We have a used sample size of 55 publicly released Steam sales figures to test the VGI unit sales estimates
At an overall level, the VG Inisghts algorithm overestimates Steam games units sold by +3%
At individual game level, VGI estimates were in the +-15% margin of error for 84% of the games
We have officially released a long requested feature – Player Overlap. You will now be able to see what other games players play for majority of games on Steam.
Using the example of NBA 2K23, we can now see that NBA 2K players are more likely to also play other NBA 2K games (not surprising). But they’re also 20x more likely to play PGA Tour 2K23 (because there was a bundle c. 1 year ago). Interestingly, they are also much more likely to play Madden than your typical Steam player. That is mostly due to US focused playerbases for both games.
Firstly, we’re showing overlap metrics for both lifetime sales (LTD) as well as last month’s active users (MAU).
LTD units sold overlap shows any Steam player who owns both games.
MAU overlap shows any Steam player who has played both games in the last 30 days.
Overlap itself shows actual # of people who own both games. Eg 394k people on Steam have both NBA 2K23 and 2K24.
Overlap % shows what % of all NBA 2K23 players own other games. Eg 18.4% of NBA 2K23 players have also bought NBA 2K24.
Overlap Index, perhaps most important of the 3, shows how many times more or less likely an owner of a game is to play other games. For example, an average NBA 2K23 player is 30x more likely to own NBA 2K24 VS your typical Steam player.
This is a new feature and still in its Beta phase. We’ve tested it extensively, however, there might still be edge cases to iron out. We’re confident that it is directionally right for majority of games, but we will continue to monitor it and tweak where needed. Note that all of these metrics are estimates based on sample sizes and therefore should never be treated as 100% accurate.
Methodology
Overlap % – We look at a large sample size of Steam players to see what games they play. In the NBA 2K23 example. we look at what % of players of NBA 2K23 in our sample play, for example, NBA 2K24. This is used to calculate the overlap %s.
Overlap – We then apply the overlap % to particular game’s (in this case, NBA 2K23’s) lifetime sales.
NOTE that because of that, the absolute overlap # for NBA 2K23 with NBA 2K24 does not match NBA 2K24’s overlap # with NBA 2K23. However, they are in the same ballpark and directionally similar. This is a fluke of this methodology and we will be looking to improve this going forward.
Overlap index – We take the NBA 2K23 overlap % with NBA 2K24 and divide it with Global NBA 2K24 owners %. In this instance, we know that 18.4% of NBA 2K23 owners own 2K24, but only 0.61% of all Steam players own NBA 2K24.
The Overlap Index is therefore 18.4%/0.61%=30.2
In this example, we can see that these overlaps also work for very new games. The MAU overlap also exposes how popular games tend to overlap with other recently more popular games. For example, Fallout 4 is the 3rd most popular game to be played by Helldivers 2 players in May 2024 as a result of the recent Fallout TV show success. Other recent release, Content Warning also makes it to the top 10.
This is a feature currently only for our Business Subscribers.
It’s designed to help larger studios and publishers to better understand their own playerbase. It can be used to optimize marketing targeting, to understand cannibalization and relative market shares between competitive games and to see what type of game elements and features your players might enjoy more.
Reach out to us at sales@vginsights.com to learn more!
TLDR: The Fallout TV series made Bethesda an estimated 80 million dollars in game-related revenue and license fees with just one season. The TV show revitalised interest towards the franchise, boosting game sales and in-game spend. The potential lifetime value of this to Bethesda, the Fallout IP holder, is hundreds of millions of dollars.
Transmedia is a growing trend in the games industry, though it’s not a new concept. Companies like Disney have long used it, spreading their IP across films, TV shows, comics, toys, theme parks, and video games. Essentially, transmedia maximizes IP value by expanding into new platforms and formats, attracting new fans, and engaging existing ones.
Book to Game
Some amazing games began as books. The Witcher series, starting as a book by a Polish author, found its first global audience through video games and then expanded further with a popular TV show. The Lord of the Rings and Harry Potter also started as books, moved to TV, and then became games.
Rationale: Some book worlds are so detailed that they can quite naturally be transitioned to games. From a commercial perspective, leveraging an existing fan base mitigates downside risk and there is upside potential to expanding the IP to new audiences.
TV to Game
Another successful example of franchise expansion has been existing TV franchises licensing the IP to video games. Disney has some of the earliest examples of that through Mickey Mouse, but also some of the more recent ones through licensing Marvel and Star Wars IPs.
Rationale: Creating games based on existing TV IPs is unlikely to reach many new audiences. However, it offers an attractive additional monetization mechanism for the IPs targeting younger audiences who are often gamers anyway.
