In 1993, id Software did something audacious: they gave away the entire first episode of DOOM—not a time-limited demo, not a crippled version, but a complete, polished, standalone experience that left players hungry for more. This wasn't charity; it was brilliant business. Players got genuine value for free, and when they reached that cliffhanger ending, the path to purchasing the full game felt natural, not coercive.
This principle—give something valuable for free, then invite people to pay for more—remains the foundation of ethical, sustainable game monetization. The models below explore various ways to implement this philosophy in 2025, from traditional premium releases to living games with ongoing support.
Guiding Principles: Every model here balances two goals: providing genuine value to players (free or paid) and creating sustainable revenue for your team. There are no dark patterns, no exploitation, no "hope and pray" strategies—just honest approaches that respect both your players and your revenue-sharing partners.
Context: This document supports teams using revenue-sharing systems to collaboratively develop games. Your business model affects how revenue flows through your team, when payouts happen, and how sustainable the project becomes. Choose thoughtfully.
How It Works: Set a reasonable minimum price (e.g., $5-10) that ensures sustainability, but allow customers to pay more if they wish to support the project. This is distinct from pure "pay what you want" ($0 minimum)—you're establishing a floor while giving supporters the option to pay above asking price.
Best Suited For:
Platform Compatibility: PC (itch.io is ideal; Steam doesn't support this), Web (via your own payment system), Mobile (less common), Consoles (not supported).
The key to making this work is setting a minimum price that genuinely reflects development costs and team compensation. If your game cost $30K in equivalent labor to produce, and you expect 2,000 sales, your minimum should be at least $15 to break even—then hope that some players pay $20-30 to push into profit.
This model works best when combined with transparency: "We're a small team, this game took X months to make, and we're asking $Y minimum to keep making games. Pay more if you can!" Players respond positively to honest communication.
Itch.io is the natural home for this model, as it's built into the platform's DNA. Humble Bundle also embraces flexible pricing. For Steam releases, you'd need to stick with fixed pricing or use a separate "supporter pack" DLC that adds cosmetic bonuses for extra payment.
From a rev-share perspective, this model introduces slight complexity: do supporters who pay above minimum receive any special recognition in contributor calculations? This should be clarified upfront with your team.
Examples: Many successful itch.io games like A Short Hike, LOCALHOST, Butterfly Soup; bundle platforms like Humble Bundle use flexible pricing extensively; Wikipedia's donation model (though not a game) shows how "pay more if you value it" can work at scale.
How It Works: Release your game in discrete, self-contained episodes or chapters, each sold separately at a lower price point (e.g., $5-10 per episode). Players purchase episodes individually as they release, or can buy a "season pass" upfront for all planned episodes at a discount. Each episode must deliver a complete arc while contributing to a larger narrative or gameplay progression.
Best Suited For:
Platform Compatibility: PC (Steam, itch.io, Epic—all support episodic releases), Consoles (common for narrative games), Mobile (works but less popular), Web (possible for browser games with save systems).
The episodic model lives or dies on consistency. Telltale Games pioneered this approach successfully for years, but their downfall came from overextending across too many series simultaneously while quality suffered. If you release Episode 1 to acclaim but take 18 months to release Episode 2, players will have moved on.
A season pass—where players pay upfront for all episodes at a discount—provides financial security and commits your audience to the full journey. However, it also locks you into delivering on promises, which can be stressful if development hits snags.
Consider release cadence carefully. Monthly episodes might be too aggressive unless you're working with significant pre-production (like Telltale did). Quarterly releases (every 3-4 months) provide breathing room while maintaining momentum. Anything beyond 6 months between episodes risks losing your audience.
For rev-share teams, this model creates interesting dynamics: early contributors benefit from all episode sales, while later contributors only share revenue from subsequent episodes. Clear agreements about how episode-specific vs. series-wide contributions are compensated is essential.
Examples: Telltale's The Walking Dead (the gold standard), Life is Strange series, Hitman (2016-2018) episodic structure, Kentucky Route Zero, Resident Evil Revelations 2, Dontnod's episodic adventures.
