3pointD.com

Min Kim of Nexon gave a presentation at the Virtual Goods Summit and said the company would probably announce the release of its KartRider in the US soon, which has been in closed beta. Kim also said Maple Story has been “kicking ass” in the US, with 3.5 million registered users. The company is also introducing prepaid cards at Target that can be used to buy virtual items, which it expects will push up sales as well. It also just released Audition, which already has 100,000 registered users, more than half of them female.

Nexon is South Korea’s largest privately owned online game company. Maple Story has more than 18 million subscribers in Korea. The company had $240 million in revenue in 2005, 85 percent of that from item sales. Their games are free to play, no package sales, the revenue is all from virtual item sales.

We’re selling a service, we’re not selling a product. Virtual items are segregated into decorative items, functional items, and items that are both decorative and functional. Functional items can affect gameplay, things like stat-checking and pets. Why are these things compelling? They get at showmanship and self-expression, they enhance the gaming experience, and they’re meaningful. For someone playing Maple Story more than 40 hours a month, it’s very meaningful for them to change their haircut or get a different pair of sunglasses.

KartRider in Korea has 50 million subscribers, 25 percent of the population of Korea has played it. It’s a 3D casual racing game. Though it’s primarily a business model of selling virtual items, it may focus more on advertising in the US, with ad rates being what they are here. Web-based and in-game advertising have worked well for them as well.

KartRider has sold 20 million virtual cards, for $10 a piece.