Consumers Shift to Real World Cash for Virtual Purchases

August 4, 2011

According to a new study conducted by VGMarket and commissioned by Playspan, U.S. gamers have shifted from using credits earned from advertising offers to "real world" payments for digital goods using debit, credit and prepaid cards. The data comes from a survey compiled in July 2011 from over 1000 gamers drawn from a VGMarket database.

According to the study, nearly one-third (31 percent) of the gaming population has used real world money to purchase virtual content. Of those who use real world money, 57 percent said they make purchases of virtual items using real world money at least once every month. Console games account for the majority (51 percent) of virtual purchases using real world money, with social networking games (30 percent) and Massively Multiplayer Online Games (MMOs) coming in at second and third, respectively.

The survey found that 72 percent of respondents indicated that they expect to spend the same or more money on games in 2011 as they did in 2010. Around 67 percent of those who intended to spend more said they were playing more online games than last year, with 42 percent saying they have more money to spend. About 32 percent claimed ease of purchase as the main reason, while greater in-game rewards (30 percent) was the fourth most popular reason.

Around 48 percent of the gaming population said they have purchased in-game currency over the last 12 months, with maps and levels coming in second with 47 percent, and armor and equipment third at 29 percent.

Females were almost three times more likely than males to use Facebook credits to purchase virtual items or content and outspend males in virtual goods purchases in MMOs with an average spend of $111 vs. $74 (when purchasing directly from the game maker) and $86 vs. $77 (when purchasing from a third party source). With casual games, the differences were even greater, with women spending 40 percent more than men from 1st party publishers and more than three times as much from third-party publishers.

Based on Geographical location, consumers on the west coast ($36) spend approximately 60 percent more on weapons than the average east coast gamer ($22), with nearly identical results for armor and equipment ($36 vs. $21).

Cross-tabulations of the survey revealed significant purchasing differences between self-defined sports enthusiasts and readers. Sports types spent an average of $106 from first party and $132 on third party sites compared to readers, who averaged $65 and $49 respectively. Readers had a much higher spend on PC Games with Online Play, averaging $79 a year from first party sites and $69 from third party sites, whereas those who play sports average $60 and $46 in the genre.

Finally, the survey found that men prefer email, while women prefer Facebook. Men and women show pronounced differences in the type of communication they prefer for the promotion of a virtual currency item. Men (49 percent) are much more receptive than women (38 percent) to email communications, while women (31 percent) much prefer promotions on Facebook to men (18 percent).

To obtain the full survey, check out Playspan.com.


 
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MechaTama31CMiner: Another issue is that every camera/webcam combination is going to be pretty different, in terms of the software/hardware exploits available. A homogenous hardware/software combo like a console, in millions of homes, will be a much juicier target.06/18/2013 - 6:31pm
SleakerVox pay what you want link is busted.06/18/2013 - 6:27pm
ZippyDSMleeMics have to breath put tape over it.06/18/2013 - 6:25pm
NyuRenaYou nailed it James! Yikes..06/18/2013 - 1:56pm
james_fudgeWith MS willing to share with the government, an always listening device should give everyone pause.06/18/2013 - 1:37pm
james_fudgeyou can't turn off the Microphone on the Kinect and it has to be plugged in. It's not rocket science.06/18/2013 - 1:35pm
E. Zachary KnightThe Humble Bundle Guys just don't like me having money in my pocket do they? https://www.humblebundle.com/06/18/2013 - 1:12pm
E. Zachary KnightCMiner, I know that my Android camera is off unless I am using an application that turns it on. Same with the microphone.06/18/2013 - 12:38pm
CMinerCan you turn off the camera on an iPhone? Like, -really- turn it off, not just change a setting that -tells- you the camera is off?06/18/2013 - 12:13pm
james_fudgewhen they make it a requirement, yes they are06/18/2013 - 12:10pm
CMinerI just don't think Microsoft bears any more (or less) responsibility for privacy with its Kinect camera than do the makers of laptops or smartphones with integrated cameras.06/18/2013 - 12:00pm
ImautobotThe ability to operate the console without the camera is key. It's a peripheral, not directly integrated into the console, and yet it behaves as if it is. Thankfully I don't have kids, and won't have an Xbone either.06/18/2013 - 11:49am
CMinerOh, I agree that the decision to make the kinect mandatory/always listening is terrible.06/18/2013 - 11:48am
E. Zachary KnightCMiner, and the easier the provider makes to do such things, the better. The fact that the XBone will not even funtion without it plugged in and turned on in some fashion makes a world of difference from a PC Webcam.06/18/2013 - 11:38am
CMinerIt takes steps on the user's part to ensure 100% privacy (unplugging, uninstalling, putting tape over it, not putting it in the kid's rooms, etc)06/18/2013 - 11:29am
CMinerMy point is that no webcam producing company can guarantee that no one will ever ever ever be able to access video from that webcam without your knowledge and permission06/18/2013 - 11:28am
E. Zachary KnightOf course at that point, you are still opening up yourself to Windows zero day vulnerabilities and back doors that they are happy to share with the government before Windows users.06/18/2013 - 11:26am
E. Zachary KnightCminer, I don't because I wipe the OS and reinstall something more secure, Linux. Even still, just wiping the OS and reinstalling Windows fresh removes all the bloatware PC companies install.06/18/2013 - 11:26am
E. Zachary KnightI agree that the Kinect requirement of the XBone has my civil liberty senses tingling. Just another nail in the coffin for me.06/18/2013 - 11:25am
E. Zachary KnightHonestly, I wouldn't put anything with an integrated camera in my kids' rooms. You are just asking for trouble. Of course, I am not a fan of having tvs/videogames/computers in kids rooms in general.06/18/2013 - 11:24am
 

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