How It Works: Release a complete, fully-featured base game for free—this is your generous hook that attracts a massive player base. Then, monetize through optional expansions, story DLCs, new campaigns, or substantial content packs sold as separate purchases. The free game must be genuinely good and complete, not a hollow shell.
Best Suited For:
Platform Compatibility: PC (Steam, Epic, standalone), Consoles (PlayStation, Xbox, Switch), Mobile (App Store, Google Play—very common model here), Web (less common due to payment friction).
The critical balance here is "how much game is free?" Too little, and it feels like a demo in disguise. Too much, and players have no incentive to buy DLC. The base game should offer 10-20+ hours of quality content or infinite replayability through procedural/multiplayer systems. DLC should feel like "more of what I love" rather than "the rest of the game they held back."
Successful examples typically follow this formula: free base game contains complete core experience (e.g., full campaign, all base mechanics, solid content loop), while DLC adds side stories, new characters/classes, cosmetic customization, or expansion campaigns. Players should feel they got their money's worth from the free version before considering DLC.
This model works exceptionally well for multiplayer games where a large player base is essential for matchmaking, guilds, or social features. A small paid player base leads to dead servers; a massive free base ensures thriving communities. Then, monetize the most engaged players through expansions or seasons.
For rev-share teams, this creates a delayed payoff structure: months of work generate zero direct revenue, then DLC sales trickle in over time. Team members must be patient and committed to the long game. Clear communication about expected timelines for profitability is crucial.
Examples: Destiny 2 (free base game + paid expansions), Warframe (free-to-play with purchasable content), Path of Exile (free core + supporter packs), Apex Legends (free game + battle passes/cosmetics), Fortnite Save the World (originally), Team Fortress 2 (went free-to-play with cosmetic monetization).
How It Works: Release a free demo (typically 1-3 hours or first few levels) that seamlessly upgrades to the full game when purchased. Player saves, progress, and settings carry over—no reinstallation, no lost progress. This is essentially a time-limited or content-limited trial that unlocks with a purchase.
Best Suited For:
Platform Compatibility: PC (Steam, GOG, Epic—excellent support), Consoles (PlayStation, Xbox, Switch—common practice), Mobile (possible via in-app purchases, though less common for demos), Web (less suitable due to payment integration challenges).
The demo length is crucial. Too short (30 minutes) and players barely scratch the surface. Too long (5+ hours) and they've experienced enough to feel satisfied without purchasing. The sweet spot is typically 1-2 hours or "until you reach the first major milestone/boss/challenge," whichever comes first. Leave players wanting more at a narrative or gameplay cliffhanger.
This model pairs perfectly with Steam Next Fest and similar demo-focused events, where visibility for demos is significantly higher than regular releases. A well-timed demo during Next Fest can generate thousands of wishlists and conversations, translating to strong launch-day sales.
From a player psychology perspective, the investment made during the demo creates commitment. If someone spends 2 hours customizing a character, learning mechanics, and getting emotionally invested, they're far more likely to purchase than if they were starting from scratch post-purchase. This is the "endowment effect" working in your favor.
For rev-share teams, demos generate no direct revenue but significantly improve conversion rates compared to no demo at all. Studies show games with demos often see 20-40% higher conversion from wishlist to purchase. The demo is an investment in reducing customer acquisition risk.
Examples: Resident Evil Village/2/3 demos, Monster Hunter World/Rise demos, Octopath Traveler demo, Dragon Quest XI demo, most AAA console releases with "trial versions," Factorio's free demo (one of the best conversions in the industry).
How It Works: Release a free or low-cost base game engineered for extensibility, then build a curated marketplace where creators can sell mods, levels, campaigns, or assets. The platform takes a percentage (typically 20-30%) of each sale, with the rest going to the creator. You become the game engine provider and marketplace operator.
Best Suited For:
Platform Compatibility: PC (ideal—full modding support), Consoles (extremely difficult due to platform restrictions), Mobile (possible but rare due to app store policies), Web (challenging but doable for browser-based games).
