Xsolla
IndustryFinancial service, Video Games
Founded2005 (2005)[1]
FounderAleksandr Agapitov
Headquarters
Sherman Oaks, Los Angeles, California
,
United States of America
Area served
Worldwide
Key people
Aleksandr Agapitov, Konstantin Golubitsky, Chris Hewish
ProductsPay Station, In-Store Store, Anti-Fraud, Launcher, Site Builder, Buy Button, Subscriptions, Login, Funding Club
ServicesPayment systems for game publishers, customer support and tax/VAT services
RevenueUS$ 100 million (2021)[2]
Number of employees
490[3]
Websitewww.xsolla.com

Xsolla is a global video game commerce company headquartered in Sherman Oaks, Los Angeles, California. It was founded in 2005 by Aleksandr Agapitov in Perm (Russia), and is incorporated with subsidiaries globally.[4][5]

Xsolla’s products include digital tools which help with in-game payments and enable alternative payment systems to be used for digital transactions.[6] According to research conducted by Goldman Sachs and Bank of America, Xsolla could be worth up to $3 billion. In 2020, the company's revenue was $67 million.[7]

Xsolla clients include Twitch, Smite, Fortnite, Phoenix Labs, Roblox, Warner Bros. Games, Nexters, WEMADE, Gaijin, NetEase Games.[8][9][10]

History

Beginnings

Founded in 2005[1] by Alexander Agapitov, Xsolla (then 2Pay) provides payment services via local payment methods (cash kiosks, prepaid cards, money orders and e-wallets). The company was initially targeted at Russian game developers and publishers. Having added PayPal and SMS payment options, 2Pay entered the CIS (Commonwealth of Independent States) market and started its global expansion.[1] Several years after the founding, Xsolla and its core leadership team moved to the United States and officially reincorporated as a US company California Corporation. This allowed the company to greatly expand its operations globally.

Rebranding

In 2010, 2Pay headquarters moved to Sherman Oaks, CA. The company was renamed to Xsolla and transformed into an American company to expand its global operations.[11][12] The company expanded its business portfolio by adding numerous payment systems.

Expansion and partnerships

  • January 26, 2012: Xsolla integrated ZipZap’s CashPay™ payment systems to allow for bankless, cash-based transactions for online game purchases.[13]
  • August 10, 2012: Xsolla’s partnership with Openbucks enabled the use of unused gift cards from retail brands (such as Subway, Burger King, Circle K, and CVS) for game customers in the United States and Canada.[14]
  • September 14, 2013: Xsolla announced the addition of the Greenlight service to the company's product roster. Greenlight allowed for game customers to suggest new payment options currently unavailable in certain games.[15]
  • April 29, 2014: Xsolla announced the opening of a new office within São Paolo, Brazil. Xsolla began offering local payment methods in Brazil which included local bank transfers, cash payment systems, and prepaid cards.[16]
  • March 17, 2014: Xsolla announced they were integrating their services within EVE Online to service customers in Russia, the CIS, Latin America, and Southeast Asia.[17]
  • August 1, 2014: Xsolla announced that following a partnership with Twitch.tv, the company would be processing all of the streaming services’ alternative payment methods including the use of e-wallets, cash vouchers, cryptocurrencies, and local payment systems.[18]
  • December 23, 2014: Xsolla partnered with PayGarden to expand its supported gift cards by over 100 major gift card brands.[19]
  • May 14, 2015: Xsolla announced a partnership with merchant acquirer Secure Trading Financial Services (STFS). The goal of the partnership was to achieve faster processing of credit card payments.[20]
  • May 21, 2015: Xsolla announced their collaboration with Unity in developing the Xsolla Unity SDK. The Xsolla Unity SDK would enable web-based and client-based games to integrate Xsolla’s payment methods in their games directly, rather than redirecting to a web portal or separate storefront.[21]
  • April 26, 2021: Xsolla acquired advanced the data analysis company Slemma and planned to integrate all of Slemma’s tools into Xsolla’s various platforms.[22][23]
  • August 11, 2022: Xsolla and software/services provider Adikteev announced their partnership to help mobile developers sell and monetize their games more efficiently.[24]
  • February 15, 2022, Xsolla partners with venture capital company Nazca to form video game venture Joystick Ventures.[25]
  • October 19, 2022: Xsolla partnered with Alipay+ and integrated their suite of services to allow Asian-based gamers more accessibility when purchasing digital goods in-game.[26]
  • In September 2023, it was announced Xsolla had acquired the multi-player gaming platform, AcceleratXR.[27]

Metaverse Project

On February 21, 2022, Aleksandr Agapitov announced the company’s launch of X.LA, a “community-driven organization designed to democratize how creators benefit from their work by utilizing novel technologies and concepts of Web3.” X.LA works by leveraging blockchain and Web3 technologies to enable revenue-sharing deals more accessible to creators globally through a decentralized protocol.[8]

Products

Xsolla’s current monetization product offerings consist of 10 gaming-specific ecommerce tools: Xsolla Pay Station, In-Game Store, Player Inventory, Subscriptions, Buy Button, Site Builder, Web Shop, NFT Checkout, Multi-Platform Publishing, Digital Distribution Hub, and Anti-fraud solution.[28]

Xsolla Pay Station allows Xsolla partners to monetize their product by providing an interface for users around the world to pay for in-game purchases in game stores. The tool supports more than 130 world currencies.[29]

The in-game store is a service for managing in-game purchases. The service functions as an in-game digital marketplace where players can purchase in-game and other digital items. Developers can access integrated marketing and price management tools.[30]

