The global games market remains a financial titan, projected to reach nearly US$189 billion in revenue this year. While North America and Europe represent only 20% of the world’s 3.54 billion players, they are an economic powerhouse, driving an astounding 46% of all global spending.
For years, the industry’s growth in these lucrative Western markets was fueled by a steady influx of new consumers. However, a new report indicates a fundamental shift is underway. With the growth of new paying players slowing to a near plateau, the central challenge now is how to increase revenue from paying players who are already part of the ecosystem.
This change signals a maturing market where simple acquisition is no longer a sustainable primary goal. According to a whitepaper published on August 12, 2025, by gaming data firm Newzoo and monetization platform Tebex, studios must pivot their focus from attracting new spenders to deepening their relationship with existing ones.
The report, which analyzed player behavior and payment trends, provides a clear directive: evolving monetization strategies are essential for driving both value and engagement in this new landscape.
For tech enthusiasts and gaming professionals, this transition is not just a minor adjustment but a strategic realignment. It requires a deeper dive into the psychology of player spending, a nuanced approach to regional preferences, and an embrace of diverse monetization models. This article breaks down the report’s key findings to provide a clear roadmap for studios aiming to thrive by building more value for and deriving more value from their dedicated player communities.
The New Imperative: From Acquisition to Retention
For years, the formula for success in Western gaming markets seemed straightforward: attract more players, convert more payers. That paradigm is now being challenged by market saturation. The Newzoo and Tebex report projects a compound annual growth rate (CAGR) for paying players of just 1.1% in North America and 3.1% in Europe between 2023 and 2027. These figures make it clear that the pool of new spenders is not expanding at the rapid pace it once was.
This slowdown forces a strategic pivot. The value of the existing player base has never been higher, as North American gamers spend an average of $325 annually. Since these established markets contribute nearly half of all global gaming revenue, retaining and better serving these high-value players is paramount.
The focus must shift from pure growth to enhancing player lifetime value (LTV). This involves creating compelling reasons for current players to continue investing their time and money, which is the most effective way to increase revenue from paying players in a stable market. This shift is reflective of broader industry trends that show maturing digital markets often move from acquisition-focused models to retention-based ones, a pattern seen across many of the latest tech trends in 2025.
Understanding Player Spending Motivations
To effectively monetize an existing player base, studios must first understand what drives them to spend. The report reveals distinct motivational differences between North American and European gamers, underscoring the need for tailored player monetization strategies rather than a one-size-fits-all approach.
In North America, spending is largely driven by the desire for unique experiences and self-expression. A significant 34% of players spend money to unlock exclusive content, while 29% are motivated by character customization and personalization options. This suggests that North American audiences are receptive to premium offerings that allow them to stand out or access parts of the game others cannot.
Conversely, European players exhibit more value-conscious behavior. Their spending decisions are heavily influenced by deals and offers, with 28% prioritizing sales. Other key drivers include paying for an ad-free experience (21%) and spending to play with friends or family (23%). For this market, discounted bundles, subscription models that offer perceived value, and social-focused content are likely to perform better.
A Deep Dive into Monetization Models
The specific types of in-game purchases that players make also vary significantly between the two regions. These preferences offer a granular look at which video game revenue models are most effective in each market. The evolution from single-purchase premium games to the current landscape of free-to-play titles with live services has introduced a complex array of monetization options, from Investopedia.
In North America, players show a balanced interest in several models:
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- 27% invest in content packs, power-ups, and in-game currencies.
- 24% purchase subscriptions.
- 23% buy battle passes.
European gamers, on the other hand, show a clearer preference for direct content and currency:
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- 21% spend on in-game currencies and another 21% on content packs.
- 20% purchase subscriptions.
- 18% buy gear and time-saving features.
While subscriptions are popular, their growth has stabilized. Mat Piscatella, a leading video game industry analyst at Circana, noted that subscriptions now account for a relatively small portion of total spending, reinforcing the need for a multi-faceted approach to increase revenue from paying players.
