Overwatch 2: A Business Model Reboot

As the end of the month approaches, Blizzard will cease selling loot boxes for Overwatch, paving the way for the launch of Overwatch 2 and a significant overhaul of the game's business model in early October. Although it's not unprecedented for developers to phase out certain monetisation aspects of their live service games before shutting them down, the reasoning behind this move is clear: to avoid consumer backlash and regulatory scrutiny. In the case of Overwatch, loot box items will still be usable in Overwatch 2, but the new game won't feature a paid loot box system, with items instead being earned through gameplay. By shutting down loot box monetisation ahead of the launch, Blizzard sends a clear message to the existing playerbase that Overwatch 2 will do away with the unpopular loot crate model. This messaging campaign is crucial, given the game's status as one of the biggest remaining launches of the year and its potential to attract new players. The whole purpose of Overwatch 2 is different from most sequels, as it's designed to fix strategic errors made with the original game and transition the game to a new business model while it remains in live service. This is a challenging task, as it requires keeping existing players happy, attracting new consumers, and reassuring everyone that the new business model is an attempt to update the game rather than rescue it. The original Overwatch was a pay-up-front game, whereas the sequel will be free to download, with a new monetisation model that's more in line with the current season pass 'meta' for online and live-service shooters. The concept of season passes encompasses two different business models: a discounted pre-purchase plan for future DLC and a time-limited access token to gameplay modes, item rewards, and challenges. The latter is essentially a subscription model, with companies charging players for game time, either through a monthly subscription or a game time card. Games using season passes often pair them with additional monetisation through direct sales of cosmetic items, placing a hard limit on how much a player can spend. From the perspective of games appealing to large audiences, including teenagers and children, this is a positive development, reflecting the industry's shift away from making money from a limited group of 'whales' or high-rollers. The 'meta' will continue to evolve, with room for innovation in live service game monetisation. The season pass model isn't perfect, and future innovations will likely aim to address issues such as pushing out casual players and creating barriers to acquiring new players.