Revenue model

Paradox Revenue model

The majority of revenues in Paradox derive from game sales through agreements with digital distributors such as Steam, Appstore and Google Play. In these cases, the consumer payments flow via the distributor, who charges a share of the amount paid by the end user based on industry standards, before the transaction reaches Paradox.

Some sales are also generated on the Paradox website [Paradoxplaza.com], where Paradox instead receives the full amount paid by the consumer. In both cases, Paradox then pays royalties to the developer of the game.

Revenues from game sales can be divided into the following four categories:

One-time payment

The players make a one-time payment when they buy the game for the first time. In this purchase, a number of future upgrades of the game are normally included.

Add-ons

Add-ons include sales of additional content created for already released games. It may be things like new worlds, music, equipment or other upgrades that improve the game experience. In addition to this, Paradox offers related services such as sales of t-shirts, mugs and e-books. The idea behind all these additional products is to supplement and further enhance the gaming experience.

Expansion packs

Expansion packs include sales of new updated versions or extensions of an existing game. Since the games are digitally distributed, the revenue model is highly scalable as the additional cost of developing extra content usually is significantly lower than developing a completely new game.

Licenses

Licenses include licensing the rights of certain brands to third parties that develop new products for the brand.