How F2P games actually make money — the business model explained

F2P is the dominant business model in PC and mobile gaming, generating over $103B in revenue in 2025 (Newzoo). But how do these games actually make money? This is a deep dive into the 5 main revenue models, with revenue per user, mechanics, and which ones are most or least predatory.

The 5 main F2P revenue models

1. Cosmetic-only ("Fortnite model")

How it works: The game is free, but you pay for cosmetic items (skins, emotes, weapon wraps, victory poses, etc.). Gameplay is identical for paying and non-paying players.

Real examples: Fortnite, Valorant, CS2, Rocket League, Apex Legends, LoL

Revenue per user:

• Average paying user (whale excluded): $20-50

per year

• Whales (top 1%): $200-2,000 per year
• Free users (95%+ of players): $0
• % of paying users: 5-15% of active players

Why it works:

• The cosmetics are pure status symbols
• "Looking different" matters in a multiplayer

context

• The base game is fully accessible without

paying

• Players who pay for cosmetics are supporting

the game's ongoing content

Why it's the best model:

• No pay-to-win — gameplay is identical
• No FOMO — most cosmetics come back to

the shop

• No daily login pressure — players can log

in when they want

• No gambling mechanics — you see what

you're buying

Real revenue numbers:

• Fortnite: $20B+ lifetime revenue (Epic's

most successful game)

• Valorant: $2B+ lifetime revenue
• LoL: $2B+ revenue per year

Predatory score: 2/10 (very fair)

2. Battle pass ("Apex model")

How it works: The game is free, but you pay for a seasonal battle pass (usually $10). The pass has a track of cosmetic rewards you earn by playing. The pass lasts one season (3-4 months).

Real examples: Fortnite, Apex Legends, Call of Duty: Warzone, Marvel Rivals, Overwatch 2, Splitgate, Fall Guys, Halo Infinite

Revenue per user:

• % buying pass: 10-20% of active players
• Cost per pass: $10
• Annual revenue per buyer: $30-50 (3-4

passes per year)

Why it works:

• The pass feels like a "value bundle" — 100+

rewards for $10

• Players who don't buy still get a free track
• The pass is a recurring revenue stream for

the publisher

Why it's mostly fair:

• Free players get a smaller track (not

nothing)

• The pass doesn't affect gameplay
• Players can grind the pass without paying

(slower)

Why it's slightly predatory:

• XP gate — free players have to grind 100+

hours to complete the pass

• Time-limited — missed passes don't come

back (though some games are changing this)

• FOMO — exclusive items create pressure

to buy

Predatory score: 4/10 (mostly fair, slight FOMO issues)

3. Gacha with pity timer ("Genshin model")

How it works: The game is free, but you pay for "pulls" on a randomized loot box (gacha). Each pull has a small chance of rare items. A "pity timer" guarantees the rare item after a certain number of pulls.

Real examples: Genshin Impact, Honkai: Star Rail, Wuthering Waves, Zenless Zone Zero, Reverse: 1999, Arknights

Revenue per user:

• Whales (top 1%): $1,000-10,000 per year
• "Dolphins" (top 10%): $100-1,000 per

year

• Minnows (paying but small): $20-100 per

year

• Free players (70-80%): $0
• % paying users: 20-30% of active

players

Why it works:

• The pity timer makes spending predictable
• The free player experience is still good

(you get free characters from events)

• The whale spend subsidizes content for

everyone

Why it's controversial:

• Whale-driven — top 1% of players pay

for everyone else

• Gacha mechanics — even with pity, you're

paying for a randomized chance

• Gacha is restricted in some countries

(Belgium, Netherlands)

• Predatory for vulnerable players —

gambling-style mechanics can harm people with addiction issues

Why modern gacha is better than 2018 gacha:

• Pity timer (guaranteed 5-star at 90 pulls)
• Soft pity (rate increases after 75 pulls)
• Free 5-star selectors (most games now

give you a selector)

• Wuthering Waves' 80-pull selector is the

most F2P-friendly system in 2026

Predatory score: 6/10 (mixed — better than pure RNG, but still gambling-adjacent)

4. Pay-to-progress ("Diablo Immortal model")

How it works: The game is free, but paying gives you significant gameplay advantages (faster leveling, better gear, etc.). The "pay-to-progress" model is the most controversial.

Real examples: Diablo Immortal, some mobile gacha, some older F2P games

Revenue per user:

• Whales: $5,000-50,000 (yes, really)
• "Dolphins": $500-5,000
• % paying users: 5-10%
• Free players: effectively locked out of

the highest-tier content

Why it's the most predatory:

• Pay-to-win — paying players are

objectively stronger

• Designed to exploit — the game is

designed to make free players feel inadequate

• No skill expression — the best free

player loses to the worst paying player

• "Whale" exploitation — top 1% pay

$50,000+ which is clearly disordered spending

Why some games get away with it:

• Free players can still enjoy the campaign
• The PvP isn't always required
• The "value" is real (you get a tangible

gameplay advantage)

Predatory score: 9/10 (highly predatory)

5. Direct sales ("Roblox model")

How it works: The game is free, but players pay creators or the platform for in-game items (Robux, V-Bucks equivalent). The platform takes a cut of every transaction.

