Explore the revolutionary impact of the Direct-to-Consumer model on the gaming industry through an exclusive interview with Sebastian Totté, Noda’s Head of Gaming. Learn how companies are reducing reliance on third-party platforms, increasing publisher revenue, and unlocking customization opportunities.
What is the future of the direct-to-consumer model in the gaming industry?
This year, expect many gaming companies without web stores to launch one. Those with significant in-app purchase revenue will likely establish their direct-to-consumer stores. The implementation of the Digital Markets Act is driving more publishers to develop their D2C channels.
It can be likened to traditional retail stores transitioning to e-commerce. For gaming companies, platforms are like physical stores, and web stores are their online storefronts.
How can gaming companies transition to the direct-to-consumer model using payment services?
To establish a direct consumer store, companies can collaborate with Payment Service Providers (PSPs) or Merchants of Record (MoRs). PSPs specialize in payment processing, while MoRs take on a broader role including tax management and user support. Choose based on your business’s capabilities.
What are the advantages of adopting the D2C model for gaming companies?
Switching to D2C can save companies significant amounts in platform fees, allowing them to fully control the customer experience and personalize it. The financial savings can then be reinvested into game development.
Any success stories of gaming companies embracing PSPs in their D2C approach?
Wargaming’s strategic use of PSPs has resulted in cost savings and a streamlined payment process for players, boosting conversions. Their efficient deposit management through C2B bank accounts has enhanced player experience.
What challenges might companies encounter when shifting to a D2C model?
Selecting the right PSP or MoR can be a challenge due to hidden costs and fee structures. Building a robust website and integrating payment services smoothly are also crucial for a successful transition.
How does open banking support D2C adoption in the gaming industry?
Open banking offers lower fees and enhanced security by establishing direct connections between players and banks, eliminating intermediaries. This results in a safer and more seamless payment experience.
Ensuring security and fraud prevention when transitioning to D2C
Utilizing Open Banking payment services enhances security and fraud prevention by establishing direct connections between players and banks, improving overall transaction security.
