Understanding the Digital Games Market in Asia: Spending Behavior and Sentiments

ASIASPENDER BEHAVIOR AND SENTIMENTS
JUNE 2015
UNDERSTANDING
GAMESMARKETIN
THEDIGITAL
Digital Games Spending in Asia, 2015 | Copyright © 2015 SuperData Research and Worldpay. All rights reserved. | www.superdataresearch.com | www.worldpay.com/videogames

Contents
2
03
Introduction
04
Overview
Methodology
12
Market Size
Asia Regional Digital Games Revenue, 2015E //
Asia Total Digital Games Revenue, 2014 - 2017E
Segment-Level Regional Revenue and Audience, 2015
19
Playing and Spending Behavior
Demographic Breakdown: Gender, Income and Age
PC Game Genre Preferences
Free-to-Play MMO Conversion and ARPPU, 2015E
Subscription MMO Conversion and ARPPU, 2015E
Premium PC Game Conversion and ARPPU, 2015E
25
Monetization and Payment Preferences
Game Billing Method Preference
Likelihood of Repeat In-Game Purchases
Spender Preferences by PC Game Billing Type
Payment Method Preference by Country
Reasons for Incomplete Purchases
Factors Likely to Increase Spending
39
Everything Else
Terminology
Payment Methods
Devices
Geographies
About SuperData Research & Worldpay
SuperData Research Market Data
Contact

Introduction
3
Asia’s digital games revenue nears $20B with a CAGR
of 6.13% by 2017E.*
Asia’s digital games landscape continues to grow at a staggering rate, highlighting its current and
future potential. Merchants must be increasingly strategic as to how they navigate this market as each
country has a particular payments proﬁle. This report focuses on the PC digital games consumer, and
answers the following questions:
• Which digital gaming segments show the greatest potential for growth?
• How does purchasing power diﬀer by country?
• How is spending unique across PC audiences?
• Do consumers prefer free-to-play, subscription or premium PC game billing models and why?
• What payment methods do PC gamers use and how does preference vary across countries?
• What factors can increase spending in key Asian markets?
*SuperData Research

In this study:
Methodology
5
Data:
*Qualiﬁed respondents include residents of China, South Korea and Japan aged 18+ who have made online purchases of digital content for PC/Mac games in the past three months.
The data and ﬁgures mentioned in this report (including, but not limited to, the relevant percentages) refer to information collected by SuperData Research and Worldpay in the context of the study.
Time
Period:6,289,505 unique
transactions and a
survey of 1,451 qualified
respondents.*
October 2011 to
December 2014 (data);
March 2015 (survey)
User
Base:
1,347,101 unique MMO
and Digital PC gamers.
Analysis:
Comparative analysis
based on industry-
relevant metrics.
SuperData Research’s Methodology
01
Data
Every month we collect, in an
anonymized format, the spending
data of millions of unique paying
online gamers directly from
publishers and developers, totaling
50+ publishers and 450+ game titles.
03
Analysis
We combine the digital point-of-sale
data with qualitative consumer
insights to speak to the “why” of the
market.
02
Collection
We clean, aggregate, and
analyze these data to
establish market
benchmarks and models for
all segments of digital
games.
04
Reporting
Our research covers
everything from worldwide
genre benchmarks to title-
level KPIs, country-level
deep dives to brand equity.

Asian digital games market nears $20B in 2015E
Digital games revenue, 2015E
Asia digital games revenue ($bil)
2014
2015E
2016E
2017E $22.3B
$21.1B
$19.8B
$18.8B
Asia market share by country
South Korea and Japan combined account for 65% of
Asia’s revenue despite having only a tenth of China’s
population. Digital games revenue in Japan and Korea is
characterized by high individual spending and slow but steady
growth. Meanwhile, China’s revenue increase largely stems
from a massive inﬂux of low-spending mobile players.
S. Korea 11%
A robust mobile market and the popularity of free-to-play MMOs fuel strong growth in Asia.
7
China
$7.5B
South Korea
$2.2B
Japan
$8.8B
*Rest of Asia refers to India, Indonesia, Philippines, Saudi Arabia, Thailand, United Arab Emirates and Vietnam.
China 38%
Japan 44%
Rest of Asia* 7%

Social gaming plateaus in Asia at $2.3B
Despite attracting some new players, most social spending players are moving to mobile.
Revenue and Audience (MAU)
Social games market, 2015E
$67M
$317M
$1.7B
3M11M
468M
China Japan S. Korea China Japan S. Korea
8
Social games stagnate at nearly $2.3B in Asia as its
largest market faces an exodus to mobile. Growth in
the Chinese social games market is quickly decelerating,
with revenue expected to grow by a modest 7% in 2015E,
down from 22% in 2014.
Korea’s social games are still recovering from the
2014 Facebook ban. Last September, concerns over
casino games spurred the Korean government to ban all
Facebook games until they cleared a formal approval
process. While some games and players have slowly
returned, many have made the switch to mobile social
games such as Anipang for Kakao.
2014
2015E
2016E
2017E $2.48
$2.33
$2.27
$2.27
Asia social games monthly active users (mil)
Asia social games revenue ($bil)
2014
2015E
2016E
2017E 581
557
535
507

