Xsolla $8M Campaign for Gamers Historic But Controversial

Los Angeles-based Xsolla, a multi-purpose platform that services the gaming community, plans to spend a whopping 8 million on a new marketing campaign.  SCROLL DOWN

It will launch its new product suite next week at the Electronic Entertainment Expo (E3) in Los Angeles.  The anticipated launch claims it will “enable a seamless ecosystem where any size industry player can access the tools and services necessary for success”.

The company boasts an ecommerce module that can process more than 700 payment systems, including cryptocurrencies.

"As a partner to the developers, we’re really trying to help them create an experience where the gamer never wants to leave," said Nathalie Lubensky, chief marketing officer at Xsolla. "Anyone can build a game at this point, but no one can build a successful business."

Some 2.3 billion people across the world will spend $137.9 billion on games in 2018, according to Newzoo.

The Xsolla strategy comes with a few hitches however.

From CampaignLive:

Late last year, gamers boycotted Star Wars Battlefront II after they grew frustrated with overpriced add-ons. Headlines centered around disdain of loot boxes. Players were (and still are) spending real money for virtual lucky-dips, which offer things like weapon upgrades and character enhancements.  

The pay-to-win structure has been condemned by many who brand it as a form of gambling.

In April, government officials in Belgium declared loot boxes illegal. The Belgium Gaming Commission claimed the feature is "in violation of gambling legislation." All developers whose games contain loot boxes must now embark on the arduous task of removing them if they’re sold in the country. Failure to do so could result in a fine of €800,000 ($923,000) and up to five years in prison for publishers.

Belgium's Minister of Justice, Koen Geens, said the rule was put in place to protect children, labeling the loot boxes "dangerous for mental health."

eSports has been exploding in the world of online gambling with many wagering sites now offering odds on most matchups and championship outrights.

- Aaron Goldstein, Gambling911.com