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Table of Contents

Lead Story

Global acquiring - Part 1

News

Industry Update

Target breach may be U.S. EMV catalyst

Facebook set to become P2P playe

Gift card giveways boost sales, Aite says

Features

Global 'freemium' mobile gaming market advances

Views

Which sales model is right for you? Part 3

Aaron Nasseh
Finical Inc.

Are you sure you want to be a bank?

Cynthia Bailey
The Idea People

Education

Street SmartsSM:
Hiring for success

Tom Waters and Ben Abel
Bank Associates Merchant Services

The impact of coming FANF changes

Ken Musante
Eureka Payments LLC.

Becoming a money transmitter

Adam Atlas
Attorney at Law

Company Profile

Fusion

New Products

Handheld EMV portability

VX 690
VeriFone Inc.

Speed printing at POS

PT340/PT341 Series
OKI Data Americas Inc.

Inspiration

Become a master communicator

Departments

Readers Speak

Resource Guide

Datebook

Skyscraper Ad

The Green Sheet Online Edition

May 26, 2014  •  Issue 14:05:02

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The Mobile Buzz:
Global 'freemium' mobile gaming market advances

The mobile technology revolution has resulted in a robust and expanding worldwide gaming market. From a payments perspective, people get hooked on playing mobile games for free, then start to spend a little money to enhance their gaming experiences. The "freemium" model has thus grown with the penetration of mobile phones in the global marketplace.

New York-based game sector researcher SuperData Research Inc., in collaboration with mobile data analyst TakingData, issued a report that said the mobile gaming market in China will shortly overtake the U.S. market. The researchers said Chinese gamers are on track to spend about $3 billion on mobile games in 2014, while the corresponding U.S. market may have plateaued at $3.2 billion.

According to the Digital Games Market Brief: United States & China, the average revenue per paying customer (ARPPU) in China has grown by 21 percent since 2013 and stands at $32.46, while the ARPPU in the United States is $21.60, up 11 percent in the same time frame.

In China, the conversion rate of turning Chinese free-to-play gamers into in-game payers rests at 2.9 percent, representing 20 percent growth since 2013, the report said. But the U.S. conversion rate of 5 percent is down by 4 percent from 2013, SuperData added, which provides evidence that the U.S. mobile gaming market may have reached saturation.

In-game payment comfort level grows

SuperData noted that Chinese game developers have substantially increased their marketing budgets. In comparing January 2013 marketing costs to January 2014 numbers, marketing costs have more than doubled. Meanwhile, in the U.S. market the cost per install – the amount of money it takes per user for game developers to get users to download and install their gaming apps – has grown by 36 percent since 2013, according to SuperData.

"Developers in both markets will need to focus on researching effective monetization mechanics and their most lucrative audiences in order to conquer an increasingly competitive and ubiquitously free-to-play market," SuperData said.

Additionally, SuperData noted that Chinese and American mobile gamers are more comfortable today in making in-game payments because mobile carriers, third-party payment providers and operators of app stores have increased payment safeguards.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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