Mobile makes up 59% of digital revenue in Asia
Mobile is the largest segment in every country and overtakes 71% of revenue in Japan.
Mobile games market, 2015E
$1.3B
$6.3B
$3.6B
38M
133M
680M
9
China’s mobile audience will grow by 6% in 2015E.
With roughly two-thirds of Asia’s entire mobile audience,
China sees a steady inﬂux of new players that continues to
drive growth.
Mobile players in Korea and Japan spend over twice
as much as players in China. Combined revenue from
the two countries surpasses China’s by $4B in 2015E
despite having a quarter of the players.
2014
2015E
2016E
2017E $13.6
$12.8
$11.7
$11.1
Asia mobile games monthly active users (bil)
Asia mobile games revenue ($bil)
2014
2015E
2016E
2017E 1.2
1.1
0.9
0.8

MMOs earn a fifth of Asia’s digital revenue
Free-to-play makes up almost 80% of Asia’s $4.2B MMO market, and continues to grow.
MMO games market, 2015E
$0.5B
$1.0B
$1.5B
11M
24M
103M
10
$77M
$216M
$512M
1M
2M
8M
Free-‐to-‐play
Subscrip1on
Free-to-play MMO players outnumber pay-to-play 13-
to-1. In 2015E, free-to-play adds four million new players as
pay-to-play’s audience continues to slowly contract.
Successful publishers such as Korea’s Nexon and NCSOFT
have thus focused on making free-to-play MMOs for Asia’s
audiences.
Free-to-play MMO revenue gains 11% in 2015E as
pay-to-play revenue drops 12%. On average, pay-to-play
MMO players spend one-tenth what their free-to-play
counterparts spend.
Asia MMO games revenue ($bil)
Asia MMO games monthly active users (mil)
$0.8
$0.8
$0.9
$1.0
$3.8
$3.5
$3.3
$3.0
10
11
12
12
170
166
160
1562014
2015E
2016E
2017E
2014
2015E
2016E
2017E

Digital console is the smallest segment in Asia
Revenue from console totals 3% of the Asian digital games market due to China’s lack of participation.
Revenue and Audience (MUU)
Digital console games market,
$95M
$504M
$40M
5M
15M
12M
11
China and Korea account for only a ﬁfth of Asia’s
console revenue. A 14-year ban on consoles in China and
a PC-focused eSports culture in Korea have prevented the
segment from ﬁnding an addressable audience in either
country.
Japan earns almost four times as much revenue
from digital console as China and Korea combined.
Home to Sony and Nintendo, Japan is at the core of the
global digital console market and its audience has steadily
transitioned to the newest generation’s digital focus.
2014
2015E
2016E
2017E $712
$703
$689
$637
Asia digital console games
monthly unique users (mil)
Asia digital console games revenue ($mil)
2014
2015E
2016E
2017E 37
36
36
34
2015E

Digital PC has a small but dedicated audience
High spending in Japan and Korea earn the two markets 79% of Asia’s digital PC revenue.
Revenue and Audience (MUU)
Digital PC games market, 2015E
$217
$481
$122
4M
7M
17M
12
Revenue for digital PC in Asia will continue to grow at an
average rate of 11% year-over-year. High-spending players drive
growth in Korea and Japan, adding an additional $65MM in revenue
by year’s end with popular titles like Diablo III and StarCraft II.
Digital PC struggles with China’s free-to-play culture. Digital
PC games in China are mostly overlooked in favor of free-to-play
MMOs, which earn 25 times the revenue with an audience 12 times
larger.
Developers are localizing in China by customizing platforms
and payment schemes to the market. Console franchises like
Call of Duty, and NBA 2K are being adapted as free-to-play PC games
to capitalize on China’s massive but low-spending player base.*
2014
2015E
2016E
2017E $991
$914
$895
$781
Asia digital PC games
monthly unique users (mil)
Asia digital PC games revenue ($mil)
2014
2015E
2016E
2017E 36
34
31
29
*Chris Morris, “Why China Allowing Gaming Consoles Won’t Help Game Makers," CNBC, Feb. 2, 2013 (http://www.cnbc.com/id/100427839)

