0
Should I Pay or Should I Go?
Consumer Attitudes on F2P and
Alternative Payments

Robert Crawford
Vice President, Research,...
The Research
• Research was performed in conjunction with
Frank N. Magid Associates and PlaySpan Inc.
• Three separate gam...
●

Using a highly qualified sample provider, Research Now,
Magid surveyed a representative sample by gender, age
(13-54 ye...
Demos

U.S.
Population

Total
Contacts

NonGamers Gamers

Females
Race

Gamers exist in all
demographic groups, but
are sl...
Where Do We Stand Now?
●

The market is shifting
away from pay-to-play
(P2P) games and toward
a F2P model.

●

Data shows ...
Gamer Sentiment Toward
Alternative Payments
• What are alternative payments?
• Payment methods using options other than de...
Gamer Sentiment Toward
Alternative Payments
“How do you rate your experience with purchasing virtual goods
or other gaming...
Trends as we move Toward F2P

Strong gender
differences in
favorite genres,
and favorite
platforms

Youth and male
gamers ...
Know Your Audience: Gender
Differences
“What platform do you play
most often?”
●

Consoles strongly
preferred among
men, w...
Gender Differences Across Genres
Most-played genres
by gender
Both: Strategy
Women: Arcade-style
games, web-based
casual, ...
F2P Spending Trends
• Gamers 24
and under are
the biggest
spenders
• Men lead on
F2P spending

“How much did you spend on ...
Men and Women 18-24: “How much did you
spend on F2P games last month?”
$40
$35
$30

$30.54

$25
$20

$15
$10
$3.95

$5
$0
...
Trends in Virtual Goods
Purchases
• 35% of gamers have purchased a virtual good
• Most Popular Virtual Goods Purchases:
• ...
Even Consoles Going F2P
• Consoles are joining the F2P
revolution
• Data shows a strong desire
among console gamers for mo...
Challenges & Opportunities for F2P
●

Currently, relatively low monthly ARPU
• $9.15 for F2P vs. $28.86 for P2P

●
●
●

46...
Where are we Headed?
●

F2P will overtake P2P in annual revenue
when average spend on F2P games
increases from $9 to $17.
...
Thank You!
Contacts:
Robert M. Crawford, Ph.D.
Vice President, Research
bcrawford@magid.com

Robb Lewis
Vice President of ...
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Transcript of "Gdc next2013 magid-play-span-session-final"

