The way to growth in gaming
Growth in mature gaming markets isn’t about more players – it’s about deeper monetization. With modest payer growth in North America and Europe, studios must shift focus from acquiring new payers to maximising value from existing ones, according to a report from gaming data firm Newzoo and gaming payment firm Tebex.
The gaming business is trying to recover from a decline after booming during the pandemic. After the boom, the gaming sector is reported to have laid off around 35,000 people.
A recent report from Newzoo says growth is slowly returning to the global games market despite that global average playtime has been dropping since the first quarter of 2021 when so many were forced to stay at home because of the covid pandemic.
The Newzoo/Tebex report says that offering more ways to pay is an opportunity to unlock higher spend.
“While cards and wallet still dominate in volume, alternative payment methods like Buy Now, Pay Later and cryptocurrencies have higher average transaction values, especially in Western markets. Players using both traditional and alternative payment methods maintain frequency while spending more.”
“Understanding why players spend is as important as how In both North America and Europe, players spend for a variety of reasons – from unlocking exclusive content to progressing faster, but the motivations differ.”
“North American players are more likely to spend for personalisation and self-expression, while European players are more value-conscious, prioritising deals and ad-free experiences. Spending is also spread across a wide range of virtual goods, from content packs and subscriptions to power-ups and cosmetics.”
Key findings:
- North America leads with an average $324.9 spent per payer annually.
- In-game purchases make up nearly 50% of PC game revenue in Europe.
- Alternative payments are unlocking higher spend.
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