2004 Web and Downloadable Games White Paper 

IGDA Online Games SIG 

III.  Business Models 

Although they have been gaining increased attention these days, neither web nor downloadable games 

are fundamentally new concepts in the game development world. Downloadable games are the older of 

the two models as they came into existence in the earliest days of connected PC's in the early  and mid 

80's, along with the file sharing capabilities of the BBS systems and other early Internet technologies. The 

younger sibling of Downloadable games, Web Games, sprang into existence 10 years later as companies 

such as Macromedia, Sun, and Microsoft provided technologies that could  plug in  to the popular Internet 

browsers and provide greatly enhanced rich media capabilities. This section primarily outlines the current 

business models associated with these products. Additionally, an attempt is made to compare and 

contrast these different models to provide a framework for decision making related to pursuing and 

executing these models. 

A. 

Business Overview 

There seems to be a tendency in the industry to combine  Web and Downloadable  games together 

whenever the discussion of  alternative marketing  or  casual games  arises, as if the two were somehow 

either synonymous or inseparable. The first step in understanding  Web and Downloadable  games 

business models is the realization that these two avenues represent two different choices, and they are 

each separate, distinct industries with distinct customer needs, distribution channels, success metrics, 

and technological parameters. The figure below contrasts the key differences in the two types of games. 

1. 

Web Games vs. Downloadable Games   The Differences 

Web Game Attributes 

Downloadable Game Attributes 

Optimal file size <500k 

Optimal file size <10MB 

Plays in a browser window 

Plays as a stand alone application 

Technological choices limited 

Unlimited technological choices 

Hardware independent 

Hardware dependent 

Online only 

Primarily Offline 

Single and Multiplayer  

Must have compelling single player 

Online community can greatly help retention  

Online community is minimal 

Can be monetized by online advertising/sponsorships 

Monetized directly through game purchase 

 Open  distribution 

A few big channels matter most 

Very high traffic is usually key to success 

Focused, highly qualified traffic critical 

Compelling gameplay is primary success factor 

Production value + compelling gameplay 

Gameplay depth not as important but helps greatly with 

Gameplay depth is very important 

retention 

Card/casino games have strong demand 

Card/Casino games have weaker demand  

2. 

Web Games vs. Downloadable Games   The Similarities 

Use the Internet as the primary distribution vehicle 

Audiences are relatively inexperienced with video games 

Successful games have extremely broadly appealing designs and are evergreen (high replay value) 

Successful games are extremely accessible and intuitive 

Some game concepts work well in both mediums 

3. 

Exploring the Models 

If there is one thing that the proliferation of the Internet has accomplished, it is that companies doing 

business on the web can monetize their products or services in an overwhelming variety of methods. With 

all the different ways companies developing and selling Downloadable Games and/or Web Games make 

money, a mechanism is needed to separate the good models from the bad. In other words, which 

techniques represent the core business models available in the space, and which can be executed for 

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