Game to TV
Historically, expanding game IPs to TV has been less successful. Even five years ago, many believed it didn’t work because games are niche, with hardcore audiences, and their interactive nature is hard to translate to film. Examples of failed attempts include Max Payne, Warcraft, Gran Turismo, and Assassin’s Creed, which had potential but fell short commercially and critically.
However, the last 5 years has seen successful transmedia examples. The Last of Us was a masterpiece, loved by critics and audiences alike. Nintendo IPs like the Super Mario Bros Movie and Pokémon Detective Pikachu were commercial hits. Both Dota and League of Legends have released successful anime TV series. Most recently, the Fallout game franchise’s TV series on Amazon was a major success and positively impacted the games.
Rationale: A successful TV show can re-engage existing players (useful for live service games) and expand the market of interested people, offering significant upside for the IP holder by boosting player engagement and attracting new audiences.
Firstly, it is important to understand that Bethesda, the game’s IP owner and Amazon, the producer and TV streaming platform owner, are two separate entities that benefit from this TV show in very different ways.
The impact on Amazon is clearer and easier to capitalize on. TV streaming services release content to attract new audiences and retain existing ones. While retaining viewers often means providing a lot of content, attracting new audiences requires big hits like the Fallout TV series.
Here’s what we know about the Fallout TV show viewership:
It’s clearly been successful for Amazon, even if we can’t put exact revenue or profit numbers to it. What about Bethesda, the IP owner?
Methodology – Each of the revenue opportunities for Bethesda is calculated by analysing the uplift in Fallout game metrics at the time of the TV show’s launch and forecasting the trend forward to September, when we estimate most of the upside has been realized. We have only considered the impact to Fallout 4 and Fallout 76 here. We don’t cover Fallout Shelter as we lack the data behind it, so we’re likely underestimating the total impact by c. $5-10M. There is additional upside from other games, but at much lower magnitudes. The metrics are estimated using data from the Video Game Insights platform. For Fallout 4 units sold, it looks like this:
Cost – Bethesda likely incurred very little expense, as Amazon probably covered most of the marketing, production, and distribution costs. This means the revenue uplift for Bethesda is almost pure upside.
There are four main revenue uplifts to consider:
Here’s what we think the value of each of these buckets looks like:
Increased game sales – We estimate that the TV show will generate an incremental c. 2M Fallout 4 game units sold and c. 1-1.5M Fallout 76 units. That’s roughly $35-40M in revenues post platform fees (taking promotional discounts into account).
Higher in-game spend in Fallout 76 – Daily active users of FO76 increased from c. 100-200k pre show to peaking at 1M DAU during the show’s launch window across all game’s platforms. This will likely slightly dilute the average revenue per daily active used (ARPDAU) as the new players tend to be more casual. We estimate the increased engagement from old and new players to deliver c. $10-15M in incremental in-game revenues for FO76.
Licensing fees – It is very hard to put a price to that without knowing the details, but typical game and physical goods IP license fees tend to be c. 10-20% of the revenue generated. We also know that Amazon bought the global rights of the Lord of the Rings for $250M or c. 25% of the 1st Season’s budget. Given the $150M budget for the Fallout TV show, it’s not unreasonable to assume c. 20% of the budget was on IP licensing. That would give Bethesda a c. $30M licensing fee.
Overall, the total value from Season 1 of the show that Bethesda will get is likely c. $80 million.
You might think this is a stupid question. However, we’re talking about Bethesda (acquired for $7.5bn), a company that is owned by Microsoft ($200bn annual revenue). In this scale, $80M means a 0.05% uplift to Microsoft revenues, which is ridiculous to think about.
Perhaps that’s not the right comparison though. Let’s compare this to a major AAA game launch like Fallout 4. Fallout 4 sold over $750M worth of games in its first day and we estimate the lifetime earnings have been closer to $1.5bn across all platforms. That’s not atypical for a major AAA title. In this context, the Season 1 revenue uplift of c. $80M to Bethesda is c. 5% of total game sales, still relatively small.
However, this analysis doesn’t consider several factors.
We estimate that the full value of the Fallout TV series to Bethesda is in hundreds of millions in extra revenue. Importantly, this is a very low risk, low-cost revenue uplift opportunity.
Bethesda did support the TV show launch with a new patch on PC, Xbox and PlayStation versions of Fallout 4. However, as far as new content goes, it’s really quite little. You could have imagined Bethesda aligning the TV show launch with a major downloadable content (DLC) or, better yet, a new game launch. Fallout 4, the last major single player title in the franchise is almost 10 years old, after all. No doubt they will be doing more to align content with next seasons now that they’ve seen the positive reception.
Hater’s gonna hate and hypers gonna hype. Cross-media opportunities provide a low-risk way for game IP holders to boost revenue, though the upside seems capped even in the most successful cases.
We predict many game IPs will be adapted for film and TV in the coming years. With slower growth in the games industry, executive teams will find these opportunities too attractive to ignore.
