THE GLOBAL MMO GAMES MARKET - PAYMENTS, INTELLIGENCE AND TRENDS GLOBALCOLLECT VIDEO GAMING PAYMENTS: KNOWLEDGE SERIES
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video gaming
KEY
TheFACTS
Global MMO
AND
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INSIGHTS
s ma r k et
on
Payments,
cross-screen Intelligence
monetizationand Trends
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games in Europe
GlobalCollect and
Video Gaming the Knowledge
Payments: US Series
Featuring market overview of growth
markets Poland and Turkey
Edition 2 July 2013
August 2012WELCOME In this second installment of the GlobalCollect video gaming payments knowledge series for 2013, we take a close look at global MMO market data including card transaction success rates, regional growth trends, payment method statistics and a fresh look at global credit card fraud in the MMO market. Exclusive transaction-based data from GlobalCollect and market data from the International Games Research Company Newzoo is bundled to produce unique insights into the rapidly evolving games industry and the associated payment trends. Nathan Salisbury Global Market Director - Gaming Nathan.Salisbury@globalcollect.com
TABLE OF CONTENTS
Global MMO Market 4
1.1 MMO game market revenues per region 2013E
1.2 Top credit card authorization rates per country
Growth in the Global Games Market 5
2.1 Top growth countries: Worldwide
Global Transaction Value Trends 6
3.1 Top 10 Countries per ATV
3.2 Payment Methods: Above and Below ATV
Global Games Platform Split 7
4.1 Global Games Market revenues per platform 2013E
4.2 Average Transaction Value per games platform
MMO Specific 8
5.1 Payment Methods: F2P vs. P2P
5.2 Genre Split
5.3 Top 5 preferred MMO genres
Credit Card Fraud & Data Chargeback 9
6.1 Chargeback ratios per top countries
6.2 Split per reason and type
3GLOBAL MMO MARKET
REVENUE DATA
The global games market is this year expected to reach $70.4 Billion, an increase
of 6% from 2012. MMO games will account for $14.9 billion, or 21.2%, of these
global revenues. The Asia Pacific region (APAC), which is now the largest games
market in the world, generates 34% of global game revenues.
APAC accounts for an unprecedented 64% of revenues when focusing on
MMO games, highlighting the immense popularity of MMO games in the APAC
region relative to the rest of the world. North America (NAM) and Europe,
Middle East and Africa (EMEA) account for 17% and 16% of MMO revenues
respectively with Latin America (LATAM), which grew by 15% since 2012,
accounting for just 3%.
Global MMO Games Market Revenue | Per Region
Newzoo | 2013E
LATAM
$0.5Bn
+15% Y-o-Y
59M
NAM GAMERS
$2.5Bn The Asian MMO
+5% Y-o-Y
79M
3% market is growing at
GAMERS
17%
an incredible rate,
fueled by a rise of
Chinese gamers with
APAC
increased accesibility
EMEA
Total $9.5Bn to high speed internet
$2.4Bn
+8% Y-o-Y
16% $14.9Bn 64%
+18% Y-o-Y connections at home.
282M
208M GAMERS
GAMERS
*Based on a financial analysis by Newzoo © 2013
Credit Card Transactions Authorisation Rates |Per Country
GC Portfolio | Q1 2013
1. 6. GlobalCollect assists global
MMO’s in maximizing credit card
90,88% 87,95%
Japan United kingdom
2.
89,89%
7.
87,10%
transaction success rates. This
Germany denmark
is achieved by utilising multiple
3. 8.
89,93%
australia
86,40%
United states
and localized acquiring channels
4. 9. and by benchmarking card
88,66%
korea
86,39%
France acquirer performance to optimise
5.
88,41%
10.
86,32%
transaction routing.
new Zealand norway
* Based on transactions processed by GlobalCollect Q1 2013FASTEST GROWING COUNTRIES
2012-2013
The MMO market is expected to reach 19.5 billion by 2016 with a CAGR
of 10.4%. This will make MMO’s the second largest gaming segment,
accounting for 22.7% of all global revenues. This growth will be primarily
driven by less mature markets in the APAC, LATAM and Eastern European
regions.
With internet penetration already at 80% and a long running gaming
tradition, the mature markets of North America and West Europe are now
relatively saturated with little room for growth. Emerging markets however,
will continue to expand, ensuring healthy growth of MMO gaming within the
global games industry.
