The Rise of the Live Service Model in the Video Game Industry

In the 2010s, the video game industry experienced a seismic shift in its business model with the widespread embrace of the “Live Service” model. This model transformed the industry by allowing companies to offer games for free, generating revenue through in-game purchases.

Previously, gamers would pay a one-time fee for complete games. However, the live service model enabled companies to maximize their profits by providing ongoing content and experiences through updates and expansions, often supported by microtransactions.

While the live service model has its advantages, it has also faced criticism from some gamers who argue that it can lead to predatory practices and a focus on maximizing revenue over creating high-quality gameplay experiences. Nonetheless, the live service model has become a dominant force in the gaming industry, shaping how games are developed and consumed.

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