We have significantly increased the accuracy of our player insights – average and median playtime as well as the country split of units sold.
Going forward, we will be able to also start showing how playtime and country splits change over time.
This is also a precursor for the long anticipated Player Overlap feature, launching in the coming weeks.
Free to play (FtP) has been a standard in the mobile games industry for over a decade now. In the PC and console world it became a bigger topic around 2017-18 when Fortnite took the world by storm. Suddenly, every large publisher needed to have their own FtP title.
But free to play really started at a meaningful level much earlier, on PC. There are the classics outside of Steam – Runescape (2001), Wolfenstein: Enemy Territory (2003), Silkroad Online (2007) as well as examples on Steam – Team Fortress 2 (2007), DOTA 2 (2013) and so on.
Which brings us to the state of free to play games on Steam in 2024. This report explores the popularity of FtP within Steam and looks at the top games over time.
You’re not going to believe trend number 4! (just baiting you to read the report)
Download the free PDF instantly without any email sign-up required: State of free to play on Steam in 2024
We have summarized the free to play market trends in 6 points
1. Free to play games capture over half of the player engagement on Steam
2. Counter-Strike and DOTA 2 have been leading the engagement charts for over 10 years
3. FtP games are very concentrated – top 25 FtP titles capture 88% of all FtP player engagement
4. Only a few new FtP hits launched in the last 4 years – it is getting crowded as older titles remain popular
5. Premium games at $20-$40 price point with live service elements might be an attractive middle-ground
6. United States, China and Russia are critical for the FtP titles as they make up nearly 40% of all FtP players on Steam
Download the free PDF instantly without any email sign-up required: State of free to play on Steam in 2024
Video Game Insights provides free articles and market reports as well as a comprehensive data and intelligence platform for developers, publishers and investors. Use the menu on the left to explore our tools or search for any game or games company in the search bar above to get started now.
Business subscribers will now find 4 new groups of columns they can add to the tables – units, revenue, # of promos and average CCU by year.
Users can now easily see and compare how games have performed over the years.
All of the data is available as Excel downloads for the Business subscribers as per usual.
This will significantly improve the ability to do custom research and analysis with our datasets. We’re excited to hear how you’re using the new capabilities to drive business performance.
We’re pushing a major new update to the platform – wishlist estimates.
All Indie and Business subscribers will now be able to see how many outstanding wishlists any game has.
This includes:
You can now see the biggest wishlist gains in the Top Charts, just like you already do for units sold, CCU and other metrics.
Outstanding wishlists now appear in the individual games pages AND historical trends (but only starting from March 6th 2024 right now).
We’ve tested our estimates, and for majority of games, the accuracy tends to be in the same +-15% margin of error that we also aim achieve for our other metrics.
We’ll be publishing public test results soon!
Meanwhile, we are collecting datapoints to continue testing and refining our estimates. If you see large discrepancies, please do reach out!
We’re thrilled to announce an update to the VGI platform that’s set to redefine your data interaction experience. Our tables have undergone a significant transformation, now featuring a more modern design. With customisable tables and streamlined design, we empower users to explore information in a more personal and engaging way.
One key update we’re excited about is the ability to choose what data you see. At the heart of this update is a new icon located at the top of our table. A simple click on this icon unveils a dialog box, granting you the ability to select the columns you wish to view. Your preferences are saved and automatically applied on every visit to the page.
We understand everyone has different needs when looking at data. Whether you’re interested in the latest game releases, pricing, rating or reviews, our platform now enables you to streamline your data for a faster, more efficient, and personalised experience.
Check out the updated tables on the VGI platform and see how easy it is to adapt your data view. Give it a go and let us know what you think!
Stay tuned for more updates and features designed to improve your VGI experience.
We’ve released something you’ve long requested for – filters for genre analytics!
Genre analytics is a tool that allows players to quickly see which sub-genres over- and underperform in the market. These new filters allow you to narrow down the pool of games being looked at.
Say you’re an indie developer thinking of genres to focus on for your new game.
You’d go to genre analytics and pick the following filters:
This will leave you with over 8000 games in the comparison set and give you a picture that looks something like this:
Open world survival craft, colony sim and 4x games dominate that landscape. Say you like the idea of colony sims. Let’s dig deeper and add that as a filter.
From here, we can tell that survival element of colony sims (unsurprisingly) makes huge difference to games of this subgenre.
Exciting news for our users! We’ve launched Competitive Maps, a new feature on our Competitive Insights page. It offers a thorough analysis of games, comparing their market performance in sales, revenue, player engagement, and more.
Key Features:
Benefits for All Users:
Competitive Maps is your new ally in navigating the competitive landscape of the gaming industry. Start leveraging this feature to sharpen your market strategy and decisions.