Top Growth Countries: Worldwide
GC Portfolio |Q1 2012 - Q1 2013
03 South Korea
16 Mexico
11 Hong Kong
02 Thailand 05 Taiwan
14 Costa Rica
09 Philippines
06 Singapore 01 Malaysia
07 Peru
13 Indonesia
10 Chile
12 New Zealand
15 Australia
08 Argentina 04 Uruguay
* Based on GlobalCollect transaction volumes.
Mirroring this trend, Global Collect’s top 16 growth countries (Q1 2012 vs Q1
2013) each belong to the APAC or LATAM region. Top growth country Malaysia
grew by an unprecedented 121% over the past year, with Thailand growing by
104% and The republic of Korea by 100%*.
Within these markets, growth is fueled by an increase in economic growth,
internet penetration and active gamers. This combination will ultimately lead to
more time and money spent on gaming with the biggest growth expected in
China and India.
5GLOBAL TRANSACTION
VALUE TRENDS
Measuring the average transaction value (ATV) of video gaming transactions
on a country level can provide video gaming monetization and payment
specialists with valuable information.
ATV data is invaluable for formulating new and emerging market penetration
strategies. ATV data also assists in fine-tuning regional pricing and default
price points to optimise revenues.
Top Countries | Average Transaction Value
Q1 2013
Middle Eastern and
1 Qatar 6 Austria
European markets
2 Saudi Arabia 7 Germany
complete the top 10
countries by average
3 Switzerland 8 Belgium transaction value in video
gaming transactions.
4 Kuwait 9 United Arab Emirates Over 170 countries are
represented in the data
5 Netherlands 10 Norway that contains tens of
millions of transactions per
quarter.
* Based on transactions processed by GlobalCollect in Q1 2013
Payment Method ATV Index | Above & Below ATV
GC Portfolio |Q1 2013
Direct Debit transactions
180 attract the highest
160 average transaction value
140 per payment product
120 group. Often seen as a
100
high risk product due to
80
reversals, Direct Debits
60
in multiple countries
40
are extremely effective
20
0
for games with a loyal
consumer base, most
s
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ts
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rd
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notably in Germany.
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* Based on transactions processed by GlobalCollect in Q1 2013
al
ReGLOBAL GAMES
PLATFORM SPLIT & ATV
The MMO market is expected to grow by a global CAGR of 10.4% by
2016 to claim 22.7% of the global games market. This growth will come at
the expense of traditional PC boxed/downloaded games and handheld
consoles, both of which will continue to lose market share. The continued
growth in MMO revenues means the computer screen will continue to lead
other screens with a market share of 35.8% totalling $30.9bn by 2016.
Global Games Market Revenues | Per Platform
Newzoo | 2013E
Pc Boxed
Download
$6.0Bn
Casual / Social Consoles remain
$6.6Bn
-7% Y-o-Y -2% Y-o-Y the largest gaming
9% 9% segment worldwide
but will shrink by -1%
this year. Mobile
Total 18%
Mobile
$70.4Bn
$12.3Bn
+35% Y-o-Y
gaming will see the
+6% YoY biggest growth (+35%)
Consoles
$30.6Bn followed by the MMO
-1% Y-o-Y
43% 1,231M
games market which
GAMERS
21% will grow by +14% to
MMO
$14.9Bn
reach $14.9 billion.
+14% Y-o-Y
*Based on a financial analysis by Newzoo © 2013
Games Platform | Average Transaction Value Index
GC Portfolio | Q1 2013
Early adoptors of
140
gaming on Smart
120
TV’s are spending
100
lower amounts per
80 transaction than any
60 other platform. This
40 is likely to change
20 as developers and
0 manufacturers tackle
the controller hardware
k
d
d
ile
V
e
or
ol
tT
se
se
ob
ns
and gameplay issues
w
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ar
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et
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O
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M
M
* Based on transactions processed by GlobalCollect in Q1 2013 7MMO SPECIFIC
PAYMENT METHODS AND GENRE
Credit card payments allow game monetization experts to capture impulse
purchases by utilizing hosted credit card data with seamless purchase flows.
Reducing friction in the purchase process is key to maximising revenues in
any free to play game.
The popularity of alternative payments in Free to Play games remains strong,
although trends indicate an increase in card payment popularity for free to
play since Q4 2012.
