At Smart Data Collective, we have talked a bit about the role of artificial intelligence in the gaming industry over the last couple of years. Most of our emphasis has been placed on artificial intelligence applications that focus on improving the gaming experience. However, there are other ways that artificial intelligence is influencing the gaming industry.
Artificial intelligence could solve one of the biggest issues the average gamer faces. Avid gamers have discovered that it is a rather expensive hobby. During the third quarter of 2019, gamers spent an astonishing $9.2 billion on their hobby.
Some people practically go broke playing their favorite video games. The good news is artificial intelligence could change the monetization model of the gaming industry to minimize frustrations.
How could this work without ruining the profitability of this sector? Our hypothesis will cover some of these details.
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AI Could Shave the Cost of Gaming Regularly
Gamer spend a lot more money than people that don’t enjoy the hobby think. You may be surprised to hear that the average millennial spends $112 a month on video games.
This isn’t just the case for companies that offer browser based or console games, either. Gaming sites that offer slots and similar services can also use AI to cut their costs significantly.
There are different ways that game providers can monetize their creations. Back in the 1980s and 1990s, their monetization options are far more limited. They simply sold the disks or cartridges that the games came with.
Today, they have other options. They can provide players with the opportunity to purchase services within the game. They can also display advertisements to make the gaming experience free.
The biggest way that gamers get into trouble is when they are addicted to a game that entices them to purchase lots of in game services. If they are playing a complicated game like Call of Duty, they might have to buy more lives. People playing games like Candy Crush might buy extra turns. Artificial intelligence could help people from overspending on the services.
There are two possible solutions we can think of.
Superior advertising features with AI
Advertising sounds like the best way for companies to give players the opportunity to enjoy their favorite games without spending a ton of money. They don’t have to pay anything to see the advertisements that are displayed to them.
If it sounds so simple, then why aren’t more gaming companies monetizing their content with ads? The biggest issue is that they have trouble targeting the right players and creating engaging ads that are valuable to their advertisers.
This is one excellent way that artificial intelligence can help. Artificial intelligence makes it easier for game developers to collect valuable data on their players and make sure they are giving relevant ads.
Letting players subscribe to better cheat codes or a VIP status for a flat fee
The most passionate players tend to spend the most money on their favorite games. They are most likely to spend money to purchase new lives or other in game services, which adds up quickly. This can work like the Ladbrokes promo code.
Costs could be rebalanced to help the most loyal players save more money. Instead of paying a lot of money every time they need a service within the game, they can subscribe to a flat monthly subscription that offers similar benefits.
Artificial intelligence is useful for both creating these subscription plans and ensuring the pricing is set properly. Predictive analytics models can gauge the fees players would need to pay to get the same revenue they did with the previous monetization models. These predictive analytics models could account for the fact that more casual players could be converted into regular fans by using these models to avoid the frustration of needing to pay so much for in game services. This could increase the base of loyal players in the long run, which would be a better monetization strategy.
Artificial intelligence can help players save money on their favorite games
Gaming is a very popular hobby, especially among young adults. It will be even more popular as consumers that played video games since childhood become a larger share of the global consumer base. These players want to make sure they don’t spend too much on their favorite hobby. The good news is that artificial intelligence technology is paving the way for new monetization strategies that will help them enjoy their hobby more frugally.