This is the most ambitious model here, essentially transforming your game into a platform business. You're not just making a game; you're building an ecosystem. Success requires technical excellence (robust modding API, easy-to-use tools), infrastructure (payment processing, content delivery, marketplace UI), and community management (quality standards, creator support, dispute resolution).
The gold standard is Valve's Steam Workshop combined with paid mods (though Skyrim's paid mod experiment failed due to poor execution and community backlash—lessons learned). Roblox demonstrates this model at massive scale: free-to-play core with creator revenue sharing, generating billions annually.
Key to avoiding backlash: launch with a robust free mod ecosystem first to prove your tools work, then introduce paid mods as an optional monetization avenue for creators—never gatekeep basic modding behind paywalls. The community must feel the platform serves creators, not exploits them.
For rev-share teams, this model creates long-tail passive income but requires sustained operational commitment. Someone must curate submissions, handle payouts, and maintain infrastructure indefinitely. The upfront investment is enormous, but the payoff can dwarf traditional sales if the ecosystem thrives.
Examples: Roblox (the ultimate example—free platform, creator revenue share), Dreams (PlayStation—user-created games within a game), Farming Simulator mods (official marketplace), Fallout 4/Skyrim Creation Club (curated paid mods), Unity Asset Store / Unreal Marketplace (not games, but the model is identical).
How It Works: Release an incomplete but playable version of your game at a reduced price (e.g., $15 for what will eventually be a $30 game). Players purchase Early Access knowing they're buying into ongoing development. As you add features, content, and polish, the price gradually increases until the 1.0 release.
Best Suited For:
Platform Compatibility: PC (Steam is THE platform for Early Access—built-in support and discoverability), Consoles (Xbox Game Preview exists; PlayStation and Switch rare), Mobile (uncommon), Web (possible via itch.io or your own site).
Early Access is not a safety net for shipping garbage and hoping players won't notice. The minimum viable product must be genuinely fun and demonstrate clear potential. Players are remarkably forgiving of bugs and missing content if the core experience is compelling and the developer communicates openly.
Transparency is everything. Maintain a public roadmap, post regular development updates, and acknowledge when things go wrong. Games like Factorio, Rimworld, Slay the Spire, Hades, and Valheim succeeded in Early Access because developers treated players as collaborators, not ATMs.
Set realistic timelines and under-promise, over-deliver. If you think 1.0 will take 18 months, tell players 24 months. Finishing early delights; delays frustrate.
For rev-share teams, Early Access creates rolling revenue distributions as development progresses. Contributors who join mid-development may negotiate different terms than founding members. Clear versioning of rev-share agreements by development phase prevents disputes.
Examples: Factorio, Rimworld, Valheim, Slay the Spire, Hades, Deep Rock Galactic, Subnautica, Baldur's Gate 3, Minecraft (before official 1.0), Terraria (massive post-1.0 updates blur the line).
How It Works: Release a completely free game with all gameplay content accessible to everyone. Monetization comes exclusively from cosmetic items—skins, emotes, visual effects, customization options—that have zero impact on gameplay. Players who love the game and want to express individuality or support development can purchase cosmetics; everyone else plays for free forever.
Best Suited For:
Platform Compatibility: PC (Steam, Epic, standalone), Consoles (all support F2P + cosmetics), Mobile (ideal platform—common model), Web (works for browser games with integrated payments).
The critical distinction here is cosmetics-only—no loot boxes with randomized rewards (gambling), no pay-to-skip-grind (selling convenience), no exclusive powerful items. Just "here's a cool skin for $5, buy it if you want." This keeps the game fair and respected.
Success requires either a massive player base (millions of players) or a smaller, highly engaged community willing to spend. Games like Fortnite, Apex Legends, and League of Legends thrive because tens of millions play for free, while a fraction spend heavily on skins. Indie games can succeed at smaller scale if the community is passionate.