14
Chinese PC spenders make less than half
the income of their Korean and Japanese
counterparts. Adjusted for purchasing power,
the average income in China is one ﬁfth the
income in the U.S.* Despite their lower
spending power, Chinese players have access
to new PC games due to the popularity of
internet cafés.
Half of Korean PC spenders are women.
Korea’s long history of PC gaming has made it a
mainstream activity across genders.
Alternatively, roughly a third of PC spenders in
China and Japan are women.
Paying PC gamers in Japan are older and
more aﬄuent than those in Korea or
China. Younger players in Japan gravitate
toward mobile and handheld gaming while
players who grew up playing on PCs are more
likely to be payers on the platform.
females

50%
males
50%
South
Korea
Average
age
Average
income
$30,659
33
China
Average
age
Average
income
$14,867
34
females

36%
males
64%
females

34%
males
66%
Japan
Average
age
Average
income
$38,359
40
DemographicsofPCspenders PC payers in China have the
lowest spending power
*Purchasing Power Parity Gross Domestic Product Per Capita (American Enterprise Institute)

15
S. Korea
More than a quarter of spenders in Japan prefer action-adventure games.
MMOs lead the PC market in China and Korea
MMOs are the most preferred genre in China and Korea. Almost 30% of Korean payers prefer MMOs
while in China roughly 40% favor the genre. Free-to-play MMOs such as League of Legends appeal particularly
to low-spending Chinese players because of their low barrier to entry.
Nearly half of spenders in Japan prefer action-adventure and role-playing games. These two genres
are popular on consoles, a platform that has a rich history in Japan. Thus, Resident Evil Revelations 2 and
other successful PC games in the region are those primarily intended for the console audience.
Q: In the past 3 months, in which of the following PC/Mac game genres did you make the MOST online purchases for digital content?
GenrepreferenceforPCspenders
China Japan
MMO/MMOG
28%
Ac1on-‐

Adventure
14%First-‐person

shooter
11%
Role-‐playing
12%
Simula1on
10%
Other
26%
MMO/MMOG
39%
Ac1on-‐

Adventure
15%
First-‐person

shooter
11%
Role-‐playing
11%
Racing
7%
Other
16%
MMO/MMOG
27%
Ac1on-‐

Adventure
18%17%
Role-‐playing
8%
Collec1ble

card
6%
Other
24%
Simula1on

Korean and Japanese players are almost twice as likely as those in China to purchase free-to-play MMO
content. Only 7% of Chinese players pay, and they are unlikely to stick with games that have restrictive paywalls due to
their lower purchasing power and the plethora of free games from which they can choose.
Korean and Japanese payers spend nearly double that of their Chinese counterparts. Monthly spending in Japan
and Korea is almost $30 for free-to-play MMOs. Despite having a combined audience that accounts for less than 40% of
China’s user base, their joint revenue is equal to that of China.
Chinese spending increases with growing spending power and market maturation. A 7% increase in disposable
income over the past year* helps boost spending in free-to-play MMOs by 12% year-over-year. China’s market still shows a
high potential for growth as opposed to more mature markets like the U.S. and Western Europe, where spending growth is
less than 10%.†
16
Free-to-playMMOspending,2015E
On the other hand, Chinese players spend roughly half that of their Asian counterparts.
F2P MMO spending nears $30 in Japan and Korea
12.1%
11.8%
7.0%CN
JP
KR
Conversion Averagerevenueperpayinguser(ARPPU)
$29.18
$29.73
$17.79CN
JP
KR
*China Bureau of Statistics †SuperData Research

17
Japanese spenders pay up to two times more for subscriptions than spenders in China and Korea.
In Korea and China, subscribers can pay hourly instead of monthly, so casual players pull down average
spending ﬁgures. However, even Japanese players spend less on subscription fees than their counterparts in
the U.S. and Western Europe, where the average is roughly $15.
Only 1 in 10 Korean and Japanese players pays for additional content in subscription MMOs. Players
in these regions are more than 30% likelier to buy additional content than those in China due to their higher
spending power.
SubscriptionMMOspending,2015E
Japanese spenders pay the most for both subscription fees and additional content.
Subscription MMO spending is highest in Japan
$8.70
$10.92
$5.37
Averagemonthlyspendingonsubscriptionfees
CN
JP
KR
AdditionalcontentARPPU
$14.84
$16.15
$12.07CN
JP
KR
CN
JP
KR
Additionalcontentconversion
11.8%
11.4%
8.2%

