Monetizing The Video Game Industry

Peter Drucker once argued that a small business has its greatest opening to compete with a much larger competitor when the competitor is more concerned with monetizing some aspect of the business rather than innovating and improving what the customer receives.

This opening is now apparent in the video game industry.

Up until the past two or three years, video games offered the greatest entertainment value per hour spent. If you spent $60 on a video game, but played it 2-4 hours per day for three months, you would receive 270 hours of total cumulative value from the game (I use these numbers as an example because the average video game purchase results in approximately 267.4 hours of use).

The entertainment cost per hour for video games has been about $0.22. That is a very effective cost for your entertainment. If you choose to watch a movie, and pay $15, … Read the rest of this article!