E-Commerce

Chapter 10 E-Commerce: Digital Markets, Digital Goods

LEARNING OBJECTIVES

NEXON GAMES: E-COMMERCE GOES SOCIAL

If you like to play online games, you may already be familiar with MapleStory. It an online role-playing game in which players assume the identities of warriors, magicians, and thieves to collectively fight monsters. You can play the game for free, but if you want your avatar to have a new outfit, wacky hairstyle, or funny pet, you’ll need to pay for these extras. And if you want your MapleStory characters to marry each other in an elaborate Las Vegas ceremony attended by other in-game buddies, it will cost $20 to $29.

MapleStory is a recent creation of Nexon Holdings Inc., the world leader in massively multiplayer online role playing games. Nexon is headquartered in South Korea, with branch offices in China, Japan, and the United States. Nexon pioneered in the “item” (microtransactions) business model, where users can access the full game for free but later opt to pay for game enhancements (items). Nexon charges players anywhere from 30 cents to $30 each for virtual “items” to enhance their game experiences. MapleStory has 85 million users globally, with 5.9 million registered in the United States. In 2007, players worldwide purchased more than 1.3 million articles of clothing and over 1 million hair makeovers for their MapleStory characters.

One source of Nexon’s popularity is the ability to socialize with other users. According to Min Kim, vice president of marketing at Nexon’s U.S. division, “we sell social experiences, not packaged product.” During much of the last decade, most games were played alone. As the Internet and PCs developed more capabilities for rich-media experiences, solitary gaming has given way to social gaming. Whether it’s integrated instant messaging, voice-over IP, or text messaging, there are now multiple mechanisms for players to communicate with their friends. Video games now attract a whole new type of consumer—people who want...