Learning from the SaaSification of video games [Finance Fridays]

As the economic systems grow more intervtwined, the monetization plans will keep changing

Jun 18, 2022

Happy Friday my amazing reader,

How are you doing today? I’m having a great time with my maternal grandparents. It rained today, so fortunately the weather is slightly better.

Recently, I came across a very interesting video How SaaS is Transforming the Video Game Industry by the fantastic YouTube channel Modern MBA. He goes over the video game industry as a whole, and compares the traditional business model of monetization with the newer “as a Service” business model. If you have any aspirations of working in/with the video game industry, you don’t want to miss this. However, the lessons also apply to other leisure-related content like TV series (we already know that Netflix pays Data people very well). So you don’t want to miss out.

Taken from Deloitte’s **The shift to flexible consumption**

Interesting Takeaways

Following are some thoughts I had while watching this video. Think them over.

There are many ways to the top- Notice how when done well, wildly different monetization plans work successfully in the same industry. If you build a good product and monetize around it, the profits will happen.
Don’t rush into monetization too quickly- Companies like EA have ruined a lot of goodwill trying to monetize at the cost of a good product. Don’t make this mistake.
Your life as a service- It wasn’t that long ago that people thought that the SaaS (Software As a Service) was not a good business model. Now quite literally everything is a service. Take this newsletter as an example. It provides education as a service to you. Instead of paying a higher upfront cost, you pay lower amounts so that you can try out the newsletter with a much lower investment (this newsletter has a guaranteed refund policy, so there’s actually 0 risk to you!) This newsletter is built on top of Substack, which provides me their Platform as a service. They handle my distribution, storage, payment, and other logistics. In return, they take a cut of the revenue we make here. If you look at your own life, you will see many examples,of services being layered on top of each other.
Keep an eye out- Building off the last point, as economic systems mix with each other, we will continue to see more novel paths to monetization. Don’t make the mistake of assuming what is will be. Learn about how different business models and monetization paths. You never know what will become the dominant paradigm in the future. Understanding how different paths work will allow you to spot the trends required to get in early and maximize your returns.

If you are looking for a resource that combines Technical Knowledge with a base of insightful economic analysis, look no further. This newslettter has you covered. Use this link for 2 weeks completely free.

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Happy Prep. I’ll see you at your dream job.

Go Kill All you Financial Fiend,

Devansh <3

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