The market for digital game content in Europe is expected to grow to €3.3bn ($4.2bn), according to a new report.
The findings of the new report, ‘Monetizing the European Market for Virtual Currency’, found that this growth was a 89% increase compared with €1.7 billion ($2.2 billion) in 2010.
The report, from DFC Intelligence, Skrill Holdings and Live Gamer, was
presented Thursday March 3, 2011, 1:30pm (PT) at the Game Developers Conference in San Francisco.
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, 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.
