They are performing very well, and we have already gone into reprinting. Until other payment options such as SMS become viable, we feel the prepaid cards will be at least half of our market. Why? Because half of our audience has no access to credit cards for online payments.
How viable a business model is microtransaction gaming in the Asian market?
Nexon pioneered microtransaction gaming in the 90s, and we have survived due to this business model, which is generally called “Item Selling” in Asia. We interchange the terms, but there is nothing “micro” about paying ten dollars for a virtual kart!
The item sales model is an extremely viable model in Asia, and it is proving to be so in North America as well. To put it simply, Nexon reported $230 million in revenue for 2005, the bulk of which stemmed from millions of “microtransactions”.
How accepting of microtransactions do you think Western gamers are?
maple stroy mesos has shown us that Western gamers are as accepting of the business model as Asian gamers. It will take some education, but gamers are smart. Western gamers are quickly picking up on the benefits of microtransactions.
Why do you think microtransactions are so popular in the Asian market, and which regions have you found them to be more popular in?
I feel microtransactions are popular in Asia because it has only been offered in Asia. There are several reasons for its success and popularity in Asia and now North America.
Low Barrier to Entry: Not everyone can afford to pay $60 for a package game or $15 per month for a subscription game. Item Selling games allow gamers to enjoy rich online experiences without the financial and psychological burden of upfront fees. Players can then choose to make purchases when the game becomes meaningful to them. We find this low financial barrier opens the door to reach a truly massive audience.
Choice/Low Switching Costs: Players do not have to choose between one subscription game over another. MMO players are often lacking in time to try another game. Having to pay a subscription on top of their time commitment to a game makes it very difficult for subscription players to try new games.
Customization: We find players like to customize their characters. For some, it is a way of showing off. For others, it is a way of expressing their unique identity. Item selling games give the player an opportunity to be different and create avatars that better reflect themselves online.