Choosing a monetization model - Premium models
Updated: Aug 21, 2025
The relationship between engagement and purchase models
Regardless of your target audience or business model, success starts with engagement. Recently, insights were shared on how developers ignite engagement by connecting your apps to the right audience, including insights on app ranking and discovery mechanisms.
When users find valuable experiences they love, they spend more time in-headset. Value can take on many forms depending on your content and audience, but ultimately it is what drives longer, repeat sessions — or in other words, retention.
Driving engagement in premium apps
While there are many ways to measure interest in a game or app, one of the most direct ways is via purchases. Purchase behavior offers a macro view of how the market reacts to a product, and historical games industry data can show how users react to different pricing models.
Developers are building sustained success from increased spending on IAP and subscriptions across all business models, including free-to-play and premium paid apps. Premium paid titles are leveraging live-services and content updates to generate both engagement and revenue through add-ons, subscriptions, live events, and IAP.
For premium paid apps without live-services, the bulk of engagement and revenue is acquired upfront, typically within the first 30 days after launch. Both new sales and engagement drop after this period and are refreshed by sales and promotional periods, though they rarely see the same heights as the first month’s performance.

Up to 80% of a premium-only title's lifetime sales can occur in the first month, which is the period of highest engagement. The smaller lifts visible in the chart represent holiday sales, which attract new users to an established game.
These launch periods and seasonal lifts underscore the importance of effective marketing assets like trailers and cover art. To capitalize on seasonal spending patterns, we recommend leveraging creative A/B tests to measure the impact of your app’s descriptions, key art, trailer, and screenshots in the Meta Horizon Store.
The addition of predictable downloadable content (DLC) can significantly extend a game’s pipeline by providing frequent reasons for players to re-engage. This content can align with existing sales and seasonal strategies to maximize impact. While the majority of engagement and revenue still occurs within the first month for these games, they stay relevant for much longer, often through their first year.

While most revenue is generated in the first month, releasing DLC within three months of launch can recapture 30-50% of your initial audience.
As a whole, developers have found that investing in IAP generates value by providing new types of gameplay, personalization options, and environments that drive engagement. Over time, a consistent and relatively rapid release cadence can play a crucial role in sustaining value with your audience.

Games as a Service are generally not front-loaded on revenue. Instead, they are positioned to support seasonal events and sales, often driving the highest yearly revenue during the winter holiday period.
Games with a live service element often have a slower start, typically due to a smaller initial marketing push. However, they have a significantly more robust tail, extending player engagement and revenue for months or years — particularly during holiday periods when potential customers are more interested in playing and purchasing games. A regular release cadence of bi-weekly or monthly new content often results in less drop-off between major seasonal events.
“Initially, updates were shipped every 1-2 months, focusing on polish and completeness. Over time, internal processes were refined to allow for more agile releases, now aiming for significant content updates every two weeks.”
— Squido Studio
DigiGods: Mystic Builders (free-to-play)

DigiGods leverages a consistent mix of IAP and DLC updates to keep users engaged with fresh content and gameplay.
Understanding price models
Choosing the right pricing model for your business begins with understanding the five main options: Premium, Premium+, Free-to-Start, Free-to-Play, and Subscription. Each of these models has distinct advantages, disadvantages, and purchase drivers that are worth considering before making a selection.
Common pricing models and their purchase drivers
Here are the common pricing models and their purchase drivers:
A Premium pricing model is the most traditional and straightforward approach. This model involves releasing the game at a set price without additional forms of monetization like DLC or microtransactions. While this model does not offer repeat purchases, interest in the game can be revived during sales and promotions. Developers and creators can also release free DLC, skins, or seasonal content to spark interest after the game’s launch.
- For players, the value proposition is clear and easy to understand. They pay once and get a complete sense of ownership over the game.
- For developers, this model avoids potential negative perceptions of other monetization strategies. Revenue is easier to forecast, and there is no obligation for post-launch content.
- For players, a key disadvantage is being required to purchase the game before experiencing its quality. Additionally, some players may feel Premium-only products are not competitive in volume of content compared to live service games.
- For developers, the primary disadvantage is that the game’s success is almost entirely determined by its launch sales. A poorly timed or mishandled launch cannot be easily salvaged, and the game will struggle with long-tail monetization.
The largest purchase driver for a Premium game is the quality and fun factor of the experience itself, potentially boosted by an existing franchise, IP, or popular genre. Three strong ways to drive purchases are:
- Leveraging fear-of-missing-out (FOMO) due to spoilers
- The popularity of the franchise
- The overall price point of the game

