Digital Game Market In Europe Expected To Reach €3.3 Billion ($4.2 Billion) By 2015
New Report from DFC Intelligence, Skrill Holdings and Live Gamer Offers Publishers a Roadmap for Optimizing Revenue in Europe.
The findings of an essential new report, Monetizing the European Market for Virtual Currency, will be presented Thursday March 3, 2011, 1:30pm (PT) at the Game Developers Conference in San Francisco.
DFC Intelligence, the author of the report, estimates that the market for digital game content in Europe is expected to grow to €3.3 billion ($4.2 billion). Or a total of 89% compared with €1.7 billion ($2.2 billion) in 2010.
David Cole, DFC analyst, said: “The European market is actually underserved when it comes to digital content. We are finding that performance often comes down to how well a company is able to tackle the many local idiosyncrasies of consumer preferences for distribution and payment.”
Europe is a key market for game developers. However, due to the difficulties in reaching the many individual markets, European customers have been largely underserved. One major challenge is understanding the diverse payment options for digital content and how these options vary by country. The content providers that understand and tackle payment issues country-by-country are the ones likely to be most successful in Europe.
With co-contributors Skrill Holdings (operating payment provider Moneybookers), and Live Gamer, the report examines actual transaction data from over 300,000 consumers in 27 European countries. A survey was also conducted of over 2,800 PC gamers in Europe and it was found that over 76% had purchased a full game via digital delivery.
Andrew Schneider, Live Gamer President, said: “Gamers are willing to purchase games online and engage in microtransactions. However, we find that one of the biggest considerations for consumers is the ease of payment processing. Publishers that offer the most flexibility in payment options tend to be far more successful at revenue optimization.”
Martin Ott, Co-CEO of Skrill Holdings, said: “This report clearly identifies the global demand for virtual currencies and digital goods is on the rise. In order to maximize their potential, European publishers in particular are looking for payment providers that have a deep understanding of the industry and the scale and expertise to offer a wide range of options that literally extend to all four corners of the earth to meet gamers’ demands.”
David Cole, added: “When looking at the transaction data, one thing that stands out is the surprising activity from certain countries such as Romania. However, when you understand that consumers in Romania have a sophisticated broadband and payment infrastructure in place it starts to make sense.”
According to the report, the average Romanian consumer makes five transactions a year at an average of $24 each.
Findings from the report, Monetizing the European Market for Virtual Currency, will be presented at the GDC panel session Beyond Credit: Localized payment strategies for a global business, on Thursday March 3rd at the Moscone Center 1:30pm PT (RM 309). During this session, key findings will be shared that highlight which payment methods drive the most revenue in Europe for online game publishers. After the findings are presented, members of the panel, including publishers, will discuss best practices, success and failures and how to best set up a global-local payments strategy. DFC Intelligence analyst, David Cole, will moderate the panel with panelists including Nima Pourshasb, VP Corporate Development from Live Gamer; Carsten van Husen, CEO of Gameforge 4D; Ralf Wenzel, COO of Skrill Holdings; and Linus Menden, Head of Finance at Big Point.
Skrill Holdings operates Moneybookers.com, one of Europe’s largest online payments systems and among the world’s largest independent e-wallet providers with over sixteen million account holders. This simple e-wallet enables any customer to make online payments conveniently and securely without revealing personal financial data, as well as send and receive money transfers cost-effectively simply by using an email address. Moneybookers’ worldwide payment network offers businesses access to over 100 payment options in over 200 countries and territories through just one integration.
Founded in 2001, Moneybookers was the first e-money issuer to become authorised and regulated by the FSA. In 2007, Investcorp Technology Partners undertook the buyout of Moneybookers from its founders. Today more than 80,000 merchants are registered with Moneybookers.com, including global partners such as eBay.com, Skype and Thomas Cook.
In February 2010 The Sunday Times Deloitte Buyout Track 100 league table ranked Moneybookers as the Number 1 fastest growing, private equity-backed firm in the UK based on profits.
About DFC Intelligence
DFC Intelligence is a strategic market research and consulting firm focused on interactive entertainment and the emerging video game, online game, interactive entertainment and portable game markets. Since 1995 DFC has published in-depth strategic market reports and subscription-based research services. DFC research is used by more than300 leading companies in over 30 countries worldwide.
About Live Gamer
Live Gamer (www.livegamer.com) provides a complete monetization solution for global micro-transaction-based businesses. Spanning online games, digital entertainment, and social networks, Live Gamer’s advanced offerings go beyond billing to drive core business metrics, optimize new transaction-based revenue streams, as well as drive end-user engagement. Combining its micro-transaction platform, catalog management, storefronts, merchandising and anti-fraud solutions, scalable publisher support and international payment gateways, Live Gamer’s technology has been adopted by leading publishers in gaming, social and entertainment including CCR, Electronic Arts, Namco Networks, REAL Networks, Sony Online Entertainment and THQ, supporting over 90 million users in 23 countries.
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