In the News Teaching Activity – why Gen Z is paying for ‘forever games’ (Dec 2024)

Gen Z’s unique gaming preferences are transforming the industry, shifting the focus from one-time purchases to live-service models fuelled by in-game spending and community engagement.

The gaming industry's pivot to live-service models reflects seismic economic shifts driven by Gen Z’s demand for social, interactive, and customizable experiences. Free-to-play games with in-game purchases now dominate, with in-game revenue accounting for 67% of the global market, surpassing traditional game sales. While this model fosters thriving online communities and ongoing content updates, it also intensifies competition and raises development costs, favouring established studios over smaller creators. Critics warn of limited time for new games, risking market saturation. As players embrace these expansive worlds, questions remain about how many such games the industry can sustain before reaching its breaking point.

The rise of 'forever games' - and why Gen Z is paying for them | Money News | Sky News

1. What factors have driven the change in the way the gaming industry raises its revenue?

2. Why are the costs of game development increasing in the live-service model, and how do these rising costs influence the incentives and strategies of game developers and publishers?

3. How might the dominance of large studios in the live-service gaming market ultimately reduce competition in the gaming industry?