What is a game IP? 3 irreplaceable values of IP gamification
What is a game IP?
A game IP is a game brand with a distinct identity and commercial value. IP stands for Intellectual Property. Beyond the game a developer releases, it covers all the creative work around it: the game content, story, character design, world-building, spin-off products and more.
A successful game IP usually has a distinctive style and is easy to recognize. Players are far more loyal to and engaged with IP games than with ordinary game brands. That means a successful game IP earns more than revenue from the game itself. It can spin off all kinds of merchandise and services, extending the brand's reach and market value. In recent years, game IPs have become more and more important in the game industry, and creating a hit IP is now one of the goals game companies chase hardest.
3 business values of game IPs and IP gamification
Game sales and in-app purchases
A successful game IP can generate huge sales. For example, Grand Theft Auto V has sold more than 150 million copies worldwide and earned over US$6 billion. With value added from the rest of the IP, the overall benefit can be even larger.
Unlike paid games, many game IPs use a free-to-play model and earn revenue through in-app purchases or advertising. A successful game IP can generate huge income from in-app purchases. For example, Honor of Kings is free to download and earns through in-app purchases, yet its in-app revenue in 2020 still exceeded RMB 20 billion, making it one of the highest-grossing games in the world.
Merchandise sales
Game IPs on the market can spin off all kinds of merchandise, including toys and clothing. Merchandise sales can bring game companies a large additional revenue stream. For example, Pokémon merchandise sales have exceeded US$100 billion, making it one of the best-selling game merchandise lines in the world.
GameNobility's own title BarIsland is one example of a game IP. Besides developing the game itself, we released a co-branded mulled wine spice pack for winter, along with game-themed charms, keychains and more….
Game IP licensing
Game companies can license their game IP to other companies. Licensing gives game companies an additional revenue stream and helps the IP gain wider influence.
More platforms and channels for exposure mean greater commercial value and brand awareness. Developers can develop and use their game IP through licensing, partnerships and other arrangements to earn more diverse revenue and business benefits.
GameNobility turned the theme of Sunny Cafe into a novel of the same name. Players who wanted to learn more about the game's backstory gave it a warm response.
Film and TV adaptations
A game IP can also be adapted into films, TV series and animation. Adaptations attract more viewers and create new revenue streams for the IP. For example, Blizzard Entertainment sold the film rights to World of Warcraft to Legendary Pictures for US$2 million, a record price for a game adaptation.
Cross-industry IP collaborations and their business impact
Cross-industry IP collaborations create combined business benefits for a brand. Working with different industries lets a brand reach more customer groups and grow its influence, and these collaborations have delivered big results. In today's market, an IP's value goes far beyond its original cultural or entertainment role. It has become an important bridge connecting different industries and audiences. Through cross-industry collaborations, game IPs can extend their influence into much wider areas and bring significant business benefits.
Read more: IP gamification | How to choose the right game studio for your IP
Contact GameNobility now
Game IPs are an important part of the game industry, with value and potential that can't be ignored. Whether an IP moves from games into other fields, or from outside games into gaming, there are many ways to raise its commercial value. GameNobility offers game-related services including original IP games, IP gamification of illustrations and comics, music and sound effects, 2D illustration and design, and motion art. Contact GameNobility by filling in the form below!
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