Altman Solon is the largest global TMT consulting firm, with expertise in media consulting. In this video series, Partner Jon Wakelin discusses the rise of in-game commerce and how AI automation is reshaping AAA game development economics.
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:
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.
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.
As gaming becomes more complex and capital-intensive, companies must continuously adapt product strategies, monetization models, and growth plans.
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.