Mastering Video Game Economy Design in 2025: A Comprehensive Guide

by Kaushik Dey / Friday, 20 June 2025 / Published in Game Design, Game Development

Why Game Economy Matters

Imagine opening a game and instantly getting hooked, not just by its visuals or story, but by the sense of reward, progression, and value it offers. That’s the power of a well-crafted in-game economy. From Fortnite to Genshin Impact, game economies are not just design elements; they’re revenue engines, retention mechanisms, and player experience enhancers.

As of June 2025, mobile Genshin Impact in China generated $1.72 billion dollars worth of IAP revenues. Ranking second is Japan, with over 1 billion U.S. dollars in in-app purchase revenues. The United States were ranked third.

What drives this success? A robust, engaging, and balanced economy. Let’s explore what makes a game economy function well, how different player behaviors influence it, and how developers can design systems that enhance engagement and profitability.

What Is an In-Game Economy?

An in-game economy is a virtual system within a game that governs how goods, currencies, and services are created, exchanged, and consumed. Much like a real-world economy, it includes mechanisms for earning and spending, scarcity and abundance, and even inflation or trade. However, it’s crafted with game-specific rules and design goals in mind, often to support progression and monetization.

Types of Game Economies

Different games require different types of economies. Here’s how they compare:

Type	Description	Example Games	Pros	Cons
Closed Economy	All resources earned only through gameplay. No external transactions.	Final Fantasy, early Zelda titles	Predictable, tightly controlled	Limits monetization and flexibility
Open Economy	Player-driven trade and market systems; prices based on supply/demand.	EVE Online	Dynamic, community-driven	Prone to inflation, imbalance
Real-Money Economy	Real currency used to buy/sell virtual goods.	CS:GO, Diablo III Auction House	Generates significant revenue	Risk of pay-to-win, legal complications
Hybrid Economy	Combines free gameplay, in-game currency, and real-money transactions.	Fortnite, Genshin Impact	Broad appeal, scalable monetization	Requires careful balance
Play-to-Earn (P2E)	Blockchain-based; rewards can be traded for crypto.	Axie Infinity	Real ownership of assets	Regulatory, ethical, and sustainability issues

Each model has unique impacts on gameplay and revenue. Choosing the right one depends on your game’s goals and target audience.

Designing a Game Economy: A Strategic Approach

Designing a game economy begins with your game loop—the recurring set of actions that drive gameplay. The economy should support these actions with logical rewards, progression pacing, and monetization options.

Introduce currencies early on, usually with a dual-tier system: soft currency (earned easily) and hard currency (usually paid). Rewards must scale with effort. A player finishing a tough level should get more than one completing a simple task.

To prevent inflation and hoarding, include currency and item “sinks” like item upgrades or character unlocks. Prices should reflect item value and rarity, encouraging players to engage consistently.

Regular testing, using tools like A/B testing or telemetry, helps ensure balance and fairness.

Understanding Player Behavior

Understanding why players behave the way they do helps shape your economic system:

Hoarders collect resources for future use. While natural, unchecked hoarding can lead to imbalance. Developers often cap inventory or introduce item expiration.
Completionists seek 100% completion, including rare or hidden items. Engaging them involves collectibles, achievements, and secrets—like Doom Eternal’s hidden rooms.
Gambling Enthusiasts enjoy risk-based activities, like card games or loot boxes. These must be clearly separated from real-money spending to remain ethical.
Spenders pay for convenience or status. The key is to reward them without punishing non-spenders, keeping progression enjoyable for all.

Tools for Economy Design and Balancing

Here’s a quick comparison of tools that can support game economy design:

Tool	Purpose	Ideal For	Strengths
GameAnalytics	Player behavior & monetization tracking	Mobile & web games	In-depth metrics, easy integration
Unity Analytics	In-engine data tracking	Unity-built games	Seamless Unity integration
Balancy	Economy simulation & balancing	Mid-size studios	Visual interface, customizable models
PlayFab Economy	Backend for virtual goods & currencies	Cross-platform titles	Robust backend services
Firebase + A/B Testing	Experimentation & segmentation	F2P games	Fast iteration and insights

What’s Next: Emerging Trends

Economy systems are evolving in sync with new technologies and ethics:

AI-Driven Personalization: AI tailors in-game store offerings and pricing based on user behavior, maximizing retention.
Tokenized Assets: NFTs and blockchain enable players to truly own items, though adoption remains niche and controversial.
Ethical Monetization: Transparency and fairness are becoming priorities. Developers avoid dark patterns in favor of long-term trust.
Subscription Models: Battle Passes and monthly content drops replace traditional DLC, offering consistent revenue and engagement.

Case Study: Clash Royale

Clash Royale showcases a hybrid economy with free-to-play accessibility and strong monetization:

Currency	Use	Source	Monetization Angle
Gold	Upgrade cards	Battles, chests	Encourages engagement
Gems	Unlock chests, buy offers	Events, purchase	Drives microtransactions

The balance ensures that casual players feel rewarded while giving spenders valuable shortcuts.

Pitfalls to Avoid

Design flaws can quickly ruin a game’s economy:

Over-rewarding: Too many freebies inflate the economy and reduce challenge.
Lack of Sinks: Without reasons to spend, players hoard resources and disengage.
Unfair Pricing: Items priced too high or too low skew perceptions of value.
Over-monetization: Excessive pay-to-win elements frustrate players and hurt retention.

Regular updates and real-world testing prevent these issues from spiraling.

Conclusion: Balancing Experience and Profit

A successful game economy balances engagement, satisfaction, and monetization. It must evolve with player needs and technological shifts. With the right tools and strategy, you can create an ecosystem that delights users while supporting sustainable growth.

Need expert help with your game’s economy design? Contact us for consultation or watch out for our upcoming blog on “The Evolution of Video Game Revenue Models.”