Prepaid to become the only “game” in town

Monday, 28 November 2011

Online gaming - Let’s play

The “humble” games console has greatly evolved in the last decade. A gamers’ choice of opponents is no longer limited to their computer or a friend sitting beside them. Thanks largely to better consoles and the increased speed and availability of the internet, you can now challenge virtually (no pun intended) anyone, anywhere, anytime.

The online gaming market is a lucrative one according to Lazard Capital Markets who valued the market at $15 billion in 2009 and predicted strong growth for the foreseeable future. So where does prepaid fit into the equation?

The value proposition that prepaid offers to gaming is a familiar one - access and security. The games sector of prepaid cards has seen growth of roughly 200% in the last two years alone and looks set to keep growing. With many younger gamers not having access to credit/debit cards (or even bank accounts) and others sceptical about the safety of using them online, especially in the wake of the Playstation hack, prepaid offers the perfect solution.

It’s not just the likes of Sony that benefit from gamers buying or subscribing to extra content online though. Take the ‘free’ online games for example. You could spend hours, even days of your life playing to earn the kudos or points to buy a better second life or you could just buy the knowledge or equipment instead.

To quote Dave Etling from Incomm, one of the world’s leading gift card mall providers, “giving a games console with no prepaid card is like giving a kid a toy with no batteries”. Unlike the batteries conundrum on Christmas morning though, the prepaid card problem can be solved in the click of a button.

All the gaming companies need to do is have a secure online prepaid service to offer to gamers and / or the bewildered gift giver. A prepaid programme gives them the ability to sell prepaid cards via their websites or in gift card malls, use them for promotions or allow customers to save for upgrades, new characters or even new games.

Why bother?

For gaming companies and developers, accessing the massive spend potential of online gamers allows them to significantly extend the value of that customer (which, until recently has been limited to the purchase price of the game), creating new and innovative ways to drive more spend.

While for gamers the benefits are obvious too; online gaming makes for a better gaming experience and who amongst us would not want that?

MS