Gaming: How something free makes money

Whether you enjoy playing games on your smartphone, computer, or console, you’ve got tons of options, including free-to-play games. Some of the most popular games right now, including Genshin Impact, Forge of Empires, and Destiny 2, are free to play. So why would companies give away games? As is usually the case, there’s a catch.

Video game developers have perhaps perfected the use of free products to draw customers in, then upselling to drum up revenues. Bungie, for example, gives away the base Destiny 2 game for free.

As you get into the game, Bungie tempts you with expansion packs, such as Beyond Light, which adds new levels, worlds, and stories. The Beyond Light expansion typically retails for $39.99 and has topped sales charts on Steam and other platforms, according to pcgames.com

Besides expansions and add-ons, many developers also encourage people to make in-app purchases. You might buy a distinctive outfit for your in-game character or a special weapon, for example.

Another popular way to get customers paying is to offer a ‘loot box.’ You pay for the box, then open it up and find out what you got. Often, you’ll get costumes or weapons for your character. And in some cases, you’ll receive rare items. Some critics liken loot boxes to gambling, however. While some get great items, a lot of folks receive items not worth much.

Genshin Impact uses loot boxes, among other tactics, to drive sales within the free-to-play game. The game has pulled in over $2 billion in sales across PCs, consoles, and mobile platforms.

Free is free. Yet if you can upsell other products or services, you can pull in revenue.