The Live Service Model Has Reached Its Expiration Date

The gaming industry is no stranger to trends and fads, with successful titles often inspiring a wave of copycats. However, what's less understood is that monetization strategies are also susceptible to these trends. The live service model, which encompasses games with ongoing support and revenue streams through battle passes and microtransactions, has fallen out of favor with consumers. Games like Suicide Squad: Kill the Justice League have been met with dismal receptions, with players expressing frustration over the live service model and its associated monetization strategies. This shift in consumer sentiment has left many publishers and developers scrambling to adapt. The live service model was once seen as a solution to the industry's revenue problems, but its limitations have become apparent. With the market becoming increasingly saturated, even successful live service games are struggling to retain players. The battle pass model, in particular, has become a point of contention, with players feeling overwhelmed by the numerous passes available and resistant to purchasing them. Publishers have attempted to bolt live service models onto games where they don't make sense, often with disappointing results. The failure of games like Babylon's Fall and Marvel's Avengers, as well as the struggles of established titles like Overwatch 2 and Destiny 2, demonstrate the need for a new approach. While some live service games continue to perform well, the market for this type of game appears to be exhausted. The industry must now seek new answers to the question of how to fund game development, as the live service model is no longer a viable solution. Ultimately, the market may need to grow, or development costs may need to shrink, as consumers can only bear so much cost per game, regardless of the monetization strategy.