CN
JP
KR
18
Additional content ARPPU for premium games is
more than 30% higher in Korea and Japan than in
China. Full-game ARPPU is over $33 in all three
countries, but payers in Korea and Japan spend roughly
$10 more than Chinese payers on additional content
each month.
Premium games still have diﬃculty enticing
players to purchase content after their initial full
game purchase. After buying a full game upfront, less
than 3% of players in the region purchase additional
content.
DigitalPCfullgamespending,2015E
Players in Korea and Japan are over six times more likely to buy full games.
Chinese gamers rarely pay for PC games upfront
CN
JP
KR
Additionalcontentconversion
6.0%
7.1%
0.6%
AdditionalcontentARPPU
$23.12
$26.92
$15.58
DigitalPCadditionalcontentspending,2015E
CN
JP
KR
Fullgameconversion
9.4%
10.5%
1.5%CN
JP
KR
FullgameARPPU
$36.09
$37.20
$33.49
Less than 2% of Chinese PC players buy digital
PC games. Unlike in Korea and Japan, premium
games (games purchased upfront) have never been
mainstream in China. Therefore, the Chinese
addressable audience has already moved on to game
types with a lower barrier to entry.
Full game conversion in Japan and Korea is
comparable to mature western markets. Full
game conversion in most western markets vacillates
between 8% and 10%, putting Japan and Korea on par
with mature markets like the U.S. and the U.K.

Monetization
&Payment
Preference

20
Q: Rank the following PC/Mac game digital billing types in order of preference.
F2P P2P Premium
PCgamebillingmethodpreference
China Japan S.Korea
16%17%
67%
22%
19%
59%
24%
21%
55%
PC spenders in
China most
strongly prefer
the free-to-play
billing model.
Chinese payers are 14%
more likely than Koreans
and 23% more likely than
Japanese to favor free-to-
play PC games thanks to
the ﬂexible spending they
oﬀer.
F2P P2P Premium F2P P2P Premium

21
Q: In the past 3 months, once you purchased digital content in ANY PC/Mac game, how often did you make another purchase in that same game?
Likelihoodofrepeatpurchasesinasinglegame
Always Often Sometimes Rarely Never
6%22%46%25%2%
29%39%22%6%4%
15%27%49%7%3%
China
Japan
S. Korea
More than two-thirds of Japanese spenders rarely or never buy content more than once in
the same game. Japanese spenders show a preference for upfront spending as they are the most
likely to favor premium games.
After making their ﬁrst purchase, Chinese spenders are almost three times likelier than
those in Japan or Korea to make continue making purchases in the same game. China’s
strong preference for free-to-play means payers often make cheap, but frequent, in-game
purchases.
Despite being least likely to spend, a quarter of Chinese payers often spend more after the first purchase.
Chinese are likeliest to make repeat purchases

22
ReasonsPCspenderspreferfree-to-play
Almost half of Chinese and Korean spenders use F2P’s low barrier to entry to recruit friends.
F2P payers prioritize flexible spending & social play
25%
38%41%
66%
21%
36%
13%
68%
41%41%45%
56%
China
Japan
Korea
Choosing how
much to spend
No spending
commitment
Ease of getting
friends to play
Selection of
purchasable items
The majority of spenders in all three markets enjoy the ability to control their spending with free-to-play. For
those willing to make in-game purchases, free-to-play games offer a highly customizable experience.
A low barrier to entry for friends is a benefit of free-to-play for almost half of Chinese and Korean spenders.
Free-to-play billing lets payers in these countries easily recruit friends to join them in multiplayer PC games. The ease of
social play increases the perceived value of a game and creates an incentive to engage with a single game longer.
Two out of five Chinese spenders prefer free-to-play games because they can choose to play without
spending. Chinese spenders are over 60% more likely to prefer free-to-play for its lack of a spending commitment than
their Japanese and Korean counterparts. Q: Why do you prefer a FREE-TO-PLAY billing model for the PC/Mac genres you selected above?

23
ReasonsPCspendersprefersubscriptions
More than half of spenders who prefer P2P or premium games want to pay upfront.
Fixed costs attract subscription & premium payers
16%
30%
50%53%
12%
24%
42%
49%
19%
45%
55%
60%
China Japan Korea
Knowing
monthly costs
Q: Why do you prefer a SUBSCRIPTION billing model for the PC/Mac genres you selected above? | Q: Why do you prefer a PREMIUM billing model for the PC/Mac genres you selected above?
ReasonsPCspenderspreferpremiumbilling
Ability to stop
paying
Full game
access
No ads
20%
41%
77%
16%
38%
64%
16%
52%
74%
Paying once for
full game access
Knowing cost of
full game access
No ads
Predictable monthly costs are the
biggest draw for subscription games.
Chinese payers are over 10% more likely than
those in Japan or Korea to prefer pay-to-play
since subscription fees are easier to budget
in advance than free-to-play spending.
Roughly seven out of ten spenders who
prefer the premium billing model look to
avoid in-game charges. Premium games
have the lowest additional content
conversion rates as most premium players
only want to pay for a game once.

