Video Game Industry Glossary: 65+ Essential Terms
Over these past years in the industry, I have encountered countless terms and acronyms. As a result, I needed to search and ask around to understand what they meant, since many of them were completely new to me. Therefore, I have taken the opportunity to compile all of them in the following video game industry glossary. In short, these terms are essential for anyone who wants to work in the gaming business. Furthermore, understanding this vocabulary helps you communicate better with developers, publishers, and marketers alike.
Glossary of Terms
Below you will find the complete video game industry glossary organized by category. First, we start with general industry terms and testing concepts. Then, we move on to acquisition and advertising terms. After that, we cover cost metrics, engagement models, analytics, and finally publishing terms.
General Industry and Development Terms
| Term | Meaning | Description |
|---|---|---|
| AAA | In particular, known as Triple-A, these are games with the highest development budgets. AAA comes from the English grading system, similar to “honors.” | |
| AB Testing | Specifically, this is a methodology to validate features based on results after dividing players into two identical groups with different functionalities. | |
| Adserver | In other words, this is software that allows the management of advertising inventory in your game. | |
| Advertiser | Essentially, this refers to an entity, game, or company that acquires traffic/players with a marketing budget. | |
| Affiliate | In particular, this refers to a person, company, or entity that sends traffic (players) to a product (game) in exchange for a reward. | |
| AI | Artificial Intelligence | In particular, this refers to information science used to integrate human intelligence into games, mainly in characters and enemies. |
| Alpha | Specifically, this is the version of a game that contains all its gameplay and mechanics completed, but whose content is not 100% finished. Used to validate gameplay before the Beta phase. | |
| ARPPU | Avg Revenue Per Paying User | In other words, this measures the average revenue generated per paying user. It indicates how much each paying player spends on average. |
| ARPU | Avg Revenue Per User | Similarly, this measures the average revenue generated per user (including non-paying users). |
| ASO | App Store Optimization | Essentially, these are techniques and strategies to position a game in app stores through keyword optimization. |
Game Monetization and Design Terms
Additionally, understanding monetization and game design vocabulary is crucial for anyone working in the industry.
| Term | Acronym | Description |
|---|---|---|
| Beta | Specifically, this is the version of a game with all its final content. Used to identify and fix bugs before the official launch. | |
| Build | In particular, this refers to each internal software compilation. It usually has a version number for tracking purposes. | |
| CCU | Concurrent Users | Specifically, this measures the number of users playing simultaneously at a given moment. |
| Churn rate | Specifically, this is the percentage of players who leave the game. The inverse of Retention. | |
| Cohort | In particular, this is a concept used to group and compare users who share a common characteristic, usually the time period when they registered. | |
| CPA | Cost Per Acquisition | Specifically, this is the cost of acquiring a customer who performs a specific action (registration, purchase, etc.). |
| CPC | Cost Per Click | In other words, this is the cost of each click on one of our ads. |
| CPI | Cost Per Install | Essentially, this is the cost of each installation of our game. |
| CPL | Cost Per Lead | Specifically, this is the cost of each lead. A lead is a potential customer who has shown interest in our game. |
Cost and Performance Metrics
Moreover, understanding cost metrics helps you evaluate your marketing campaigns. As a result, you can optimize your spending and maximize returns. Here are the key cost-related terms in the video game industry glossary.
| Term | Meaning | Description |
|---|---|---|
| CPM | Cost Per Mille | In particular, this is the cost of having one of our ads shown 1,000 times on a given site. |
| CPV | Cost Per View | Specifically, this is the cost per view, usually referring to video views. |
| Cross-platform | In particular, this refers to any method and strategy that involves migrating players from one platform to another. | |
| Cross-promotion | Similarly, this refers to any method and strategy that involves migrating players from one game to another. | |
| CVR | Conversion Rate | Essentially, this is the conversion ratio of a goal, mainly used for visit/registration or active user/paying user ratio. |
| DAU | Daily Active Users | Specifically, this metric indicates the number of unique daily players. |
| DLC | Downloadable Content | For instance, these are games that require downloading additional content to progress in the game. |
| Dormant players | In other words, these are inactive players. | |
| eCPA | Effective CPA | Essentially, this is the player cost taking into account all players, including organic and viral ones. |
| eCPM | Effective CPM | In particular, this is the revenue obtained per 1,000 impressions of an ad. Used to compare campaigns with different pricing models. |
In addition to cost metrics, there are several terms related to engagement and business models. Therefore, this section of the video game industry glossary focuses on how games keep players involved and how they generate revenue. As a result, understanding these concepts helps you design better games.
