Alexander Agapitov: “Xsolla launches services that will help game developers earn more”

I’m calling Alexander Agapitov, CEO of Xsolla, and Andrey Podshibyakin, creative director of the company, just after the official announcement. Petersburg is already asleep, but at the Xsolla office in Los Angeles it’s the very beginning of the day.

The guys are being torn apart. I hear them calling and texting on Skype and Facebook every now and then. While Alexander answers questions, Andrey immediately answers someone.

Alexander Semenov, Senior Editor App2Top.ru A couple of hours ago, you announced a project that could change the situation on the PC games market. Please tell me about him.

Alexander AgapitovAgapitov:

This is not a project, this is a rethinking, a reorientation of Xsolla from a fintech company to a company focused on the gaming market.

We have announced the addition of services that will help a game developer earn more money. With this announcement, we are expanding a number of our products.

At the same time, of course, we are not abandoning our former business. Only payments from the main service become one of many solutions.

It’s great, only when you say to the developer: “Guys, I’ll help you make money” — but it’s a little, you must admit, blurry. Can you be a little more specific?

Agapitov:Sure. When we come to the developer, we say that we are an extension of your team. They say we have prepared an extension of your team.

Now, in addition to payments, we offer assistance in finding new users, we help to make a launcher (Xsolla Launcher), our own store (Xsolla Store), login (Xsolla Login), an affiliate program (Xsolla Partner Network) and much more.

Andrey PodshibyakinPodshibyakin:

These are by and large utilities that are needed in order to be successful.

Look, the success of the game has two components.

The first is art itself, graphics, the implementation of which is not such a big problem today, since engines, cool technologies, tools for their implementation have become very accessible.

The second component of success is the business component. Many companies need the same thing, so we can assume that there is a place in the market for the business engine for the game from Xsolla.

Many people are saying now that you are positioning yourself as an alternative to Steam and other platforms. How true is this?

Agapitov: One of our new services is really called Xsolla Store. But this does not mean the story of the discovery of new products.

Our idea is for each game to have its own Steam in addition to the one that is. Our store is a store for each specific game, where you can purchase subscriptions, game items, maybe merchandise or game currency.

Examples of game stores created within the Xsolla Store
Our clients are those developers who build close relationships with their users.

We help such teams build an ecosystem that is dedicated exclusively to their game.

Sounds great, but where will the traffic come from? If Steam and GOG help me find users, then what can Xsolla offer in contrast?

Agapitov: A reasonable question.

Firstly, no one takes GOG and Steam away from you. You’ve been selling as much as you’ve been selling.

Secondly, you are aware that Steam takes 30% from each sale of the game.

With us, the situation will be somewhat different. Our new solutions allow you to launch a website (Xsolla Site Builder) with a full set of tools for attracting an audience, which is correctly optimized from the point of view of SEO, allows you to sell the game directly from it, launch pre-order campaigns and stimulate the paying audience with special promotions.

The audience will not download the distribution kit from the site, but your own launcher, which solves the problem with game updates, drivers, through the launcher it will be possible to offer DLC and notify about important news. I have one Mail.Ru , Blizzard, and now any team will be able to afford a solution similar in functionality.

We will charge 5% for these services.

Xsolla Tool Pool
As for traffic, we have the Xsolla Partner Network, which is a tool that allows you to manage influencers and different traffic sources, such as affiliates with webmasters.

 With its help, if you are ready to work on revenue share, you will be able to choose what percentage you are ready to give to influencers and affiliates. It can be 25% if you don’t want to give more than Steam, but the figure may be, on the contrary, more, because many people want to be more aggressive at launch.

For example, before the critical mass is set, say, a million users, you set a high percentage. Then, when the level of organic matter seriously increases, you reduce the percentage.

Thus, game teams will be able to choose their own growth rates.

In addition, we made a login aggregator, which allowed us to solve all potential problems with GDRP, Roskomnadzor, and the Korean market in advance for customers, if you go to it.

Let’s stop at traffic. How does it work? For example, I released an indie trash with pixels, designed for an audience of Fire Emblem players. Then I have to save some amount for an advertising campaign, or will I be promoted in exchange for the sales that I will generate?

Agapitov: Xsolla Partner Network operates in two modes — as a marketplace and as a tool. In tulsa modes, you can simply set revenue share. We are actually more interested in this kind of cooperation with companies [including on the service’s website it is indicated that with its help developers can attract partners by offering a share in earnings, and payment will be made only if any action is performed, for example, buying a game from a specified source, – approx.editorial offices].

Coming to an end, is there a connection between the new ecosystem and the Xsolla investment fund?

Agapitov: There is no connection. We just want the games we invest in to use our services because they increase sales.

I see, thank you very much for the interview.