It is estimated that the global expenditure on children’s digital games will reach $2 billion in 2019 From SuperData.
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The range of monetization strategies in video game industry is extensive and expanding, which means that the risks associated with traditional payment methods are also expanding.
Today’s digital video games have many ways to attract players to open their wallets: Micro transaction, downloadable content, game subscription, etc. But gamers can’t buy these digital products with cash, which traditionally is where credit cards work.
Teenagers with credit cards are expected to spend slightly less than $2 billion on digital games this year. More importantly, this spending will continue to grow over the next four years.
Parents were the main source of funds for pre adolescent children’s games. Parents mainly used money as a gift (68%) or as a reward for good performance (62%). However, there are also those who use pre adolescent children’s play expenses as part of their regular allowance (46%).
In view of the sporadic nature of adolescent children’s game consumption, game manufacturers cannot rely on repeated transactions when trying to attract adolescent children’s games. In other words, Netflix’s subscription model is favored by parents (67%), followed by prepaid game purchase (64%), because these payment options are relatively traditional in terms of purchasing content. Parents are less supportive when it comes to newer monetization strategies, such as bootstrapping and energy enhancement.
Teenagers aged 7-12 spend more on game content than on actual games. This means that the game industry needs to find out what is upsetting parents and try to allay their concerns, especially as new monetization strategies become more popular.
The good thing about the game industry is that even with some negative coverage of new monetization strategies, such as bootstrapping, parents often have a positive attitude towards games. Parents also accept their children’s play habits (70%).
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