By john 
The history of online game monetization reflects the broader evolution of the internet, player expectations, and global business models. Early online games Modal138 were expensive to maintain, requiring servers, support staff, and continuous updates. As a result, the earliest MMORPGs relied heavily on subscription models. Ultima Online, EverQuest, and later World of Warcraft charged monthly fees, ensuring consistent revenue while offering large-scale, persistent worlds.
This subscription model dominated the late 1990s and early 2000s. It established the idea that online games could operate as services rather than one-time purchases. However, as the gaming audience expanded, the industry began searching for more flexible and accessible monetization approaches. Players wanted to try games without committing to a monthly fee, while developers needed sustainable income to maintain ongoing content development.
The first major shift came with the rise of microtransactions. Asian online games—particularly from South Korea and China—introduced the free-to-play model supported by item shops. Players could download the game at no cost and purchase optional items, ranging from convenience tools to cosmetic upgrades. This model proved extremely successful in regions where disc-based games and subscription fees were less common due to economic constraints.
By the late 2000s, free-to-play had spread globally. Western developers began adopting hybrid models, blending optional microtransactions with premium content. Games like League of Legends demonstrated that free-to-play could coexist with competitive integrity. Meanwhile, MMORPGs such as Star Wars: The Old Republic transitioned away from subscription-only models in response to market demand.
Mobile gaming further accelerated this evolution. The widespread adoption of smartphones created a massive audience accustomed to free apps. This environment solidified free-to-play as the dominant online gaming model. Seasonal passes, cosmetic microtransactions, and loot boxes became common monetization tools, though loot boxes sparked controversy and regulatory scrutiny.
Today, live-service games use multi-layered monetization strategies combining battle passes, cosmetics, expansions, and optional subscriptions. While the landscape continues to change, the core idea remains: online games thrive when they evolve with player expectations and global accessibility.