Alipay UPI Bank VISA Debit Alipay VISA Bank UPI Debit Alipay UPI VISA Bank Debit
24
Alipay’s localized payment platform is a long-trusted brand amongst Chinese spenders.
Roughly 60% of Chinese PC spenders prefer Alipay
5%6%7%8%
61%
7%7%8%8%
57%
5%7%8%8%
56%
Over half of PC spenders in China prefer local mainstay Alipay over global alternatives. Alibaba’s
Alipay offers no transaction fees, convenience and localization to Chinese spenders. The ewallet’s
omnipresence in China means merchants who do not offer it lose out on more than half of potential
spenders.
Tencent fails to find the same success for its payment method as it does for online games.
Tencent’s rival to Alipay, Tenpay, is not one of China’s five most popular payment methods for PC games even
though Tencent operates several of China’s biggest games.
Q: In the past 3 months, what payment method did you use MOST to make purchases in FREE-TO-PLAY/SUBSCRIPTION/FULL PC/Mac games?
PaymentbrandpreferencesinChina
CardTransferCardTransferCardTransfer
Free-to-playvs.Subscriptionvs.Premium

ReasonsforChinesePCspenderpaymentpreferences
25
Q: Why did you use the payment method you used MOST when making purchases in FREE-TO-PLAY SUBSCRIPTION-BASED PC/Mac games?
Three quarters of
Chinese spenders
choose their
preferred payment
method for its
convenience.
Mobile eWallets like Alipay
provide a convenient and trusted
payment method for spenders
who play games in public Internet
cafés.
12%12%
25%
28%
73%
15%
13%
25%
27%
75%
11%
14%
32%
30%
75% Free-to-play
Subscription
Premium
Most
convenient
Most secure Preferred for all
game
purchases
No other payment
methods oﬀered
Only payment
method
available to user

VISA JCB Bank MasterCard Debit VISA JCB Bank MasterCard Debit VISA JCB Bank MasterCard Debit
26
Over 60% of spenders favor credit cards, with VISA and JCB securing top spots.
Credit cards overtake Japanese payment preference
4%6%
12%15%
44%
5%8%10%
16%
44%
4%8%
13%18%
44%
PaymentbrandpreferencesinJapan
CardTransferCardTransferCardTransfer
Cash on delivery services like konbini (convenience store) payments account for close to 40% of some
Worldpay merchants’ e-transactions. Konbini is a payment method wherein consumers pay their online transactions at
a convenience store and, once payment is conﬁrmed, their goods are shipped or released.
While global credit card VISA is preferred by two out of ﬁve spenders, local card JCB captures almost a
quarter of spender preferences. JCB is the only local credit card to gain popularity with more than 10% of spenders.
Bank transfers still take hold of over a tenth of spenders’ preferred methods. Bank transfers are the most popular
non-credit card payment method but are being edged out by the popularity of credit cards.
12%
of e-transactions in
Japan are done
through konbini
payments.

27
9%
13%
17%
31%
52%
11%
8%
19%
26%
56%
9%9%
18%
30%
56%
Free-to-play
Subscription
Premium
Most
convenient
Most securePreferred for all
game
purchases
No other payment
methods oﬀered
Only payment
method
available to user
More than a quarter
of Japanese
spenders use the
same payment
method for all
gaming purchases.
While convenience plays an
important role when it comes to
payment preference, almost a
third of Japanese spenders stick
with just one payment method.
ReasonsforJapanesePCspenderpaymentpreferences

VISA Local Bank BC Mobile VISA Local Bank BC MasterCard VISA Local Bank MasterCard BC
28
Over a third of spenders prefer local payment options like BC Card and mobile carrier billing.
Koreans look for localized payment methods
10%10%13%18%
27%
8%8%
15%16%
29%
7%9%
14%15%
32%
PaymentbrandpreferencesinSouthKorea
CardTransferTransferTransfer
Credit
Card
Credit
Card
CardCredit
Card
Card Carrier
Billing
Korean PC spenders prefer local payment options over many global methods. Roughly a
quarter of PC spenders prefer local credit cards like BC card while mobile carrier billing emerges
as a free-to-play favorite.
Bank transfers are Korea’s second most popular PC game payment method. Bank
transfers provide a way for Koreans without credit cards and those playing in public cafes
to securely pay for game content.

29
11%
16%17%
18%
60%
11%
16%17%
21%
69%
11%
13%
15%
18%
71%
Free-to-play
Subscription
Premium
Most
convenient
Most secure Preferred for all
game
purchases
No other payment
methods oﬀered
Only payment
method
available to user
ReasonsforKoreanPCspenderpaymentpreferences
Free-to-play and
subscription
spenders are over
10% more likely than
premium spenders
to choose a
payment option for
its convenience.
These spenders buy in-game
content more often than
premium spenders and care
more about easy-to-use
checkouts.