Payment Method MMO l Free to Play VS Pay 2 Play
GC Portfolio | Q1 2013
1%
3%
5% 3% 7%
1%
Pay 7%
Free
2 93% 2 78%
Play Play
* Based on transactions processed by GlobalCollect in Q1 2013 Realtime bank transfer Direct debit
Prepaid / vouchers Credit cards
* Free to play models (incl. F2P Subs, F2P Virtual Currencies,
Items elling, Extensions/Extra levels) eWallets Bank transfers
Transaction Split | Per Game Type Top 5 Genres | MMO
GC Portfolio | Q1 2013 Newzoo | 2013
+1% Q4 2012 - Q1 2013
8% 1. Fantasy
2. Realism
39% 3. Science Fiction
-6% Q4 2012 - Q1 2013
53% 4. Anime
+5% Q4 2012 - Q1 2013
5. History
Casual
Hardcore
MidcoreCREDIT CARD FRAUD &
CHARGEBACK DATA
Video gaming has been at the heart of internet based fraudulent credit card
activity for many years. Gold farming and other fraudulent practices are
ongoing despite attempts by gaming companies to bring the reseller economy
in-house, by offering marketplaces and auction houses within the game.
Northern Africa and Central America are emerging as hubs for video game
fraud according to statistics produced by GlobalCollect for transactions
initiated in Q4 2102 resulting in a chargeback.
Chargeback Ratios | Per Country
GC Portfolio | Q4 2012
1. 6.
8,8% 3,6%
nicaragua Indonesia
2. 7. Having access to
5,1%
dutch antilles
2,7%
Israel global video gaming
fraud data gives
3. 8. GlobalCollect’s clients
4,8%
Tunisia
2,6%
Marocco a distinct advantage
when setting up fraud
4. 9. rules for their games.
4,6% 2,6%
algeria Mongolia
5. 10.
4,3% 2,6%
albania bahamas
* Based on transactions processed by GlobalCollect in Q4 2012
(For countries with more than 1000 transactions in the period)
Credit Card Chargeback Reasons |Fraud vs Non-Fraud
GC Portfolio | Q4 2012
Reason Fraud Non-Fraud % of total
Fraud card-absent environment 50,3%
No cardholder authorisation 24,9%
Transaction not recognised 6,7%
Request for support not fulfilled 4,2%
Cancelled recurring transaction 3,6%
* Based on transactions processed by GlobalCollect in Q4 2012 9GlobalCollect is the world’s premier Payment service Provider of card processing and local e-payment solutions for the online Video Gaming industry. While most providers limit their services to a technical link with payment acquirers, GlobalCollect is a full service partner providing you with advanced back office services as well as online game business intelligence, best practices and benchmarks based on years of experience with international online gaming leaders. Through a single-interface platform we offer access to an unrivalled portfolio of online payment methods in over 170 countries and 170 currencies, including all major credit and debit cards, e-wallets, direct debits, realtime banking, prepaid, cash at outlets, and bank transfers. GlobalCollect is PSD licensed and is certified as Level 1 PCI Compliant. Our robust and redundant systems guarantee our customers high availability and reliability. Headquartered in Amsterdam, GlobalCollect has six locations around the world, and is a Welsh, Carson, Anderson & Stowe company. Newzoo is an international market research company focused purely on the games industry. Newzoo provides the best independent consumer market data across all game platforms and business models. Our combination of activities gives us a deep understanding of the global games industry and ensures we are always ahead of traditional market research companies. Newzoo’s clients include Nvidia, Blizzard, EA, Gamehouse, Microsoft, Valve, GlobalCollect and Wizards of the Coast. “While every reasonable effort is made to ensure that the data provided is accurate, no guarantees are made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any such data. The information is provided on an “as is” basis. It is provided without any representation or endorsement made and without warranty of any kind, whether express or implied, including but not limited to the implied warranties of satisfactory quality, fitness for a particular purpose, non-infringement and compatibility. GlobalCollect shall not be held liable for any use or application of the data provided, and assumes no responsibility for the use or application of the data or information derived from interpretation of the data. In no event shall GlobalCollect be liable for any direct, indirect, or incidental damages arising from the use or application of such data.”
THANK YOU We hope you enjoyed the second edition of GlobalCollect’s video gaming payments knowledge series. This report provides a snapshot of the gaming and payments data for 2013 available to our clients via our business intelligence and professional services. Presenting accurate and visually appealing data allows our gaming clients to clearly identify trends and outliers in their own payments performance and ultimately take action on the insights provided. Make informed business decisions, increase your global payments performance and boost revenues with GlobalCollect. Nathan Salisbury Global Market Director - Gaming Nathan.Salisbury@globalcollect.com
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