Pixel P&L: Inside the Success and Controversy of F2P Games

Good morning. It’s Monday, 14th October. Today’s feature examines the rapid rise of free-to-play (F2P) games, which has completely dwarfed premium play-to-play games in terms of revenue. While these games attract millions with no upfront cost, hidden expenses through microtransactions raise concerns. We explore how this model reshapes the gaming landscape, blending accessibility with behavioral tactics that keep players spending.

We also report on Microsoft’s plan to sell games on Android devices later this year, Call of Duty’s new AI-driven anti-toxicity measures and more.

If this is your first time reading this, sign up here.

Our latest feature explores the rise of free-to-play (F2P) games and the hidden trade-offs behind their massive success. What started with pioneers like RuneScape and MapleStory has evolved into a global phenomenon, with 2021 revenues from F2P titles hitting nearly $100 billion. The appeal is obvious: high-quality gaming experiences without upfront costs, enticing millions to dive in. But the true cost emerges over time—through microtransactions, battle passes, and endless cosmetic upgrades designed to keep players hooked and spending.

Developers are now mastering behavioral psychology, crafting games to foster both engagement and frustration, subtly nudging players toward in-game purchases. Meanwhile, traditional buy-to-play titles like Cyberpunk 2077 struggle to keep up, facing dwindling revenue after launch spikes. As even major publishers pivot toward the F2P model, the gaming industry’s landscape is shifting—blurring the lines between entertainment and exploitation.

Is the F2P revolution empowering players with greater access, or turning games into monetization machines? In this feature, we unpack the strategies driving this trend, the psychological toll on players, and what the future holds for gamers navigating these increasingly complex ecosystems. Dive into our full article to explore the true impact of this free-to-play takeover.

Microsoft is expanding its mobile gaming footprint with plans to sell titles directly through its Xbox App on Android later this year. The announcement came via a post on X from Xbox president Sarah Bond, who revealed that users will be able to purchase and play games through the app starting in November. Specific titles have yet to be confirmed.

This move is part of Microsoft’s broader push into mobile gaming, although it remains separate from the company’s anticipated mobile app store. Microsoft had initially planned to launch the standalone store this summer, featuring first-party games like Candy Crush and Minecraft. However, Xbox head Phil Spencer hinted in December that the project is being developed with the involvement of unnamed partners, suggesting a potentially larger marketplace beyond the Xbox app.

Bond connected the Xbox app’s new game sales feature to a recent U.S. court ruling that opens Google Play to rival app stores.

The 2nd Edition of the Indian Gaming Convention (IGC 2024) will take place on October 14-15 at the Taj Palace, New Delhi, featuring speakers from Meta, Google, Lumikai, Nodwin Gaming, JioGames, and a Secretary from the Ministry of Information and Broadcasting amongst other prominent stakeholders. The event will include a Main Stage Arena with curated content, live masterclasses, an exhibition arena, networking opportunities, and the launch of a gaming report with industry statistics.

Interested in attending? We are giving away a limited number of Silver Passes—reply to this email to secure yours.

PUBG MOBILE Partners with Sony’s ‘Venom: The Last Dance’ for Special In-Game Event

PUBG MOBILE is collaborating with Venom: The Last Dance, the final installment in Sony Pictures’ Venom trilogy, to introduce exclusive in-game content starting October 18, 2024. Players will gain access to new features inspired by the Marvel anti-hero, including a Black Symbiote Arm, Symbiote Warhorses, and Symbiote Clusters, along with opportunities to earn rare themed rewards throughout the event. The partnership highlights PUBG MOBILE’s strategy of leveraging major entertainment franchises to enhance player engagement, following similar collaborations in the past. 

ESL FACEIT Group Unveils Saudi Arabia-Exclusive Esports Tournament

ESL FACEIT Group has launched the ESL Saudi Challenge, a tournament series open to gamers based in Saudi Arabia, marking the first time an ESL-branded event will be held in the country. The inaugural competition, featuring Overwatch 2, will run from October 18 to December 7, beginning with open qualifiers and concluding with playoffs and a grand final at Riyadh’s VOV Gaming venue. With a $20,000 prize pool, the event aims to showcase local talent and attract global viewership, reflecting Saudi Arabia’s growing ambitions to establish itself as a major player in the international esports scene.

Call of Duty Expands Anti-Toxicity Measures Ahead of Black Ops 6 Release

Activision reported significant progress in curbing toxic behavior across Call of Duty titles, with a 67% drop in repeat voice-chat offenders since June and a 43% reduction in exposure to disruptive voice chat since January. Enhanced text and voice moderation tools, currently active in Modern Warfare 3, will be implemented for the launch of Black Ops 6 on October 25. The AI-powered voice moderation system, available in multiple languages, will expand to include French and German at launch. Players must also acknowledge the game’s Code of Conduct when accessing multiplayer modes, reflecting Activision’s push to create a more positive gaming environment.

Former Disco Elysium Developers Launch Two New Studios

Developers behind the acclaimed Disco Elysium have formed two new studios. In the UK, Longdue has been established with around a dozen staff, including members who worked on Disco Elysium and its unreleased sequel, alongside talent from Bungie, Rockstar, and Brave At Night. The studio’s team includes narrative director Grant Roberts.

Meanwhile, a separate group of former employees has launched Dark Math Games, a 20-person studio working on a spiritual successor to Disco Elysium. Led by Timo Albert, a motion graphic designer from the original team, Dark Math’s debut project, XXX Nightshift, is described as a science-fiction detective RPG featuring innovative mechanics and a dynamic companion system.

Grand Theft Hamlet, an innovative documentary shot entirely within Grand Theft Auto 5, is set to hit streaming and theaters in 2025. Directed by Sam Crane and Pinny Grylls, the 89-minute film follows two actors struggling to stage Shakespeare’s Hamlet during the height of the COVID-19 pandemic. As lockdowns keep theatres closed, the duo channels their frustrations into GTA Online, exploring the virtual world through stolen cars, violence, and moments of reflection amidst meadows and cityscapes.

The film was crafted using only GTA 5's in-game phone camera, capturing close-ups and sweeping cinematic shots that blend chaotic gameplay with emotional depth. Critics have praised Grand Theft Hamlet for its originality, earning it top honors at this year’s SXSW documentary competition. Mubi, the film’s distributor, has confirmed the documentary will be available on its platform and in theaters next year, with a U.K. premiere slated for October 15.

According to the filmmakers, the project reflects on how digital spaces can become new stages for ancient stories, questioning what storytelling can achieve in virtual worlds. Rockstar Games, the creator of GTA 5, has yet to comment on the documentary's success, but its unique take on blending gaming with theatre continues to draw attention across the festival circuit.