30
ReasonsPCspendersdonotcompletepurchases
Roughly a quarter of spenders abandon purchases due to security fears.
Long or non-secure checkouts lose PC sales
5%
12%11%
17%19%
26%29%
7%3%7%11%
20%
13%
24%
6%7%
14%14%
25%30%31%
China
Japan
Korea
Concerns that
payment info is
not secure
Q: Have there ever been instances when you have not completed a purchase for digital gaming content due to issues with the payment process? If so, what were the issues?
Too many
checkout steps
Checkout
system
complexity
Prices in foreign
currency
Preferred payment
method not
accepted
Pop-up ads Poor checkout
site appearance
Security concerns are the chief reason for incomplete checkouts. Roughly 3 out of 10 spenders in
Korea and China leave a checkout if it is not clear their payment information will be secure.
The prevalence of Internet cafes means more than a third of Korean and Chinese PC spenders are
turned off by long checkout processes. Alternatively, Japanese spenders are less deterred by the
number of checkout steps and more concerned with how difficult the checkout process is to understand.
Almost a fifth of Koreans abandon checkouts without localized pricing. Korean PC spenders are
roughly 20% more likely than Chinese spenders and over 50% more likely than Japanese spenders to leave a
checkout due to foreign pricing.

31
Q: What would make you more likely to purchase digital gaming content for your PC?
30%
34%
63%
43%
27%
35%
27%
46%
65%
China
Japan
S. Korea
More items/
games worth
purchasing
ReasonsPCspenderswouldmakemore
purchases
Easier
checkout
process
More payment
options
Content is king for spenders in China
and South Korea. More than 60% of payers
in these markets would increase their
purchases if there was more game content
worth buying.
Easier checkout processes would
entice almost half of Chinese payers to
spend more. While many Chinese players
still spend despite complications, nearly a
third say they have abandoned checkouts
that are too complicated due to things like
website re-directs or unclear digital to real-
life currency conversions.
Forty-three percent (43%) of Japanese
spenders point to more varied payment
options as a way to purchase more.
More than a quarter of Japanese spenders
favor using one payment method for all
game purchases, so if their preferred
payment method is not available, they are
less likely to spend.

Executive Summary
32
Convenience is key for converting Chinese players who depend on localized payments.
Merchants can lose roughly a third of potential consumers due to lack of payment convenience in China. Worldpay has
developed a partnership with Alipay, the most popular payment brand amongst PC spenders, that is already helping
major game companies enter the market. Offering Alipay can facilitate payment convenience for over 50% of a
merchants’ potential users.
Localizing for South Korea or China may not work for players in Japan.
Japanese players are unique in Asia since they tend to spend more and have a higher acceptance of subscription and
premium billing models than their Korean and Chinese counterparts. The maturity of Japan’s digital games market has
placed a high importance on the availability of local and alternative payment options. Cash-based payments like
Konbini and bank transfers are popular in the country, along with local card schemes like JCB, making it essential for
merchants to work with a partner that has nurtured a relationship with these payment types. Worldpay has a local
acquiring presence in the market and long-standing relationships with JCB, VISA and Konbini. Since more than a
quarter of gamers us the same method for every purchase, providing consumers their payment method of choice can
secure higher conversion rates.
It can be a challenge to cater to the varied payment preferences of Korean players.
As with China, Korean players are accustomed to the free-to-play billing model. Thus, it is vital to offer an array of local
and alternative payment methods while providing a convenient way for consumers to make smaller impulse
purchases. In an environment like this it is ever-important to work with an experienced payments parter in order to
build a localized strategy.
To find out more about Worldpay’s capabilities in Asia, head to
worldpay.com/dropusaline.
Asia cannot be treated as one market; each country has distinct
preferences across payments and billing models and should be
nurtured with this in mind.

Terminology
34
Additional Content: Downloadable add-ons
available for purchase after the original
installation of a full game, including map packs,
expansions, premium content, vanity items, in-
game currency, etc.
Average Revenue Per Paying User (ARPPU):
The average revenue generated by a paying user
within a particular month.
• Additional Content Revenue: Deﬁned as: MUU
x Additional Content Conversion x Additional
Content ARPAverage Revenue Per Paying User
(ARPPU): The average revenue generated by a
paying user within a particular month.
• Additional Content ARPPU refers to the
average additional content revenue generated
by a paying monthly active user within a
particular month.
• Microtransaction ARPPU refers to the average
microtransaction revenue generated by a
paying monthly active user within a particular
month.
Conversion Rate: The percentage or rate of
monthly active users who have shifted from non-
paying to paying users.
• Additional Content Conversion Rate refers to
the percentage of monthly active users who
have made at least one additional content
purchase within a particular month.
• Microtransaction Conversion Rate refers to
the percentage of monthly active users who
have made at least one in-game
microtransaction purchase within a particular
month.
Digital games: Games and additional content
downloaded and played on a digitally-capable
device such as a smartphone, tablet, PC/Mac,
console or handheld gaming device. This does
not include physical copies of games.
Downloadable Content: Refers to both full
game downloads and additional content
downloads. The two major channels of
distribution are Console and PC. Deﬁned as the
sum: Full Game Downloads + Additional Content
Downloads.

