Business Models of Video Games: Past, Present, and Future

Past

The first consumer-facing video games trace back to the ’70s and ’80s in the form of arcades. During this time, each game was housed in its own separate physical device due to the hardware requirements of running video games. As such, these businesses relied on physical locations and high fixed costs to provide consumers with a limited number of game options by today’s standards ranging from Pacman to Galaga.

Present

8th generation consoles (Xbox One, PS4), modern PCs, and mobile games make up the primary game platforms popular in the present day.

Future

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Matthew Perrotta

Matthew Perrotta

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Video Game Industry Enthusiast | Wharton MBA | Independent Consultant