I Expect You To Die 3 is a Premium VR title that regularly price pulses for sales and relies on the popularity of its franchise to create FOMO for its players.
Pricing is a critical decision for Premium titles. Pricing a game too high risks alienating potential players and can negatively affect launch sales, while pricing it too low can lead to unoptimized revenue and complicate future sales and promotions. Premium-only games live and die by their launch sales, making this initial period the most critical measure of success.
The Premium+ model also requires an upfront purchase of the game, but it expands on the Premium model by offering a broad range of post-purchase monetization. This can include DLCs, expansions, new gameplay modes, additional characters, skins, emotes, animations, and much more.
The Premium+ model’s popularity grew with successful titles from the late 2000s. Games like Destiny, Monster Hunter World, and Street Fighter 6 offered premium microtransactions (MTX) on top of a base price and DLC, which paved the way for successful VR titles to adopt a similar model.

Beat Saber at a $29.99 price point offers many microtransactions in the form of music packs or individual songs, allowing players to expand their music library with chart-topping songs from world-renowned artists.
Many successful Premium+ games utilize a Games as a Service (GaaS) model, using seasonal systems and the game’s ongoing content updates to keep players engaged. It’s important to consider that while this model offers a wide range of post-purchase monetization, the base game must be purchased first in order to access these features.
How developers generate value with DLC
Launching DLC enables developers to re-engage existing users and keep their experiences relevant. Unlike smaller in-app purchases (IAP) like cosmetics, DLC typically includes larger content updates downloaded to a user’s headset, such as new levels, storylines, or significant new features. These larger content drops deliver a fresh yet familiar experience and can generate upticks in playtime and long-term engagement.
“For our player community, these [DLC and content updates] bring the game to life every week and give them an evergreen curiosity about what’s happening. The DLCs and other content drops drive not only engagement and referrals, but also PR, and they have become synonymous with how people talk about and interact with the game.”
— Mighty Coconut

Walkabout Minigolf offers 20 different add-on options that drive retention and provide additional sources of revenue.
Promoting your content updates on social media can spark off-platform interest that leads to increased engagement with new and returning users.
- For players, post-launch purchases are presented as optional, which creates an easy value proposition and often leads to a more positive view of microtransactions.
- For developers, this model provides strong post-launch monetization potential with higher attach rates for DLC and other paid offerings.
Disadvantages of Premium+
- For players, the model still requires an upfront purchase before quality is assured, which can dissuade users accustomed to F2P business models.
- For developers, this hybrid model has a smaller top-of-funnel than F2P and can trigger negative reactions from players who expect a pure Premium experience.

Successful Premium+ titles can generate impressive long-tail revenue by sustaining player interest for months or years through Battle Passes, cosmetics, and seasonal events.
Premium+ purchase drivers
The initial purchase drivers for Premium+ games are the same as for Premium titles. However, Premium+ has the added benefit of post-launch purchase drivers, which can include:
- Seasonal Content can include new characters, customization options (like cosmetics skins and emotes), and consumables for a fixed price.
- Content Expansion can take the form of a single paid DLC or a season pass that provides a series of smaller, episodic content drops.
- Customization options often include cosmetic skins, emotes, and lobby avatars.
- Consumables/Quality of Life improvements can include in-game currency, crafting materials, inventory space expansion, XP boosts, or paid level skips to accelerate Battle Pass progress.
Less common pricing models and their purchase drivers
A Subscription-based model often requires a game purchase as well as a recurring fee to maintain access to the game. Some games may also offer additional monetization on top of the subscription. Other titles combine models, offering free-to-play sections with an optional subscription that unlocks more content, as seen in the game VAIL.

VAIL offers a free-to-play experience alongside three optional subscription tiers for dedicated players.
Still, other games are structured to begin as Free-to-Start and then transition to a subscription-based model to unlock the rest of the features, as seen below.

FitXR starts with a Free-to-Start demo and ends on a Subscription trial to access the rest of the application’s content.
Subscription purchase drivers
Subscription games rely heavily on game quality and the social experience to entice players into renewing their monthly subscriptions. In addition to the core experience, many also drive purchases with optional customization and consumable items. Common purchase drivers include:
- Customization options can include cosmetic skins, outfits, accessories, hairstyles, mounts, and companions.
- Consumables/Quality of Life improvements may include in-game currency, crafting materials, inventory space expansion, XP boosts, or character name changes.

Final Fantasy XIV allows players to purchase cosmetics such as skins and accessories, along with quality-of-life features like the ability to skip through legacy content or change their character’s name.