Extending the Concept of Versioning in the Video Games Industry

Building on Tom’s article which can be read in this blog (https://digitalstrategy.rsm.nl//2018/09/21/versioning-and-the-gambling-debate-in-the-video-game-industry/), the video games industry is perhaps one of the best examples in order to understand the dynamics of versioning and to grasp its various benefits. In this sector, versioning can be accomplished with little effort and in varied ways, normally with different strategic purposes and allowing companies to derive various benefits.

The first and most evident way is perhaps, multiplatform releases. In order to cater to a wider audience, publishers release their games in multiple platforms (generally, Xbox One, PS4 and PC), mostly with minimal observable differences between them. Adding to these already three different versions, publishers also usually launch pre-order bonuses and different versions for each platform. Taking the FIFA 19 game example, at launch you could choose from three versions for each platform: Standard Version containing the full-game (€69.99), Champions Edition containing the full-game, 3-day early access to the game and FIFA Ultimate Team (FUT) boosts (€89.99) and finally, an Ultimate Edition with all of the above benefits plus additional FUT boosts for €99.99. This said, upon release only, FIFA 19 had already launched in nine different versions.

Other times, versioning can be integrated into the game’s business model from day one and be the source of revenue, as it happens with the freemium model, similarly to Spotify’s business model, which distinguishes between a free and a premium version. However, long after release, companies are still able to capture value from versioning, being able to do it mainly through three different ways: complete editions/game of the year editions, remakes and remasters.

A videogame’s lifecycle has widely changed during the last generations of consoles and before, as games would become outdated and their player-base would decrease, months or a couple of years after release, the games could be found heavily discounted on stores. This has changed, however, with the introduction of Digital Local Content (DLC) which adds additional content to the original game under the form of features, items, quests or modes attracting players back into the game. After releasing these packs of contents, companies are now able to bundle them together with the initial release under a name similar to “Complete Edition”, bumping the price of a one- or two-year-old game back to the full-price of 69.99€ at a low marginal cost.  A good example of this is Ubisoft’s Assassin’s Creed 2, which has been bundled with DLC and re-bundled with other games not in one, not in two, but approximately in fourteen different versions.

Versioning can also come from the remastering of a game, which consists in relaunching the existing game while making some small tweaks (e.g. increase resolution from 720p to 1080p or from 30 frames-per-second to 60) or introducing new features in order to take advantage of the capabilities of a new platform. This versioning strategy presents several advantages to developers and publishers. Firstly, the costs of remastering a game are significantly lower than developing one from scratch and its production process can usually be outsourced. Secondly, it allows companies to promote their intellectual properties (IP) to audiences that were not able to purchase their IPs before as they, for example, did not have the console for which it was initially launched. Thirdly, these remakes are commonly launched right before a new game of the series is released, proving as an effective way to promote it. Finally, when new hardware is launched, remasters allow developers to experiment and learn from it, representing a much less risky approach then releasing a brand-new big budget title.

Companies can also remake their games, which is not to be confused with remastering since remaking (as the name implies) consists in remaking a game almost from the ground up rather than simply tweaking it. This usually happens if the game becomes too outdated, making it very difficult for developers to update existing assets and to use an obsolete game engine, making it more efficient to just remake it all together. This strategy has the added advantage of appealing to the already existing core fanbase, leveraging the “nostalgia economy”.

This said, ways of versioning in the video game industry are wide and diverse, and should be integrated into a company’s strategy accordingly as a way to capture value during or long after a product is released. What do you think? In what other ways can developers and publishers capture value through versioning? Do you have a better example of an industry where versioning is an expanding reality? Let us know in the comments!