Many gamers are wondering the same thing: will freemium games or subscription gaming be the dominant force going into 2025? The truth is, it is up to game developers to decide.

The freemium and subscription models are the two most dominant business models in the gaming industry, especially mobile gaming. However, both models come with varying monetization tactics, advantages, and disadvantages. These factors are weighed up by game developers and allow us to speculate which gaming model will prevail next year.

About Freemium Games

Freemium games are games that are free to download and gameplay is also free, however the game allows in-app purchases. Players may be exposed to advertisements as developers use these to generate revenue. 

Some game demos are also considered freemium, as they’re free to access and enjoy, albeit only for a limited duration. For example, you can access the Crazy Time demo to see if this casino game is the right pick for you before you invest any real money (or your time). With welcome bonuses and fast payouts, such demo versions are highly likely to attract more players. 

Freemium players have the option to play the entire game for free, however, in-app purchases may help speed up their progress. Freemium games are typically more accessible to a broader audience who are interested in casual gaming to pass the time.

How Monetization Works For A Freemium Business Model

Since freemium games are free to purchase, developers have to get creative to generate income. 

These games have in-app purchases, like tools, bonuses, additional levels, or cosmetic items. Although not crucial to the game, these items will perhaps help the player achieve more in the game. 

But, not everyone is interested in buying items while playing. In those cases, developers generate ad revenue.

Pros

Freemium models have several advantages that make them a popular choice in the gaming industry:

• No upfront costs: Anyone can enjoy the game for free, which attracts more users than paid-for games. 

• Increased potential for growth: Gamers are likely to recommend free, fun games to their friends.

• Flexible monetization: Developers can adjust the value of in-app purchases and the amount of ads that players are exposed to. 

• Gain insights into player preferences: Freemium games often have massive user bases, and developers can collect data on player behavior and spending habits. 

Cons

Despite all these benefits, freemium models also have some challenges that developers must consider.

• Pressure to convert free users: Developers must be able to convert free players into paying customers for the game to be financially viable. 

• Dependence on “whales”: Most freemium games rely on big spenders, called “whales”, to generate revenue. 

• Too many ads: Some developers really push the ads, with players not able to progress without watching advertisements. This can drive players away from the game. 

About Subscription Games

Subscription games are not free to play and instead charge a recurring fee (annually or monthly) to access the game or specific in-game features. There are several approaches to the subscription gaming model:

• Ongoing access to one specific game, along with all its content. This is a popular option for mobile games.
• Access to a catalog of games, like a Nintendo Switch or Xbox subscription. 
• Membership that grants exclusive access to features in several games. 

The subscription model is favored by many developers as it creates loyalty and trust with users, as well as a continuous revenue stream that developers can use to upgrade games and fix bugs.

How Monetization Works For A Subscription Business Model

Some subscription games are free to download, and even free to play, but loyal users have the option to pay a recurring amount to access premium features. Some subscription games can only be downloaded once paid for, and then the user is charged monthly or annually for continued access to the entire game. 

This model allows developers to be less reliant on ads for revenue, delivering a more enjoyable gaming experience. 

Pros

Subscription models offer the following advantages:

• Continuous revenue: Income is predictable and provides a steady revenue stream. 

• Loyal users: Those who subscribe are loyal to the game and also more engaged since they’re paying for it. 

• Ongoing value delivery: Since developers have a continuous income stream, they are encouraged to always update the content, and release new features to keep subscribers engaged and happy with their subscription.

Cons

Subscription gaming offers many benefits, but there are also some disadvantages that developers have to consider.

• Off-putting to some: Those unfamiliar with the game may be hesitant to invest on an ongoing basis into a game that they are not sure they might enjoy. 

• Pressure to deliver: Developers experience pressure to constantly deliver new content to keep subscribers satisfied. 

• Unhappy users: If players feel like they’re not getting the value they want, or fresh content regularly, they will unsubscribe. 

• Restricted audience: This gaming model is not tempting for casual gamers. 

Which Is Better: Freemium or Subscription Games?

Both models have their advantages and downsides, making it a challenge for developers to decide which model is better. Each also applies to different scenarios and developers have to consider various factors. 

Firstly, the revenue potential of the model should be considered. Freemium games have the potential to generate a lot of revenue through both ads and in-app purchases, however, it can be a challenge to convert free users into paying ones. Subscription models come out on top here as they provide a steady stream of revenue, as long as the developer can keep users engaged. 

Freemium games are also able to attract a broad audience, however, retention can become tricky, especially if the game is full of ads or players have to purchase items to progress. Although it can be trickier to attract users with a subscription model, developers are more likely to retain a loyal user base. 

Wrapping Up: Looking To 2025

It is difficult to determine which model will prevail in 2025, as both are top choices for game developers. However, based on current trends, it is likely that more developers will turn to subscription models, as they promise steady revenue, player retention, and also more value for players who want to avoid ads and pay-to-play games. 

It is also likely that 2025 will see the rise of hybrid gaming models, where a single game caters to both freemium and subscription players.