Terminology, cont’d
35
Free-to-Play/Freemium (F2P): Offering a
game, product or service free of charge (such as
software, web services or other) while charging a
premium for advanced features, functionality, or
related products like virtual goods and services.
Full game: A base game that is purchased and/
or installed, not including any additional content
or in-game items that are purchasable and/or
downloadable after the initial installation.
In-Game Purchase: The purchase of virtual
goods within a game after its initial installation.
Microtransactions: Small in-game purchases
of economy-based downloadable content, such
as in-game currency, vanity items, weapons,
songs, vehicles and class unlocks.
Mobile: Games played on smart mobile devices
such as smartphones and tablets that are strictly
not played on a social networking platform.
These games are purchased and/or downloaded
through an app store and earn digital revenue
from one-off app purchases and in-game
purchases. Does not include Social Mobile Data.
Monthly Average Users (MAU): The number
of users who log in and play a game at least once
over the course of a month, including trial and
free users. Users can be counted more than once
within a particular game if they log in through
multiple accounts, or within a particular genre/
category if they log into multiple games.
Monthly Unique Users (MUU): The number of
unique users who log in and play a game at least
once over the course of a month, including trial
and free users. Multiple account users and
multiple game users are adjusted to prevent
counting unique individuals more than once.
Pay-to-Play (P2P): Requiring a purchase or
subscription in order to gain full access to a
game, product or service, while sometimes also
charging a premium for virtual goods or
additional content.
Platform: A specific combination of hardware
and software in order to play a certain game
category. E.g., console, PC, smartphone,
handheld gaming device, etc.

Terminology, cont’d
36
Revenue (category or genre definition):
Defined as: MAU or MUU x Conversion x ARPPU.
The sum of revenue generated by full-game sales
and/or in-game purchases.
• Additional Content Revenue: Defined as:
MUU x Additional Content Conversion x
Additional Content ARPPU. Total digital sale
of map packs, expansions, premium content,
and vanity items.
• Digital Revenue: Defined as the sum of all Full
Game Revenue, Microtransaction Revenue,
Subscription Revenue, and Additional
Content Revenue, each where applicable.
Revenue generated from downloadable
content.
• Full Game Revenue: Revenue generated from
the sale and delivery of a base game. Does
not include Additional Content/
Microtransaction revenue.
• Microtransaction Revenue: Defined as: MUU
or MAU x Microtransaction Conversion Rate x
Microtransaction ARPPU.
• Subscription Revenue: Defined as:
Subscriptions x Average Subscription Fee.
Revenue generated from digital subscription
fees.
Segment: A game category that has
requirements unique to other categories. E.g.,
Social, Mobile, MMO, PC, Console, etc.
Virtual Goods: In-game items or game-related
services, such as a virtual currency or temporary
subscriptions that enable or enhance game play.

Payment Methods
37
Bank Transfer refer to both online (real-time)
and offline bank transfers. Online (real-time)
bank transfers send payment instantly from a
users bank account to the receiver. Offline bank
transfers require the payer to generate an invoice
online with a unique barcode, present the invoice
to a bank in-person or online and pay the invoice
in full. It can take several days for payment to be
confirmed and goods to be released.
Cash on Delivery services are similar to offline
bank transfers in that they allow the user to
generate an invoice and pay for goods at a
specified location like a convenience store.
Goods are rendered upon confirmation that the
merchant has received payment. E.g., Konbini.
Credit Cards allow cardholders to pay for goods
with a credit line provided by a financial
institution with the promise that they will
reimburse the institution, often with interest, for
their purchases. E.g., VISA, MasterCard,
American Express.
Debit Cards are used like credit cards but take
funds from the user’s bank account instead of a
credit line and do not accrue interest.
Ewallets allow users to store their payment
information for a variety of methods, including
credit cards, debit cards, and bank transfers. E.g.,
Alipay.
Local Credit Cards generally service residents
of the country where their financial institutions
are based. E.g., JCB, UPI (China UnionPay), BC
Card.
Mobile Carrier Billing services make a
payment for goods on behalf of the consumer
and then places the charge on the consumer’s
phone bill. E.g., Boku, Mopay

