just a few.
What Makes GaaS Unique?
GaaS is unique because the idea that video games can be services that you pay for over time is a relatively new idea in the games industry. The last time this sort of idea was popular in gaming was during the bygone era of arcades, where arcades were seen as a sort of social gaming service that cost quarters to use.
However, compared to arcades, this new GaaS model is much more extensive and customizable. Many different payment options can be used in the GaaS model, making it appealing for any kind of project.
Free-to-play games can adopt the GaaS model to monetize their product while still maintaining zero costs to entry. This makes games accessible to all and can contribute to an increased player count.
Buy-to-play games can use the GaaS model to make even more money after their initial release. By using subscription fees, in-game cash shops, or downloadable content, games can continue making revenue long after their initial point-of-sale.
What Impact Has This Had on the Gaming Industry?
So if we know what GaaS is now and what makes it unique, what has its impact been on the gaming industry? How has it affected developers and gamers alike?
One thing is for certain, the GaaS model has almost tripled the net value of the gaming industry. Video games are now a multi-billion dollar industry that is worth more than the film industry and music industry combined. The GaaS model has made video games more profitable by a considerable margin.
For game developers, the extra money from GaaS is a massive boon. It provides a continuous stream of income which provides better job security and better resources for development. Arguably, this can translate into better games being made.
The Impact on Different Kinds of Gamers
For gamers, GaaS can provide a constant stream of game updates. Certain games using GaaS become never-ending services of seasons, updates, and new content. This can keep a game fresh and interesting for years, ensuring things never “end” or get stale. But, on the flip side, it can hurt the experience for gamers who preferred older content or simply don’t like having to keep up with all the new changes.
World of Warcraft faced this divisiveness with its player base. After so many updates, a large cohort of players began to miss the classic version of the game. Many turned to privately-hosted servers to re-experience the game as it used to be. Eventually, the developers of World of Warcraft agreed to host two main versions of the game: a Classic version and a Retail version, to keep everyone happy.
A common complaint about GaaS is that whenever gamers return to their favorite GaaS game after a break, they are greeted with what feels like a brand new game full of new content that must be re-learned in order to play again. For them, GaaS games can feel like a lot of work to keep up with.
One day I will finish a video game instead of giving up when it gets too difficult… one day
— rat girl (@HaikuNeMiku) April 13, 2021
Another common complaint of GaaS games is that they have no true “ending,” because there is always new stuff being added to them. For some, this can be a turn-off. Compared to traditional games that have a start, a middle, and an end, GaaS games can feel like they have a never-ending middle that keeps growing.
On the other hand, some gamers love constant updates because they feel it keeps things fresh and exciting. And, depending on the implementation of GaaS, updates can be as sparse or frequent as the developers like. These changes can be appealing for some, so GaaS isn’t necessarily a bad thing.
GaaS: A New Way to Pay for Games
Many games are jumping on the GaaS bandwagon for various reasons. Whether it is to maximize profits or to make a game more accessible, GaaS is here to stay and can be implemented in various ways.
Developers and publishers certainly appreciate the extra revenue GaaS can bring in, but gamers stand more divided on the issue. Some gamers love this trend, while others hate it. But perhaps what gamers like or dislike about GaaS depends on the specific implementation of it rather than the model itself.
At the end of the day, GaaS is just another option for monetizing games that can be utilized however developers and publishers see fit. It can be used to gamers’ benefit or detriment, depending on how it is implemented. More options are never a bad thing; it just depends how they are used.
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