About Micropayment

In the gaming industry there appears to be a general consensus that the current game pricing model cannot continue as development costs increased dramatically as gamers demand a visual celebration from their HD games. In fact, EA has lost $82 million last quarter, canceled several games and expressed its intention to focus on core franchises, which means less perceived risk which, in turn, means less innovation and new experiences for the gamer.

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The gaming industry has to find a way to pay for the experience that gamers demand and for the majority of developers and publishers the existing financial model is not working. The sector has witnessed the explosion of casual gaming and the enormous financial rewards this brings, which it wants to adapt to the most difficult gaming experience. Of course, there are already other financial models outside of the industry standard single fixed price, maybe the most popular is the monthly pay plan. Usually, MMORPG's such as World of Warcraft pay an initial lower game fee, but then pay a monthly fee for their ongoing access to the game and its content.

This monthly fee allows the user to access, update bugs and usually update the content. This model allows developers to be more adventurous and to try new things because they can release new content and receive immediate feedback from the consumers when they are finished and the more traditional flat fee the developer buys annually must be safer to ensure they get a profit.

The micropayment gaming model is another model which is very much tossed away as the potential savior of the gaming industry. The initial and basic experience could be free but then the user must pay small fees to access more content or additional features. A popular example is the numerous social network games on Facebook, with FarmVille as a prime example. The game is completely free to play, although you can 'enhance' your experience by purchasing real cash in game items.

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