Battle Passes (season-based reward tracks with free and premium tiers) fit this model perfectly when done ethically: free tier gives value, premium tier ($10) adds cosmetics but doesn't lock gameplay. Players appreciate the value proposition.
For rev-share teams, this model demands long-term operational commitment. You're not making a game and moving on; you're running a live service with ongoing art production, events, and community management. Staffing must account for perpetual development.
Examples: Fortnite (cosmetics-only, billions in revenue), Apex Legends, League of Legends, Dota 2, Path of Exile (mostly cosmetics), Team Fortress 2, CS:GO/CS2 skins, Fall Guys, Rocket League, Warframe (hybrid—some convenience, mostly cosmetics).
How It Works: Release your game for free (or very low cost) and offer optional monthly subscription tiers ($5, $10, $20) where supporters receive perks like early access to updates, behind-the-scenes content, exclusive cosmetics, dev commentary, or simply the satisfaction of supporting development. The game remains fully playable without subscribing, but patrons get extras and direct connection to the team.
Best Suited For:
Platform Compatibility: Platform-agnostic (Patreon, Ko-fi, SubscribeStar work with any game), PC (easiest integration), Web (seamless for browser games), Consoles and Mobile (trickier due to platform policies, but possible via external links).
This model thrives on transparency and personality. Patrons aren't just buying a game; they're supporting creators they believe in. Regular devlogs, personal updates, candid discussions about challenges, and genuine gratitude go a long way. Think of it as crowdfunding that never ends—you're building a relationship, not just a transaction.
The key is ensuring free players never feel like second-class citizens. Cosmetics, early access (free players get it later), and behind-the-scenes content are acceptable perks. Gameplay features, essential quality-of-life improvements, or story content exclusively for patrons will breed resentment.
Patreon works exceptionally well for indie developers building cult followings around unique, heartfelt projects. Dwarf Fortress, for example, sustained decades of development through donations and later Patreon before its Steam release. Many visual novel and RPG Maker developers rely on this model during development.
For rev-share teams, Patreon income can be distributed monthly based on active contributors. However, managing patron perks (exclusive Discord channels, dev Q&As, early builds) requires dedicated community management—factor this into role allocations.
Examples: Dwarf Fortress (Patreon funded development for years), Starsector (ongoing dev supported by sales + Patreon), numerous visual novel and RPG Maker devs, webcomic creators (relevant model), open-source projects (Blender, Godot funded similarly), many YouTubers/streamers (parallel model).
How It Works: Release your game's source code openly (MIT, GPL, or similar license), allowing anyone to download, modify, and play for free. Monetization comes from selling convenience: official compiled binaries on Steam/stores, cloud saves, multiplayer hosting, official support, premium assets, or "supporter editions" with extras. Technical users can compile for free; everyone else pays for ease and quality-of-life.
Best Suited For:
Platform Compatibility: PC (GitHub + Steam/itch.io combination is ideal), Web (perfect for browser games), Mobile (challenging due to app store policies), Consoles (nearly impossible—closed ecosystems conflict with open-source ethos).
This model is philosophically driven but commercially viable with the right approach. The majority of users don't know how to compile code or set up development environments—they'll gladly pay $10-15 on Steam for a convenient, auto-updating version with Steam achievements, workshop support, and cloud saves. You're selling ease, not code.
Dual-licensing is an option: source code is open (GPL), but art assets require separate licensing. This allows code transparency while protecting artists' work and creating a revenue stream through asset packs.
The "pay what you want with minimum" or "supporter edition" models pair beautifully with open source: the game is free (both as in freedom and price if you compile it), but a $15 "supporter edition" on Steam adds convenience, extras, and supports development. Players appreciate the honesty.
For rev-share teams, open-source complicates IP ownership and future monetization. Clear agreements about licensing, asset rights, and how community contributions are credited/compensated are essential before releasing code publicly.
