Gaming innovation is accelerating, reshaping both how games are monetized and how they are made. As new commercial models emerge, and artificial intelligence reduces production costs, gaming companies, brands, and investors need to understand how the economics of the industry are evolving.
In this video series, Partner Jon Wakelin explores two critical questions:
Where could the gaming industry see innovation and evolution?
In this video, Jon discusses innovation in the gaming industry, highlighting, in particular, the rise of in-app purchases of real-world goods and services on platforms such as Roblox and Grand Theft Auto Online. This in-game e-commerce leverages moments like waiting in lobbies or loading screens to present targeted offers, using player preferences and bulk discounts to make purchases more appealing and potentially cheaper than elsewhere. The approach allows users to buy real items without leaving the game, marking a significant evolution in how commerce integrates with gaming experiences.
How is artificial intelligence impacting the gaming industry?
In this video Jon explains that artificial intelligence is significantly reducing the cost of AAA game development by automating tasks like asset creation, storyline development, and level design, potentially lowering production budgets from $300 million to as little as $50–100 million, which could allow savings to be passed on to players and reshape the industry's economics.
How Altman Solon can help
As gaming becomes more complex and capital-intensive, companies must continuously adapt product strategies, monetization models, and growth plans.
About Altman Solon: Media
Altman Solon is the world’s largest strategy consulting firm focused exclusively on telecommunications, media, and technology (TMT). In the media sector, we advise across the full spectrum of segments, helping clients navigate rapid change in content creation, distribution, and monetization, and supporting M&A decisions with data-driven diligence and value creation planning.
Who we work with
- Studios, broadcasters, and streaming platforms
- Advertising and ad tech players (publishers, platforms, and the ad tech stack)
- Sports rights holders (including leagues and rights owners), agencies, and distributors
- Music, audio, and podcasting platforms and rights stakeholders
- Digital publishers, print and subscription businesses, and DTC media brands
- Gaming and esports companies and platforms
- Private equity, growth investors, infrastructure funds, lenders, distressed investors, and hedge funds
- Investment screening and market landscaping (segment attractiveness, growth drivers, and risk factors)
- Commercial due diligence (audience, revenue model, competitive positioning, and plan validation)
- Technical due diligence (platform, infrastructure, and technology assessments tied to the business plan)
- Portfolio optimization and value creation planning (monetization, go-to-market, and operating model improvements)
- Post-merger integration and 100-day planning (operating model alignment and execution roadmaps)
- Exit strategy and equity story development (positioning, growth narrative, and value realization)
