Publishers and developers are now able to access previously unreachable segments as the industry transitions away from retail towards a growing online market. Online gaming is booming – gamers are not restricted by consoles or connectivity requirements. The geographical reach of mobile games has increased even more. Video games are no longer seen as an activity that is only enjoyed by children and adolescents. They have become a part of the lives and economies of people from all walks of life and across the globe. The average gamer age is 30 according to ESA research. There is a nearly equal split between males and females, 55% of whom are men and 45% women. The video game industry has grown in recent years. From the boomer woman who plays a little bejeweled at dinner to the game designer with a young family who lives out in the suburbs, the sector is growing.
Online video games can be classified into two types: Pay to Play and Free to Play. Pay to play involves paying a subscription monthly, typically via credit card. This maintains the user’s account in the game. World of Warcraft is the most popular pay-to-play game, with 7+ millions monthly subscribers. The revenue generated by pay-to-play games comes from the subscriber base. So, it is important to build a large following early.
The reputation of free-to-play games is more complex, as are the ways they generate revenue. It’s predicted that in the coming years free-to-play games will overtake paid to play. However, whether diehard players of certain pay-to play games would be willing to make that jump remains to be determined. The free games that are available to players, well… they’re just for fun. They do make money by displaying ads and selling items during the game. (Usually, the offer to remove the ads after a certain amount is spent, like $3). They are usually small, inexpensive items which enhance the character or gameplay. For example, a stronger sword to enhance a warrior’s character, or new colours for drawing games. The items can be purchased for less than $5, and in most cases less than $1. Due to the small amount involved, these transactions are called 소액결제 현금화 or microtransactions. This is an exchange of money from the real world for in-game goods and services.
Pay to play fans have criticized free to play gaming for its perceived low quality, and fleeting experience. Players who play pay-to-play games enjoy a better social interaction as they form and join groups to help their characters advance in the game. The free to play advocates enjoy the freedom to start and stop the game whenever they want, without being obligated to it by the fear of losing the monthly “investment”. Many players also mention that the time required to succeed in a model of pay-to-play is not feasible for those who need to maintain a balance lifestyle.
Micropayments, which are usually too small to be included in a standard card scheme are more complex. It is not always a good idea to charge a credit card for micropayments because of excessive charges. Alternatives include adding a certain amount to the account of the player, and allowing them to spend it as they play. One option would be to bill the player once the game reaches the threshold amount, such as 10 or 15 dollars. In markets where money is the king, an ewallet allows gamers to participate in both types of online gaming.
Virtual currencies and virtual economies are also present in some games. Bitcoin, the cryptocurrency that has gained popularity in the gaming industry, is a good example. However it’s still unclear if this will be an effective solution for the problem of micropayments.
When a business decides to move into online gaming, they must understand the various payment requirements and be able to accommodate them. Super Data has compiled research on the most common payment methods in different markets. As international ecommerce experts will confirm, once you know local payment preferences you can capture market share at home and around the world. The research shows that gamers from the US, UK and Mexico prefer to pay with credit cards, while Germany ranks fifth after direct debit and prepaid card. Bank transfer is preferred in Brazil. This means that, “Based on both the variety of payment methods used and the differences in volumes from country to country, it appears that publishers who have a global approach are better served by multi-faceted monetization strategies”. It’s obvious that when selecting a processor to handle online gaming payments it is important to consider both international capabilities and the ability to provide a variety of payment options to gain the biggest market share. You should ask potential processors whether they accept micropayments and if so, what kind of knowledge they have about payment preferences of online gamers in different countries.
