$833 million in console micropayments by 2011

[TomO]

A new study from New York-based ABI Research estimates that increasing numbers of gamers will allocate a growing part of their gaming budget towards the purchase of in-game assets such as maps, game related add-ons, casual games, and eventually full blown console titles released digitally.

The research predicts that these micropayments will account for $833 million by 2011 (http://www.pro-g.co.uk/news/26-01-2007-4607.html), with platform holders and publishers looking to generate increased revenue from in-game purchases.

This is already happening with titles on the Xbox 360 and PS3. Both platforms offer online stores from which whole games, add-ons and game related items can be purchased. ABI believes that Microsoft is leading the way with its Xbox Live service, with a strong focus on casual game distribution through the Live Arcade channel, and the recent roll out of its Video Marketplace which offers HD movies and TV shows.

Read the full story (http://www.pro-g.co.uk/news/26-01-2007-4607.html)

[Serapth]

That number seems really low to me. For example, im guessing a good 10% if not more of the 10million 360 owners have purchased geometry wars, at 5$ alone. Thats 5 million off a single game. UNO has to be up there aswell, GRAW addons, Oblivion addons, plus all the music/movies/tv shows people have been downloading lately. Not to mention the 4 Zune owners buying songs.

Frankly, I would expect Microsoft alone to be making easily 833 million *before* 2011.

[Dr.Finger]

At what level does a micropayment become a regular payment?

[Kamalot]

I'll admit, I find myself buying a fair number of Live Arcade games and Virtual Console games.

Here's my take on it...

If I have friends over, paying $6-$8 for a game is a cheap way to pass the time. It costs about the same as renting a movie, except you can play it as much as you like. 4-Player games like the Atomic Tank and Doom are some of the most fun.

I REFUSE to buy gamer pics or themes on the 360. That whole thing is a scam. Who the hell pays for a JPG? A TINY JPG? On top of that, most everything is an advertisement for some kind of game or movie. Last time I checked, consumers didn't have to PAY to advertise something. That whole model is downright WRONG!

[gzsfrk]

I wouldn't consider purchasing any of the XBLA game purchases to be micropayments. I thought micropayments on Live generally only referred to things like add-ons, themes, etc.. Geometry Wars = purchase, Horse armor = (ridiculous) micro payment.

If you're going to count XBLA titles, then you might as well lump all Steam purchases into that total as well.

[Kamalot]

I wouldn't consider purchasing any of the XBLA game purchases to be micropayments. I thought micropayments on Live generally only referred to things like add-ons, themes, etc.. Geometry Wars = purchase, Horse armor = (ridiculous) micro payment.

If you're going to count XBLA titles, then you might as well lump all Steam purchases into that total as well.
I believe the article includes full XBLA games as part of the total number of $.

If Micropayments only includes paid add-ons for games, then I have purchased $0.

[Serapth]

From the articles wording, it sounds like anything, up to and including full games that you download is considered in that number. Again, that seems low.

Movies, musics, etc... are expected to reach 1.1B.

[Xerxes]

SotN will sell $833 million dollars worth on it's on.

[EWolfmanD]

At what level does a micropayment become a regular payment?


I'm not sure, but I would consider most of the purchases to be regular payments. Five or ten dollars for a game isn't micro at all. Unfortunately, it seems that "micropayment" has stuck as the description for all these transactions although it's misleading. It's really just a purchase, but I guess people think that adding "micro" in there will make people think it's cheap.

I would consider micropayments to be under $1 at least, and probably even lower really. I used to occassionally buy episodes of a radio program about comics for about $0.25 per episode. Unfortunately, the company that used to handle the micropayments, Bitpass, just closed down so I guess that business model wasn't working yet. I think micropayments are mainly a way to sell things for small amounts and not have all the money go towards Paypal or credit card fees. For instance, someone has some small comic or something that they're willing to sell for $.10 or $.25 each to cover costs or to make a small profit, but if you use Paypal, I'm pretty sure that they charge more than that for handling the transaction for you. So instead they sell it for a lot more than it's worth so they still get some money after charges. That's not really a good example, but I'm sure that there is some business model that would work with selling things for a very small amount, especially with so much content becoming available online.