Devices
38
Console: A device that connects to a television
in order to allow for video gameplay. Newer
generations of consoles (2005 and after) allow for
media consumption outside of video games such
as downloaded and streaming television, movies
and music. E.g., Nintendo Entertainment System
(NES), Sega Genesis, PlayStation, Xbox One, Xbox
360, PS4, Wii U.
Feature phone: Mobile phones that have more
features than a standard call and text capable
mobile but less features than a smartphone. Less
expensive than smartphones but have limited
third party application integration.
Handheld gaming device/console: A
dedicated handheld gaming device that is
portable and has a built-in screen, controller and
audio output. E.g., GameBoy, PlayStation
Portable, Nintendo 3DS, NVIDIA SHIELD
portable.
PC/Mac: A desktop or laptop computer with the
capabilities to install and run video games.
Smartphone: Mobile phones with computer-
enabled features such as data storage, high-
speed Internet access, media playback, and
email capabilities. Support third party application
integration. E.g., iPhone, Samsung Galaxy, HTC,
Nokia Lumia, Amazon Fire Phone.
Tablet: Portable devices that combine the
capabilities of a smartphone and a laptop while
being larger than the former but smaller than the
latter. Support third party application integration.
E.g., iPad, Samsung Galaxy Tab, Microsoft
Surface, Kindle Fire.

Geographies
39
Asia: China, India, Indonesia, Japan, Philippines,
Saudi Arabia, South Korea, Thailand, United Arab
Emirates and Vietnam.
Europe: Austria, Belarus, Belgium, Bulgaria,
Czech Republic, Denmark, Estonia, Finland,
France, Germany, Greece, Hungary, Iceland,
Ireland, Italy, Latvia, Lithuania, Luxembourg,
Monaco, Netherlands, Norway, Poland, Portugal,
Romania, Russia, Serbia. Slovakia, Spain,
Sweden, Switzerland, Turkey, Ukraine and the
United Kingdom.
Latin America: Argentina, Bolivia, Brazil, Chile,
Colombia, Costa Rica, Cuba, Dominican
Republic, Ecuador, El Salvador, French Guyana,
Guatemala, Guyana, Mexico, Nicaragua, Panama,
Paraguay, Peru, Puerto Rico, Suriname, Uruguay
and Venezuela.
North America: Canada and the United States.
Rest of World: Oceania and Africa.

About us
40
Worldpay are one of world’s leading payment
processing companies, powering ecommerce
across the globe. Working with innovative high
growth start-ups to massive multi-national
enterprises, we help optimise their payments
and support them as they expand globally. We
have the experience needed to deliver useful
insights through our analytics, to help you
choose the right payment mix and setup when
moving into new markets or optimising existing
ones, and do this with dedicated support and a
collaborative work process.
To find out more about Worldpay, head to
worldpay.com/videogames, or get in touch at
worldpay.com/dropusaline.
SuperData Research provides market
intelligence on the online, digital and mobile
games industry. By collecting behavioral data
directly from publishers and developers,
SuperData identifies key trends, establishes
revenue estimates, and analyzes market
changes for popular online games, including
MMOs, FPS, casino, virtual worlds, mobile and
social games.
SuperData publishes industry-relevant key
performance indicators. Using our proprietary
data set—pulled directly from publishers and
developers—on millions of paying digital gamers,
we establish monthly benchmarks such as
ARPPU, conversion rates, lifetime value, and
revenues. Customers use our data to evaluate
their performance, identify key growth
opportunities, assess revenue potential,
optimize their efforts, and better understand
their audience’s wants and needs. SuperData’s
client base includes brand owners, developers,
retailers, publishers, VCs, and payment service
providers.
Worldpay and SuperData Research compiled this report. Its findings
are based on extensive surveys of PC digital game spenders across
China, Japan and South Korea.

©SuperData Research and Worldpay 2015. All rights reserved. This document and its content are proprietary to Worldpay and may not be reproduced, published or resold. The information is
provided on an “AS IS” basis for information purposes only and Worldpay makes no warranties of any kind including in relation to the content or suitability. Terms and Conditions apply to all our
services. Worldpay (UK) Limited (Company No: 07316500/ FCA No: 530923), Worldpay Limited (Company No: 03424752 / FCA No: 504504), Worldpay AP Limited (Company No: 5593466 / FCA
No: 502597). Registered Ofﬁce: The Walbrook Building, 25 Walbrook, London EC4N 8AF and authorised by the Financial Conduct Authority under the Payment Service Regulations 2009 for the
provision of payment services. Worldpay (UK) Limited is authorised and regulated by the Financial Conduct Authority for consumer credit activities. Worldpay, the logo and any associated brand
names are all trade marks of the Worldpay group of companies.
Contact us
41
Senior Analyst, Consumer Insights
Stephanie Llamas
stephanie@superdataresearch.com
To ﬁnd out more about Worldpay, head to worldpay.com/videogames, or get in touch at worldpay.com/dropusaline.
For questions about this report:

Understanding the Digital Games Market in Asia: Spending Behavior and Sentiments

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