ACI Worldwide and Newzoo have today released research looking into the gaming market for UK, US, and Germany. The global gaming market is expected to reach $137.9bn in 2018, however, it remains a challenging environment.
The survey has revealed:
- 77% of UK players are regularly spending money on online games with payment fraud a top concern for players, and 1 in 5 experiencing fraud while paying for online games
- Grand Theft Auto most popular franchise in UK, while Mario is preferred in US and Germany
- 40% of non-paying gamers do not spend on games because the free gaming experience is satisfactory
- Gamers aged 30-40 are most likely to spend on power-ups, while the younger demographic (18-30) favors DLC/expansion packs as paid add-ons
- 78 percent of US gamers who have spent money on mobile have done so for in-game purchases, compared to only 65 percent in the UK and Germany
- 39 percent of respondents said that their main motivation to spend money in or on a game is enjoyment
- 68 percent of paying gamers say they are likely to spend more money if there is a loyalty or a rewards programme
For games developers, there is a balance to strike to monetise their games – 40% of non-paying gamers are not spending on games due to a satisfactory free experience, but 39% cite their main motivation to spend money on or in a game is enjoyment. Bearing that in mind, gamers aged 30-40 are most likely to spend money on power-ups, so developers should be seeking to make their games enjoyable enough to entice users to play, and difficult enough to encourage them to spend money.
“Gaming is one of the fastest growing segments within the broader entertainment industry, which continues to undergo rapid change as many forms of entertainment go fully digital,” McDonald continued. “Mobile and console gaming is driving changes in payments, especially with smaller value – and more frequent – in-app purchases on the rise. Gaining insight into the payment habits of gamers – especially as the cross-platform success of franchises such as Fortnite increases – is critical, as businesses strive to deliver next-generation, seamless payments experiences.”
“Understanding nuances in gamers’ paying habits and preferences can help publishers and developers craft top-quality, custom experiences for gamers,” said Sander Bosman, vice president – research, Newzoo. “But with variations across geographies, age and gender – not to mention differences between mobile, desktop and console gaming – there are multiple factors to be considered. This report provides much needed insights that help understand the paying gamer; what motivates them to pay and what is needed to deliver a superior gaming experience as the boundaries between platforms continue to blur.”
To read the full report visit: www.aciworldwide.com/lp/payments-in-gaming