Way Back When
Making money (or trying to make money) from game sales used to be fairly simple. When video games were first launched, they were supplied on physical cassettes and later on CDs. Customers went into a physical store and made a one-off purchase of the game. It belonged to them; they took it home, played it, shared it with friends, or maybe sold it to someone else. The biggest gamble for the development companies was forecasting how much stock to produce. It was all a delicate balance in the early 1990s, and companies like Sega and Nintendo could get it badly wrong, leaving them with mountains of unsold stock. While this can happen in today’s physical market, online sales do not carry the same risk.
Press Fast Forward
Fast forward 30+ years, and game sales are considerably more fragmented. People can stream, rent, subscribe, or buy. They can purchase virtual or physical products. Interestingly, despite the popularity of mobile devices and virtual stores, the video game companies are still not prepared to give up on physical games. Boxed games sales across all formats have been tumbling. In the UK alone, Nintendo Switch’s boxed game sales fell by 1.8 million in 2024, but its market still remained predominantly physical.
PlayStation was different, however, with almost two-thirds of games sold as downloads in 2024. However, as 2026 promises to be the year we re-embrace the analogue format across entertainment and communication, we could see a change in direction again.
Multiple Income Opportunities
One of the most significant changes we have seen since the early days is that game developers no longer rely on one-off sales to make money. Game marketing has completely reinvented itself as social media, such as Instagram, YouTube, and Twitch, has given companies direct access to potential customers (albeit now it is often via influencers). Monetization is designed into games at every stage, including loot boxes, randomized drops, probability‑based upgrades, and exclusive content and animations. In RPG games in particular, the opportunities to encourage in-game additional spending are seemingly infinite. When it is done well, it enhances the game experience; poorly executed, it can leave players feeling ripped off and manipulated.
If gaming is entertainment, then it needs to be just that. Paid-for games need to be playable and accessible for all, whether a player chooses to access additional monetized content. Free games are another story, as the developer needs to make money either through advertising or selling additional content opportunities. Whether games are bought, subscribed to, rented, or downloaded for free, core loop engagement is key to success. Excellent monetization is not an add-on but is built into psychological design, social systems, reward timing, pace, and progression.
Learning From The Casino Industry
The latest development that we are seeing is the integration of casino-style reward loops to keep players coming back for more. Land-based and online casinos have been known for decades that the games they offer are enduring and alluring. Now the RPG developers are using similar enticements- not only to increase revenue but also to improve the player experience and introduce fun. Reward loops, variable outcomes, and randomness are proven engagement methods in modern casino games, and they map perfectly onto modern RPGs.
If you are unfamiliar with online casino games, you might not be aware that unpredictable rewards, near-miss excitement, and escalating tiers are what make millions of Canadians super-fans of these games. In fact, Canadians are amongst the most fervent online casino players in the world, so it is little wonder that the game developers are also attracted to this market. Any developer looking for the best-in-market recommendation could do worse than check out a review site like https://www.onlinecasino.ca/ to understand which daily and weekly retention cycles, game mechanics, and bonuses are most popular.
Inbuilt Monetization
Hybrid monetization in games rewards engagement, keeps players loyal to the titles, and provides ongoing income streams for studios. Players might choose cosmetic microtransactions in the form of how they look or in-game collectables. However, game advancement can also be a profitable loop for the developers with battle passes and optional premium content. Irresistible features that are increasingly commonplace are loot boxes and gacha systems. There is a promise of a reward, but that reward is random, and there is no guarantee of what a player will receive.
For The Thrill Of It
Pulling or rolling for rewards with uncertain outcomes is a casino-style approach. The thrill is in what might happen – the micro-moment between ‘pressing the button’ and revealing the reward. While the circumstances might be different, this is a carbon copy of the psychological process behind playing roulette or slot machines. Whether the stake is a penny or $100, it is the anticipation that is so compelling. In RPG games, these mechanics can either be triggered using currencies earned through gameplay or by making additional in-game purchases.
These loops fit perfectly into the RPG model, where the player is looking to progress from a basic player to an elite one. The standard route might be arduous and lengthy, and backdoor shortcuts can be enticing to achieve higher in-game status. Using currency earned by completing tricky missions is one way to advance; making additional payments for a chance to advance more quickly is another. In-game monetization is not separate from the gameplay; it is part of the system.
Benefits Are More Than Simply Financial
Casino-style loops can increase session time, raise a player’s lifetime value, boost retention, and create more predictable income streams for game producers. Back in the early 1990s, the idea of broad and continuous income streams in an individual game was not even a pipe dream. Even selling game-related merchandise was still in its infancy. The concept of adding in-game complexity was seriously shunned – at that time, games were still being released full of glitches and errors!
Back To The Future
The industry has come a long way and, by its very nature, will continue to evolve. We can expect to see more blended gameplay mixing up how we pay and play. AI is playing a significant role in personalising the gaming experience, hitting the exact dopamine spot to maximise retention, with rewards hitting at just the right moment. While none of it is gambling in the pure legal sense, the developers are borrowing from that industry to tap into proven psychological engagement patterns
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