  1. 1. Should I Pay or Should I Go? Consumer Attitudes on F2P and Alternative Payments Robert Crawford Vice President, Research, Frank N. Magid Associates Andre Machicao General Manager of PlaySpan, Visa Inc.
  2. 2. The Research • Research was performed in conjunction with Frank N. Magid Associates and PlaySpan Inc. • Three separate gamer surveys focused on three distinct areas: • • • Gaming and alternative payments Video game business models Freemium (aka F2P) and virtual goods on consoles • Americans 13-54 surveyed and asked about gaming habits. • Broad consumer data allowed us to learn more about our current and potential users.
  3. 3. ● Using a highly qualified sample provider, Research Now, Magid surveyed a representative sample by gender, age (13-54 years old) and ethnic background. A screening question (Which platform do you own and use regularly for gaming?) was used to identify current gamers. Those who did not select at least one of the platforms screened out. ● The overall incidence (the chance of finding a gamer) of the most recent study was 81%, up from 75% in the previous research. The incidence of gamers is highest among 13-54 men (96%) and lowest among 45-54 women (67%) ● Among gamers, 52% are men and 48% are women. Notes: Unless otherwise stated all data showed was sourced from this survey. Any references to specific game titles are used solely for representing the consumer provided information and does not imply product endorsement
  4. 4. Demos U.S. Population Total Contacts NonGamers Gamers Females Race Gamers exist in all demographic groups, but are slightly more likely to be young, 13-34 years old males. 13-17 18-24 25-34 35-44 45-54 13-17 18-24 25-34 35-44 45-54 White Hispanic Black Asian Other (N=601) (N=115) % Males (N=743) % % % 6 9 12 11 12 6 8 12 11 13 64 16 12 5 3 6 8 12 11 12 6 8 12 11 14 64 17 11 5 3 7 9 14 12 10 6 8 12 11 11 62 18 12 5 3 1 6 3 11 22 3 7 9 15 24 77 10 4 3 5
  5. 5. Where Do We Stand Now? ● The market is shifting away from pay-to-play (P2P) games and toward a F2P model. ● Data shows that 110 million Americans prefer playing F2P games over P2P or subscription games. ● $3 billion: U.S. virtual goods market this year. ● More than 8 in 10 consumers are gamers. “Do you generally play more F2P games or more P2P games?” 77% 9% More F2P 14% More P2P Both Equally
  6. 6. Gamer Sentiment Toward Alternative Payments • What are alternative payments? • Payment methods using options other than debit or credit card • E.g. prepaid closed loop cards and vouchers, bank transfer, virtual currency, mobile • Why alternative payments? • For gamers: better control over spending, privacy, financial security • For game developers: Country / Regional localized options, user choice / preference help increase conversions and ability to pay
  7. 7. Gamer Sentiment Toward Alternative Payments “How do you rate your experience with purchasing virtual goods or other gaming options? (For the following payment methods).” 5 Excellent Through a game specific card like a Blizzard World of Warcraft card you can buy at a… 4 3 2 43 Through a service such as PayPal or similar (N=117) 35 Through a personal credit, prepaid or debit card that can be used on anything (N=183) 34 Through in-game credits, often called soft currency (N=113) 33 Through a relative’s or friend’s credit, prepaid or debit card that can be used on anything… 32 Through a mobile phone SMS or smartphone payment app (N=43) 28 0% 20% DK/NS 33 36 Electronic transfer from your personal bank account (N=54) 1 Poor 17 31 18 7 44 30 26 22 6 36 23 26 29 16 24 1 51 6 45 60% 8 23 30 40% 4 22 7 5 7 80% 100%
  8. 8. Trends as we move Toward F2P Strong gender differences in favorite genres, and favorite platforms Youth and male gamers driving F2P spending F2P growing on consoles, and factoring in purchasing decisions
  9. 9. Know Your Audience: Gender Differences “What platform do you play most often?” ● Consoles strongly preferred among men, women lean toward mobile. 25% Smartphone Console 18% 45% 49% 7% 15% Tablet Computer Women 9% 4% Handheld Men 3% 4% 0% 50% 100%
  10. 10. Gender Differences Across Genres Most-played genres by gender Both: Strategy Women: Arcade-style games, web-based casual, social games “Which of the following genres do you play?” 13% Sports 33% 15% Action/Fighting 37% 23% Adventure 13% Shooters Men: Shooters, RPGs, Social Action/Fighting, Web-Based Casual Sports, Adventure 16% Arcade 35% 31% 9% 0% 47% 27% 32% Strategy Men 35% 15% RPGs Women 43% 42% 41% 50%
  11. 11. F2P Spending Trends • Gamers 24 and under are the biggest spenders • Men lead on F2P spending “How much did you spend on F2P games last month?” $20.00 $17.43 $15.00 $12.85 $10.00 $6.91 $6.89 $6.26 $5.00 $0.00 13-17 18-24 25-34 35-44 45-54
  12. 12. Men and Women 18-24: “How much did you spend on F2P games last month?” $40 $35 $30 $30.54 $25 $20 $15 $10 $3.95 $5 $0 Men Women
  13. 13. Trends in Virtual Goods Purchases • 35% of gamers have purchased a virtual good • Most Popular Virtual Goods Purchases: • New content (levels, maps) • Virtual currency • Usable in-game items • Virtual gifting a big opportunity
  14. 14. Even Consoles Going F2P • Consoles are joining the F2P revolution • Data shows a strong desire among console gamers for more F2P options • F2P titles that have come to consoles this year or will soon: PlayStation 4: DC Universe Online, Blacklight: Retribution, PlanetSide 2, Warframe, War Thunder Xbox 360: Ascend: Hand of Kul, World of Tanks Xbox One: Killer Instinct, Project Spark
  15. 15. Challenges & Opportunities for F2P ● Currently, relatively low monthly ARPU • $9.15 for F2P vs. $28.86 for P2P ● ● ● 46% of F2P players pay nothing. Quality perception among P2P players. “Pay-to-Win” perception among competitive players of hardcore games (Call of Duty, StarCraft) P2P Players: The gaming experience is better on P2P games 24 35 33 4 5 F2P Players: F2P games are as good as P2P games 16 Strongly agree 35 Agree 35 Neutral Disagree 11 Strongly disagree 2
  16. 16. Where are we Headed? ● F2P will overtake P2P in annual revenue when average spend on F2P games increases from $9 to $17. ● Gamers, and games, less dependent on a single platform (strong consumer desire for connected platforms and devices). ● ● 46% of console gamers said they’d be more likely to play a game with friends if they could across platforms and devices. F2P is a massive opportunity that extends beyond games. • F2P casts the widest net and lowers the barrier to entry, luring gamers interested in other types of digital content (video, music, etc.)
  17. 17. Thank You! Contacts: Robert M. Crawford, Ph.D. Vice President, Research bcrawford@magid.com Robb Lewis Vice President of Marketing robblew@visa.com @robblewis Download at: http://www.playspan.com/white-papers
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