Some games cost nothing to start because the publisher expects to earn money in other ways: through advertising, optional purchases inside the game, or a continuing service that players return to over months or years. Removing the upfront price widens the audience a game can reach. The business then recovers its costs from a share of those players, from ads shown to some or all of them, or both. That is a business strategy rather than a promise. Not every player spends, and not every free game uses the same revenue mix.
The short answer
Developers choose free access because a game with no entry price can attract far more people than one that must be bought first. Meta’s developer guidance describes the free-to-play model as free player access funded by ads and/or microtransactions, and it names the broad potential audience as a core advantage. The trade is that revenue depends on how many of those players engage with paid or ad-supported parts of the game, and on whether the game keeps giving them reasons to stay.
Free-to-play, freemium, and free-to-start are different models
The three terms are often used interchangeably, but they describe different arrangements. They are useful as explanatory categories rather than legal definitions, and a single game can combine more than one.
| Model | Upfront price | How the business earns money | Typical shape |
|---|---|---|---|
| Free-to-play (F2P) | None | Ads, microtransactions, or both | Ongoing updates, seasonal content, and optional purchases such as battle passes, cosmetics, extra lives, characters, or game modes |
| Freemium | None for the free entry point | Paid upgrades, items, features, or the option to remove ads | The boundary between free and paid content varies by game |
| Free-to-start (FTS) | None for a demo or opening experience | A purchase to unlock the full game | Meta distinguishes this from F2P, which more often relies on transactions and post-launch support |
The practical difference matters when you are deciding whether a game is worth your time. A free-to-start title has a finite cost after the unlock. A free-to-play title may never have a single fixed price, because what you pay depends on what you choose to buy and how long you play.
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Why developers choose the model
Removing the entry barrier
Many people will not pay for a game they have never tried. Removing the initial charge brings in players who would otherwise never reach the purchase decision. Meta calls this an extremely broad top-of-funnel, meaning the top of the audience pipeline that later turns into paying users.
Monetizing a larger audience
Ads and optional purchases can earn money from a portion of a large audience while the rest keep playing for free. Federal Trade Commission (FTC) materials from a September 2019 workshop report that panelists considered in-game purchases one factor that had helped make more free-to-play games possible and had kept prices from rising. That was a point raised by panelists, not a proven universal cause, and it is best read as the industry’s own explanation for why the model spread.
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Supporting a game over a long period
A free game that is meant to keep running can add modes, features, seasonal challenges, and other content. Meta says live-service updates can support continued engagement and revenue over time. This is why many free titles look different a year after launch than they did at release.
Selling expression, convenience, and utility
Purchases often offer cosmetics, status or identity signals, new characters, game modes, or consumables. Meta lists these as the kinds of items players buy. They are examples of what a game can sell, not evidence that every purchase is good value or that every item is fairly priced.
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Carrying the cost of ongoing support
A live-service free game has a cost side that a one-time sale does not. It depends on continued development and maintenance for as long as it runs. Meta flags this as a challenge and notes that only a small share of the player base typically spends. That guidance does not quantify the share, so no specific percentage should be assumed.
How the money comes in
- Microtransactions. Small or one-off payments within the game, such as cosmetics, characters, consumables, or extra lives.
- Battle passes and seasonal content. Progression tracks and time-limited challenges that accompany recurring updates. Some tracks may be free, others paid.
- Advertising. Ads can be a second revenue stream alongside purchases. Ads are not present in every free game.
- Randomized rewards. Loot boxes give uncertain virtual rewards, and some can be bought with real money or with a virtual currency. Because the outcome is chance-based, clear odds and a clear real-money cost matter.
- Player data and targeted advertising. The Consumer Financial Protection Bureau (CFPB) issue spotlight “Banking in video games and virtual worlds” discusses how game companies may collect behavioral and other player data and use it for targeted advertising or monetization. The report raises this as a concern. It does not mean every free game does this.
Where the trade-offs show up
- Free access does not automatically mean optional spending. Whether purchases are truly optional depends on what the game places behind payment. Meta’s guidance treats this as a design choice.
- Purchase pressure can be built into the design. The Australian Competition and Consumer Commission (ACCC) “Online and mobile games” guidance lists progression barriers, interruptions, limited-time offers, unclear additional costs, freemium pressure, nagging prompts, loot boxes, and urgency claims as practices to watch for. These are possible practices, not features of every free title. The ACCC page’s publication or update date was not established from the captured version, so check the live page for its current date.
- Paying players may gain more than cosmetics. A purchase can offer convenience, extra content, or gameplay advantages. Meta identifies perceived inequality between paying and non-paying users as a possible disadvantage for players. Whether a given game is pay-to-win depends on that game’s rules.
- Virtual currencies can hide real spending. When prices are shown in coins, gems, or similar units, the real-money cost is harder to judge. The FTC has raised concerns that young players may not understand real-money conversion or loot-box odds.
- Access can depend on the service staying online. The ACCC notes that if a developer stops supporting an online game, players may lose access to online play and to in-app purchases they have already made.
A case that shows how regulators approach it
In January 2025, FTC business guidance described allegations against Genshin Impact developer HoYoverse. According to the FTC, the complaint alleged that virtual-currency steps obscured the real cost of rewards, and that players, including children and teens, were misled about the odds of obtaining particular rewards. The guidance stated that the proposed order required approval from a federal judge before it could take effect. These are allegations and proposed settlement terms as described at publication. They are not a finding about the wider industry, and the order’s current status should be checked against the FTC’s own records before it is cited as settled.
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How to judge a specific free game
Because the model varies so much from title to title, the most useful question is not whether a game is free-to-play but how it makes money. Check the following before you start or before you spend:
- How much of the game can you play without paying? Note whether the free portion is a complete experience or a short trial.
- Are purchases cosmetic, convenience-based, or do they affect progression and competition?
- Are there ads, and how often do they appear? Do paid options remove them?
- Are rewards random? If so, does the game disclose the odds for each reward type?
- Can you see the real-money price of each purchase, or only the in-game currency?
- Does the game depend on continued online service for the content you are paying for?
If you are concerned about younger players, parental purchase controls may be available through the game itself, the console, or the device. Check the settings on each platform the child uses, because the options are not the same everywhere.
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