An Analysis of Gamification on Dota 2’s Business Model

Abstract

Gamification has been widely applied to various fields to boost the user experience and engagement. Most businesses now have implemented gamification elements into their business models to increase their customer retention. These elements, often called the Customer Loyalty Programs have helped businesses retain their customer base by ensuring that their customers get rewarded for their support to the business. This paper analyses the business model of Dota 2, a Free-to-Play game which sells various in-game items including the Compendium annually. The compendium allows the players to earn or buy levels and receive rewards based on their achievements in the compendium. The compendium applies various concepts of gamification into it. The compendium is then annually improved by adding new rewards, milestones and features. We can expect that the sales of the compendium will increase with the implementation and improvement of gamification, which in turn can help to sustain the Free-to-Play model of the game.