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How do GAMES earn money?

Community Jul 29, 2022

Ever wondered how the games we play make their own money?  It's usually clear when we talk about gamers and organizers making money but talking about games earning money, might seem like a complicated process.

This blog will discuss the different types of games and how they earn money.


Gaming and Esports is one of the most rapidly growing industries right now.  The Gaming Industry In India is valued at 60 Billion in 2019 and is expected to reach 250 Billion in 2024. That does count for something when we talk about its addition to the country's GDP. Esports is finally getting the recognition it deserves in India. Youth has played the most important role in that. With a population as huge as our country, a wide gaming community definitely creates an impact. Mobile Gaming is also growing very fast in India due to the affordability of smartphones. India is one of the top gaming markets in the world by no. of users.

Coming to the question of how games earn money, it is a long process, if not complicated. Games are of different types.

Types of Games

  • Paid Games - When you visit PlayStore or Appstore, you must have seen a few games that are not downloaded for free. You have to pay some charges to download them or play them. Similarly, the games you buy online on platforms like Nintendo and Xbox also fall under this category. These games demand money from you if you want to play them. This is the major source of revenue for these games which comes from their sale or buying units.
  • Free-to-play Games - On the other hand, there are a few games that you can just download for free through PlayStore or Appstore. Games like BGMI, FreeFire Max, etc do not charge you any amount before downloading them. Such games fall under the category of free-to-play games but these games have other methods of earning revenue.
Play Play Play!
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How do games earn money?

There are different sources of revenue for earning. From selling to advertising, they earn through many channels. In the following section, we'll be discussing all these sources and how they impact the growth and success of a game in the market!


The first business strategy is advertising, widely employed in games and is quite popular. In the digital sector, advertising business models are nothing new and are widely used. To make money, games in this format display interstitial ads, and incentive-based adverts, among others. You may monetize your games on various sites, including Google Admob, which is owned by Google. Esports have established themselves in India. Leading companies are investing in esports, including Mountain Dew, Flipkart, Microsoft, Mercedes, and Red Bull.

Upfront Payment

The second source of revenue is the upfront payment approach, where games demand a certain sum up front before being downloaded. Many large, well-liked video games employ this concept.

Grand Theft Auto (GTA) Vice City is the best example of upfront payment.

Subscription and premiums

A subscription model, in which games charge a recurring modest cost, is the third revenue model employed by games. The majority of video games that use massively multiplayer online games follow this paradigm (MMOs).

In-game upgrades

Games can be downloaded for free using this model, but many enhancements cost money. The in-game character and skin upgrades cost money.

Freemium model

Another common business model employed by games is the freemium model. In this approach, games can be downloaded and played for free, but there are numerous, diverse in-game purchases known as microtransactions.

For instance, when playing the Ludo game, you can gain coins when you win or lose, and if you run out of coins, you can pay someone to buy them for you. They also use microtransactions in their games if you don't mind them. Therefore, who combined money from 2-3 company models.

Whilst strolling through any arcades, always stop to take a photo and play around in Lightroom. You’ll be impressed.
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These were some of the most commonly used techniques by games that help them to earn money and create a source of revenue for them. The easy and monotonous games with comparatively lesser coding than the more code-studded ones earn around $1000 a month, and some earn $1,00,00 just because of their gameplay and brilliant coding and strategy. In the upcoming years, we will witness many more games and earning methods.

We hope this blog helped you gain an insight into the world of monetary gaming and how it works.

You can also head to Tournafest's official YouTube channel for informative videos related to gaming and the Esports industry!

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If you enjoy playing video games, you might want to download the Tournafest app from Google Play or the App Store to compete in Esports Tournaments and Scrims for games such as BGMI, Free Fire MAX, Pokemon unite, CS:GO, CODM:MP, Valorant and Call of Duty and win exciting prizes! You may also organize tournaments and fetch unmatched perks.

Stay tuned for more and we will see you later!

Until next time,