| Term | Meaning | Description |
|---|---|---|
| Engagement | Essentially, this is a term used to describe user involvement with a product (game). |
Game Models and Monetization Terms
In addition to the technical metrics above, the video game industry glossary includes many terms related to game models and monetization strategies. Below you will find these essential concepts.
| Term | Meaning | Description |
|---|---|---|
| F2P | Free to Play | Specifically, these are free-to-play games where revenue comes from in-game purchases and/or advertising. |
| Fill rate | In other words, this is the percentage of ad inventory that has been filled. For example, if we have 100 ad spaces and fill 80, the fill rate is 80%. | |
| Freemium | Essentially, this is a business model where the product (game) is free but generates revenue through premium features or items. | |
| FPS | First Person Shooter | In particular, these are first-person shooting games. |
| Funnel | Specifically, this is the conversion funnel. As a result, each step in the funnel should convert at a high rate toward the final goal (usually a purchase). | |
| Game loop | Essentially, this is the main gameplay cycle. In other words, it defines how the player interacts with the game repeatedly. | |
| Gold | Specifically, this is the final version of a game ready for distribution. | |
| Hardcore | In particular, these are experienced players who dedicate significant time and effort to games. | |
| IAP | In-App Purchase | Notably, these are in-app purchases. Furthermore, they represent the main monetization model for free-to-play games. |
| Impression | Essentially, this counts each time an ad is displayed. | |
| K-Factor | Essentially, this is a metric that measures virality. Furthermore, it indicates the number of new users that each existing user brings. |
Analytics and Player Metrics
Furthermore, tracking player behavior requires a solid understanding of analytics terms. Consequently, the following entries in this video game industry glossary cover the most important analytics concepts.
| Term | Meaning | Description |
|---|---|---|
| KPI | Key Performance Indicator | Essentially, these are key metrics that we use to evaluate the performance of our game. |
| LTV | Lifetime Value | In other words, this is the expected total revenue from a player throughout their lifetime in the game. |
| MAU | Monthly Active Users | Specifically, this metric indicates the number of unique monthly players. |
| Midcore | In particular, these are players who fall between casual and hardcore. | |
| MMO | Massive Multiplayer Online | Specifically, these are massively multiplayer online games. |
| MOBA | Multiplayer Online Battle Arena | For instance, these are multiplayer online battle arena games like League of Legends. |
| Monetization | Essentially, this covers all techniques used to generate revenue from players. | |
| NPC | Non Player Character | In other words, these are non-player characters controlled by the game’s artificial intelligence. |
| Offer wall | Specifically, this is a wall of offers that the player can complete in exchange for virtual currency or rewards. | |
| P2P | Pay to Play | In contrast, these are games that require payment to play. |
Platforms, Publishing, and Marketing Terms
Finally, the video game industry glossary also covers platforms, publishing models, and marketing terms. Consequently, this section rounds out the essential vocabulary you need to know.
| Term | Meaning | Description |
|---|---|---|
| PCU | Peak Concurrent Users | Specifically, this measures the maximum concurrent players, usually used in MMOs. |
| PSN | PlayStation Network | The network of platforms under the Sony PlayStation umbrella. |
| Publisher | In particular, this is an entity, game, or company that publishes a game on a specific platform. | |
| Reactivation | Essentially, this is the process of reactivating inactive players. | |
| Reengagement | Similarly, this is the process of re-engaging inactive players. | |
| Revenue Share | In other words, this is revenue sharing between publisher and advertiser. | |
| RPG | Role-Play Game | Specifically, these are role-playing games. |
| RTS | Real-time Strategy | In particular, these are real-time strategy games. |
| SDK | Software Development Kit | Essentially, these are development tools. |
| Self-publishing | Essentially, this is the concept of self-publishing a game without depending on third parties, usually publishers. | |
| SEM | Search Engine Marketing | In particular, these are keyword marketing techniques. |
| SEO | Search Engine Optimization | Similarly, these are keyword positioning techniques. |
| Social game | Essentially, this is a game whose mechanics mainly revolve around social interaction between players. | |
| Virality | Essentially, this term is used to describe the organic acquisition capacity of a product (game). Furthermore, the more viral a game, the more players it acquires organically. |