“Subscription growth has flattened, and sub services on console and PC platforms accounts for only 10% of total video game content spending in the US.” ~ Mat Piscatella
These models are powered by sophisticated back-end systems that manage everything from virtual economies to player progression. Understanding the core technologies of 2025 that enable these flexible and persistent online experiences is key to implementing them successfully. The data shows that microtransactions are a massive revenue driver, accounting for 49% of PC and 52% of console revenue in North America, and 42% of PC and 51% of console revenue in Europe.
The Dominance of In-Game Purchases by Genre
Player spending is not just tied to region but also heavily influenced by game genre. The report highlights which genres are the most effective vehicles for in-game purchases in the West.
In North America, shooters are the top-performing genre for microtransactions, followed by role-playing games (RPGs) and puzzle games. This aligns with the region’s interest in customization and exclusive content, as shooters often feature cosmetic skins, and RPGs offer extensive content packs and power-ups.
In Europe, sports games lead the pack, with shooters and RPGs following closely. The popularity of sports titles like EA Sports FC likely drives spending on player packs and in-game currency. For both regions, the mobile gaming market is almost entirely dependent on in-game revenue, with monetization making up nearly 100% of sales. As gaming continues to expand across platforms, with efforts to bring experiences like Xbox games on Windows ARM devices, these genre-specific monetization trends will likely extend to new audiences.
Unlocking New Revenue Streams
Beyond refining existing models, the report suggests that studios can increase their average transaction value (ATV) by embracing new payment technologies. Offering alternative payment methods, such as Buy Now Pay Later services and cryptocurrency, could open the door to larger purchases without hurting overall transaction volume. This approach acknowledges that modern consumers expect flexibility in how they pay for digital goods.
Studios can also look to more established methods to increase revenue from paying players. Strategies like offering tiered special editions with exclusive digital content, creating compelling downloadable content (DLC) that expands the game world, and implementing season passes that bundle future content at a discount are all proven ways to generate additional revenue from an engaged player base. These tactics directly cater to the desire for exclusive content and ongoing engagement that is particularly strong among North American players.
Practical Impact
The key takeaway for gaming studios and tech professionals is that the era of relying on a constant stream of new spenders is drawing to a close in Western markets. Sustainable growth now hinges on a deep, data-driven understanding of the existing player base.
Success will be defined by the ability to tailor player monetization strategies to specific regional motivations, whether that’s offering exclusive cosmetic items in North America or value-packed bundles in Europe.
Studios that adapt by diversifying payment options, creating compelling post-launch content, and aligning their in-game offerings with player desires will be best positioned to increase revenue from paying players and achieve long-term financial health.
Frequently Asked Questions (FAQ)
1. Why are gaming studios focusing more on existing players?
With the growth of new paying players slowing down in major Western markets like North America and Europe, studios are shifting their focus. The new goal is to increase revenue from paying players already in their community, which is a more sustainable strategy in a maturing market.
2. What are the most popular types of in-game purchases?
In North America, players favor exclusive content, character customization, subscriptions, and battle passes. In Europe, players prioritize in-game currencies, content packs, and items that offer good value or save time.
3. How do subscriptions work in video games?
Game subscriptions typically offer players access to a library of games or provide ongoing in-game benefits, such as exclusive items and currency, for a recurring fee. This model provides studios with a predictable revenue stream and players with continuous value.
4. What is a “freemium” game economy?
A freemium (free-to-play) game is free to download and play, with revenue generated from optional in-app purchases. These purchases can include cosmetic items, in-game currency, or gameplay advantages, and they form the core of the game’s economy.
5. Are microtransactions necessary in modern games?
While not all games use them, microtransactions have become a primary revenue driver, especially for free-to-play and live-service games. They allow for continuous revenue generation after a game’s initial launch, funding ongoing development and support.