[Johan]

I agree with those who see the analysis here confounding two different types of purchases (regular retail game purchases through Arcade, and micropayment add-ons like themes, gamer pics, etc.).

I have no problem with any of it, frankly, because nobody holds a gun to my head to buy any of it. I like choices, and having more of them is fine with me. What I want, I get. What I don't want, I don't get.

The complaints about this stuff totally miss the mark, in my opinion. Don't buy the damn micro-stuff if you have a problem with it (Kamalot is doing just that, and good for him!!!). Vote with your dollars. If other people want to buy it, why should that bother you? I don't piss on people's decisions to blow bucks on smokes, booze, $99 Legendary-edition rip-offs (not a micropayment, but dumb as hell in my book...but more power to you!), and shit. Who cares? Options are nice. Get what you want, and skip what you don't. And give others a freaking break from the high-horse of "horse armor is stupid...you're a dick for buying it" land...

[Vulture]

Well the idea of Micro Payments originally meant payments of a $1 and under. The idea was that you could have a CC funded account via a central server and websites would sell content for "micro" amounts. This is what Dr. Cat (formerly of Origin Systems) was trying to do back in '94. This was before the various ad revenue web models were functional.

But the idea was always that you could buy distinct items for games (originally MMO) to fund the game servers themselves. Kind of buy your gold here in game thing except items also.

[Serapth]

I agree with those who see the analysis here confounding two different types of purchases (regular retail game purchases through Arcade, and micropayment add-ons like themes, gamer pics, etc.).

I have no problem with any of it, frankly, because nobody holds a gun to my head to buy any of it. I like choices, and having more of them is fine with me. What I want, I get. What I don't want, I don't get.

The complaints about this stuff totally miss the mark, in my opinion. Don't buy the damn micro-stuff if you have a problem with it (Kamalot is doing just that, and good for him!!!). Vote with your dollars. If other people want to buy it, why should that bother you? I don't piss on people's decisions to blow bucks on smokes, booze, $99 Legendary-edition rip-offs (not a micropayment, but dumb as hell in my book...but more power to you!), and shit. Who cares? Options are nice. Get what you want, and skip what you don't. And give others a freaking break from the high-horse of "horse armor is stupid...you're a dick for buying it" land...


Thats true... to a point. The Micropayments that piss my off are the ones the fragment, or potentially fragment multiplayer games. Buying parts in ChromeHounds, buying cars in PGR, buying online maps. Those are the ones that arent quite as optional as all the rest.

[Johan]

Thats true... to a point. The Micropayments that piss my off are the ones the fragment, or potentially fragment multiplayer games. Buying parts in ChromeHounds, buying cars in PGR, buying online maps. Those are the ones that arent quite as optional as all the rest.

I see your point, but I still believe that, ultimately, it's up to the individual consumer whether to pony up for stuff on Live or not.

Even with the issue of multiplayer, parts/weapons for Chromehouds, etc., there's little difference between that and individuals who buy accessories which help their gaming (perhaps a controller with macro-button abilities that memorizes special moves, wheels for racing games, etc.).

It's a choice. As long as I'm not FORCED as a part of subscribing to Live into buying micro/macro crap, I'm happy it's offered.

Except for EA. 90% of everything EA does sucks.

/not including Burnout, Oddworld: Stranger's Wrath, LOTR:BFME, Spore, and a very small list of others! :)

[Serapth]

I see your point, but I still believe that, ultimately, it's up to the individual consumer whether to pony up for stuff on Live or not.

Even with the issue of multiplayer, parts/weapons for Chromehouds, etc., there's little difference between that and individuals who buy accessories which help their gaming (perhaps a controller with macro-button abilities that memorizes special moves, wheels for racing games, etc.).

Can you imagine if you could buy two versions of Half Life at retail. One for MSRP that had base CounterStrike. Another, version that improved your accuracey online and gave you better weapons for 5$ more. Which version do you think most people would buy?

This is my fear with Microtransactions, but sofar it hasnt been too bad.

My other problem is, like what happened with GRAW. If you buy the Addon, you can only play with other people that bought the addon. It fragments the user community.