Examples: Mindustry (open-source on GitHub, paid on Steam for convenience), Endless Sky (fully open-source, donations optional), Shattered Pixel Dungeon (open-source roguelike, Play Store version pays dev), Cataclysm: Dark Days Ahead, OpenTTD (transport sim—open-source but uses original Transport Tycoon assets legally), Battle for Wesnoth.
Not all monetization strategies are created equal. The models below are well-intentioned but rarely sustainable for serious development. Reserve these for game jams, learning projects, or passion experiments where profitability isn't a goal.
The Idea: Release the complete game for free with no monetization, then ask players to donate if they enjoyed it. Maybe include a PayPal link or Ko-fi button.
Why It Fails: Donation conversion rates are abysmal—typically 0.1-1% of players donate, and those who do average $2-5. Even viral successes rarely generate meaningful income. Players assume "free game" means "developer doesn't need money" or "I'll donate later" (they won't). This only works if you have a massive following who feels personally invested in you (e.g., streamers, established creators).
Verdict: Use this for game jam entries or portfolio pieces where income isn't expected. For real projects, choose any other model.
The Idea: Let players download the game and pay whatever they think it's worth, including $0.
Why It Fails: 70-90% of players pay $0. Of those who pay, most pay $1-3. Average revenue per download is typically under $1, making it nearly impossible to fund development. It signals "this isn't worth paying for," even if quality is high. Players with money aren't motivated to pay more; players without money take it free.
Better Alternative: Set a minimum price ($5-10) with "pay more if you want" flexibility (see "Flexible Pricing Model" above). This ensures baseline sustainability while retaining the goodwill gesture.
Verdict: Avoid unless your goal is maximum reach with zero revenue expectations.
The Idea: Build the game first, get players hooked, then decide how to charge for it.
Why It Fails: Retrofitting monetization into an existing game with an established free player base almost always creates backlash. Players feel betrayed when free content becomes paywalled. Your design may not support the monetization model you choose later (e.g., trying to add cosmetics to a game with no character customization). Teams waste years building without a financial plan, then struggle to justify continued development when money runs out.
Verdict: Choose your business model before starting development. It affects architecture, scope, and player expectations from day one.
The Idea: Integrate cryptocurrency, blockchain, or NFTs as a monetization layer—sell NFT items, create play-to-earn mechanics, or tokenize in-game assets.
Why It Usually Fails: Players are deeply skeptical of crypto in games, associating it with scams, environmental harm, and exploitation. The gaming community has violently rejected nearly every crypto game attempt (see: Ubisoft Quartz backlash, Stalker 2 NFT reversal). Technical complexity is high, regulatory risks are severe, and player bases evaporate when speculation-driven hype fades. Most crypto games prioritize financialization over fun.
When It Might Work: If crypto is genuinely integral to the game's design (e.g., a trading game where blockchain provides transparency), and you're upfront about it from day one, a niche audience may embrace it. But for 99% of games, this is poison.
Verdict: Avoid unless you have a compelling, non-exploitative reason and accept a small, niche audience.
Every business model here represents a trade-off between accessibility, revenue potential, development burden, and ethical clarity. There is no universal "best" model—only the model that best fits your game, your team, and your values.
Questions to Ask When Choosing:
Hybrid Approaches: Many successful games combine multiple models. For example: free shareware episode + paid full game + optional Patreon for supporters + eventual DLC expansions. Or: premium upfront launch + cosmetic DLC + ongoing free content updates funded by sales. Don't feel locked into one approach—adapt as your game and community evolve.
Rev-Share Implications: Your business model directly affects how and when revenue flows to contributors. Premium upfront generates immediate income but tapers quickly. F2P and subscription models provide long-term trickles. Early Access creates rolling payouts during development. Episodic models benefit early contributors across all episodes. Discuss these timelines with your team transparently so everyone understands expectations.
Above All: Be Ethical and Honest. Players reward transparency, fairness, and respect. Every model here avoids dark patterns, manipulation, and exploitation. Stick to this principle, and even if your game doesn't make millions, you'll build a community that trusts and supports you for the long haul.
Good luck with your project. Choose wisely, communicate clearly, and build something people love.
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