From Local to Global: Unleashing the Power of Payments / Jan Kuhlmannn (Xsolla)
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The document discusses the evolution of the global video game market, showing a significant increase in revenue and the number of gamers since 1995, with a focus on the benefits of direct-to-consumer sales models. It highlights various regional market opportunities, particularly in emerging markets like China, India, and Brazil, emphasizing the importance of localized payment methods to enhance user acquisition and retention. Additionally, it showcases success stories of companies leveraging integrated payment solutions to boost revenue and expand their market reach.
From Local to Global: Unleashing the Power of Payments / Jan Kuhlmannn (Xsolla)
- 1. FROM LOCAL TO GLOBAL: UNLEASHING THE POWER OF PAYMENTS June 2023 JAN KUHLMANN Regional Marketing Manager, Europe
- 2. INDUSTRY PROJECTIONS Revenue ● $200B in 2023 ● $32B in 1995 Global players ● 3.2B in 2023 ● 100M in 1995 IT’S AMAZING HOW FAR WE’VE COME SINCE 1995 THERE ARE MORE PLAYERS BUYING MORE GAMES IN MORE WAYS IN MANY MORE PLACES THAN EVER BEFORE Source: Newzoo, Bloomberg
- 3. GLOBAL MARKET BY PLATFORM 2022 Total $184.4Bn -4.3% YoY Source: Newzoo Global Games Market Report 2022 Revenue 2022
- 4. MORE GAMERS GLOBAL GAMERS 2.03B 2.17B 2.33B 2.49B 2.64B 2.89B 3.08B 3.23B 3.57B 2016 2015 2017 2018 2019 2020 2021 2022 2025 Source: Newzoo Global Games Market Report 2022
- 5. THE NATURE OF SALES CHANGED BUT THE MIDDLEMAN REMAINED Resellers continue to operate between you and your player base. RETAILERS/PLATFORMS YOU RESELLER PLAYER BASE
- 6. OVERALL, ENTERTAINMENT IS MOVING MORE DIRECT STREAMING MOVIES STREAMING MUSIC STREAMING SPORTS Platforms allow direct artist uploads More funding toward indie projects Regional sports are going DTC (WSJ)
- 7. WHAT DOES IT MEAN TO GO DIRECT TO CONSUMER? Direct-to-consumer (DTC) is a way of marketing, selling, and distributing a game directly to players aside from third-party platforms.
- 8. DTC MEANS MORE REVENUE Enjoy a higher profit margin by capturing the markup that usually goes to third parties.
- 9. DTC MEANS MORE DATA Easily access and own customer data, which can help developers understand customer profiles and improve their products, UA, and marketing based on the audience.
- 10. DTC MEANS MORE PLAYERS Reach a bigger audience by owning user acquisition and improve retention by providing the best localized user experience.
- 11. GLOBAL PAYMENTS COVERAGE 99+ PAYMENT METHODS North America 89+ PAYMENT METHODS South America 39+ PAYMENT METHODS Africa 397+ PAYMENT METHODS Europe 54+ PAYMENT METHODS Russia + CIS 220+ PAYMENT METHODS Asia + Middle East 39+ PAYMENT METHODS Australia + Oceania
- 12. EXPANDING HORIZONS IN EUROPE & AMERICA
- 13. MARKET SPECIFICS ● European video games revenue: $24.9B (ISFE, 2022) ○ 81% from digital sales ○ 77% from Germany, UK, France, and Italy ● Online banking and account-to-account payments (SEPA) are popular LOCAL PAYMENT METHODS IN EUROPE Popular payment methods:
- 15. CHINA MARKET OPPORTUNITY MARKET SPECIFICS ● China: second largest video game market ● $39B in revenue in 2022 (TechCrunch, 2023) ● 75% of consumers use WeChat & AliPay ● Increase payments coverage by 95% Popular payment methods:
- 16. JAPAN MARKET OPPORTUNITY MARKET SPECIFICS ● Japan: third largest video game market ● $20B in revenue in 2022 (Newzoo, 2022) ● Majority: Relevant portion APM ● Increase payments coverage by 30% Popular payment methods:
- 17. SOUTH KOREA MARKET OPPORTUNITY MARKET SPECIFICS ● South Korea: fourth largest video game market ● $7.4B in revenue in 2022 (Newzoo, 2022) ● Increase payments coverage by 80% Popular payment methods:
- 18. INDIA MARKET OPPORTUNITY MARKET SPECIFICS ● $2.6B revenue in 2022 (Business Standard, 2022) ● Grew 4x in 2022 - one of the fastest growing ● Increase payments coverage by 40% Popular payment methods:
- 19. INDONESIA MARKET OPPORTUNITY MARKET SPECIFICS ● Indonesia 17th largest video games market ● $1.45B in revenue in 2022 (Statista, 2022) ● Majority: Alternative Payment Methods ● Increase payments coverage by 80% Popular alternative local payment methods:
- 20. THAILAND MARKET OPPORTUNITY MARKET SPECIFICS ● Thailand 19th largest video games market ● $1.24B in revenue in 2022 (Statista, 2022) ● Majority: Alternative Payment Methods ● Increase payments coverage by 32% Popular alternative local payment methods:
- 21. BRAZIL MARKET OPPORTUNITY MARKET SPECIFICS ● Brazil: tenth largest video game market ● $2.6B in revenue in 2022 (Newzoo, 2022) ● Majority of consumers use bank cards & digital wallets ● Increase payments coverage by 37% Popular payment methods:
- 22. SUCCESS STORIES
- 23. THE CHALLENGE Explore fresh revenue streams, enhance player retention, and raise the LTV of Star Trek Timelines by Tilting Point Media. THE SOLUTION ● Launched Web Shop to improve top player metrics. ● Web Shop incentivizes whales, dolphins, and aspiring newcomers to return to the web to purchase. PARTNER SUCCESS STORY: TILTING POINT’S STAR TREK
- 24. THE RESULTS ● Game web shop purchases make up almost 25% of total revenue. ● Over half of Timelines' web shoppers make repeat purchases. ● Preferred payment methods: bank cards, PayPal, Apple Pay, Google Pay, and Amazon Pay. PARTNER SUCCESS STORY: TILTING POINT’S STAR TREK
- 25. XSOLLA HELPS BRING WEMADE’S MIR4 TO 100+ COUNTRIES CHALLENGE Given the rapid embrace of MIR4 worldwide, WeMade needed a payment solution to fully support its global audience. They also required full management of regional issues like legal, taxes, and customer support. SOLUTION An integrated Pay Station allowed WeMade to confidently approach a broader audience from Brazil, the Philippines, Thailand, and more – with region-appropriate payment methods.
- 26. IN THE FIRST 2 MONTHS, WEMADE EXPERIENCED A 500% INCREASE IN DAILY SALES 65% of volumes are generated by emerging markets +500% in daily sales over the first two months after launch +105% growth in sales in Philippines +60% growth in sales & conversion in Brazil 200%+ increase in new customers in Brazil, Thailand, and more Aug Sept Oct Nov $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $171,340 $3,820,000 $6,370,000 $1,250,000
- 27. WE ARE A GLOBAL VIDEO GAME COMMERCE COMPANY Xsolla’s robust and powerful set of tools and services are designed specifically for the video game industry. Sell directly to more users Better manage user behavior data Increase payment reach and conversion Generate more revenue with higher margins Headquartered and incorporated in Los Angeles with offices around the world to support our partners’ global businesses.
- 28. DOWNLOAD FREE EBOOKS TO GROW YOUR REVENUE