Real examples: Roblox, Fortnite (Creator Economy 2.0), Rec Room, VRChat

Revenue per user:

• Whale creators: $100,000+ per year
• Active buyers: $10-50 per year
• Free players: $0
• Platform cut: 30-70% of every transaction

Why it works:

• Creator economy — skilled creators can

make a living

• Player choice — you pay for what you

want, not what the platform forces

• Continuous content — creators keep

making content because they're paid

Why it's mostly fair:

• The platform is a marketplace, not a

publisher

• Quality content gets rewarded
• Free players can enjoy the platform

Why it's slightly problematic:

• Platform cut is high (30-70% to Roblox)
• **Predatory microtransactions in user-

generated games** — some creators use gacha mechanics

• Child safety concerns — Roblox has

had multiple child-safety issues

• Tax/regulatory uncertainty — some

countries are starting to regulate creator economies

Predatory score: 5/10 (mixed)

How the money flows

Here's how a typical F2P game's revenue breaks down by player segment:

Top 1% of payers (whales)        →  40-60% of revenue
Next 9% of payers (dolphins)       →  20-30% of revenue
Next 40% of payers (minnows)       →  10-20% of revenue
Remaining 50% of payers           →   5-10% of revenue
Free users (95%+ of players)      →   0% of revenue

This is the Pareto principle on steroids. The top 1% of payers generate more revenue than the bottom 99% of payers combined.

Which model is most profitable?

Based on 2025-2026 data:

Model	Top earners	Avg revenue/user (paying)
Cosmetic-only	Fortnite ($20B lifetime)	$20-50/year
Battle pass	Apex ($3B lifetime)	$30-50/year
Gacha with pity	Genshin ($5B+ lifetime)	$200-2,000/year
Pay-to-progress	Diablo Immortal ($1B in 1 year)	$500-5,000/year
Direct sales	Roblox ($3B+ revenue)	$10-50/year

Gacha is the most profitable per paying user (by a wide margin), but cosmetic-only + battle pass has the largest total revenue (because more people pay small amounts).

What this means for OFFLANE

We cover F2P games because they're interesting, and the players deserve honest coverage. The 5 models have very different ethics profiles:

• Recommend without reservation: cosmetic-

only (Fortnite, Valorant, CS2, LoL)

• Recommend with caveat: battle pass (Apex,

Marvel Rivals, Fortnite)

• Recommend to F2P-aware players: gacha

with pity (Genshin, HSR, Wuthering Waves)

• Avoid for vulnerable players: pay-to-

progress (Diablo Immortal)

• Mixed: direct sales (Roblox)

The future of F2P

The industry is slowly moving in the right direction:

• Battle passes with no FOMO — Apex and

Fortnite now bring back old pass content

• Generous gacha — Wuthering Waves' 80-pull

selector is the new standard

• Cosmetic-only is the gold standard — new

games (Valorant, Marvel Rivals) follow this

• Player time is being respected — daily

login requirements are being reduced

But the whale-driven model (gacha + pay-to- progress) is still the most profitable, and publishers will keep using it as long as it's profitable.

FAQ

What's the most profitable F2P game model?

Gacha with pity timer. The whale-driven model generates 2-3x more revenue per paying user than cosmetic-only. Genshin Impact has earned $5B+ in 5 years mostly from a small number of whales.

What's the fairest F2P game model?

Cosmetic-only. No pay-to-win, no gambling mechanics, no daily login pressure. Fortnite is the gold standard.

What model does OFFLANE recommend?

Cosmetic-only or battle pass. These models are the most player-friendly. Gacha is acceptable if you understand the mechanics. Pay-to-progress is a hard no.

What's the difference between a whale and

a dolphin?

A whale spends $1,000+ per year on a single game. A dolphin spends $100-1,000 per year. A minnow spends under $100 per year. The naming comes from casino terminology.

How much do F2P games make per active user?

• Cosmetic-only: $1-5 per active user per

year

• Battle pass: $2-8 per active user per

year

• Gacha: $10-50 per active user per year

(because whales)

• Pay-to-progress: $20-100 per active

user per year (the highest)

These are averages across all players, not just paying players.

Are F2P games more profitable than paid

games?

Yes — the top F2P games earn $1-5B+ over their lifetime. The top paid games (GTA V, Minecraft) earn similar amounts, but with much larger upfront investment.