  • Xsolla Player Inventory allows developers to track and sync customer purchases, and grant and revoke in-game items and currency from a specific user's inventory.
  • Xsolla’s Subscriptions allow developers to create and adjust subscription plans from a comprehensive dashboard.
  • Xsolla Buy Button is an ecommerce solution for game developers that supports various monetization options. It allows the purchase of game keys, virtual items, and virtual currency with either real or other virtual currencies.
  • Xsolla Site Builder allows developers to create sites in order to sell and promote pay-to-play games, free-to-play games, and in-game items.[31]
  • Web Shop is a tool that allows mobile game developers to sell virtual items, virtual currencies and bundles using the Xsolla payment UI and store interface on their own website.[32][33]
  • Anti-fraud improves fraud detection with specific in-game parameters, separates fraudulent activity from legitimate purchases, and detects serial fraudsters across games.[34]
  • Xsolla currently offers three services focused on community growth and publishing support for video games: Xolla Launcher, Xsolla Login, And Xsolla’s Digital Distribution Hub.[35]
  • Xsolla Funding Club is a partner search service for video game developers, investors and publishers.[36]
  • Xsolla Game Investment Platform is designed for individual investors seeking co-investment strategies. The platform contains a portfolio of games ready to accept investments.[37]

Awards

On April 5, 2022, Xsolla was announced as the winner of Mobile Games Awards “Best Service Provider” award.[38] On October 4, 2022, Xsolla received the Gold tier Merit Award for gaming.[39]

Management

Aleksandr Agapitov is Xsolla’s Founder and former CEO. On February 2, 2022, Agapitov stepped down and appointed Konstantin Golubitsky as CEO. Chris Hewish is the current president of Xsolla.[40][8][7][41]

Controversy

In 2020, Bitbox Ltd. announced that it was shutting down its game Life Is Feudal: MMO, alleging that Xsolla was not paying them.[42] This has resulted in a lawsuit between the two companies.[43]

In 2021, Xsolla fired 150 employees based on their performance metric which was measured using big data and AI analytics.[44][45]

References

  1. 1 2 3 "Энциклопедия: 2PAY | MoneyNews". Moneynews.ru. Retrieved 2013-08-31.
  2. ↑ "Иксоллано хлебавши" (in Russian). Kommersant. 2022-06-08. Retrieved 2022-12-02.
  3. ↑ "Xsolla Revenue and Competitors". Growjo. Retrieved 2022-12-02.
  4. ↑ Carpenter, Scott (18 April 2022). "Video Game Junkie Quietly Builds $3 Billion Payments Powerhouse". Bloomberg News. Retrieved 19 April 2022.
  5. ↑ "Дорогие игрушки: Как агрегатор платежей Xsolla пробивается в высшую лигу Кремниевой долины" (in Russian). The Village. 2013-06-27. Retrieved 2022-12-02.
  6. ↑ "Xsolla's Pay Station update adds web shops, streamlined payments and a startup accelerator". GamesBeat. 2022-08-01. Retrieved 2022-12-02.
  7. 1 2 "The Russian from Perm who built a $3bln in-game payments company". The Bell. 2021-05-03. Retrieved 2022-12-02.
  8. 1 2 3 "Video Game Junkie Quietly Builds $3 Billion Payments Powerhouse". Bloomberg. 2022-04-18. Retrieved 2022-12-02.
  9. ↑ "InComm Partners With Xsolla To Enable Online Game Account Funding With Cash At GameStop". Nothing But Geek. 2018-11-08. Retrieved 2022-12-02.
  10. ↑ "Xsolla integrates Alipay support for game monetization across Asia". Pocket Gamer. 2022-10-25. Retrieved 2022-12-02.
  11. ↑ "Фирменный стиль "Иксоллы"" [Xsolla's corporate identity]. Artlebedev.ru. 2010-10-28. Retrieved 2013-08-30.
  12. ↑ "Farewell 2pay, Greetings to Xsolla". Cision PRWeb. 2010-10-05. Retrieved 2022-12-06.
  13. ↑ "Xsolla partners ZIpZap to target unbanked and teen market for virtual currency conversion". Finextra. 2012-01-31. Retrieved 2022-12-06.
  14. ↑ "Xsolla, Openbucks team up for new online video games payment option in US, Canada". The Paypers. 2012-08-13. Retrieved 2022-12-06.
  15. ↑ "Xsolla Reveals New "Greenlight" Service". The Paypers. 2013-09-14. Retrieved 2022-12-06.
  16. ↑ "Xsolla объявляет об открытии офиса в Бразилии" (in Russian). Re-port. 2014-04-29. Retrieved 2022-12-06.
  17. ↑ "Xsolla teams up with CCP Games to add new online payment methods". The Paypers. 2014-03-17. Retrieved 2022-12-06.
  18. ↑ "Xsolla and Twitch.tv Announce Extended Partnership methods". Cision PRWeb. 2014-08-01. Retrieved 2022-12-06.
  19. ↑ "PayGarden: Xsolla teams with PayGarden on gift card program". Owler. 2014-12-24. Retrieved 2022-12-06.
  20. ↑ "Xsolla and STFS partner in games market". Finextra. 2015-05-14. Retrieved 2022-12-06.
  21. ↑ "Xsolla Unity SDK: Complete Storefront Solution for Unity Developers". Game World Observer. 2015-05-21. Retrieved 2022-12-06.
  22. ↑ "Xsolla acquires Slemma". Gamesindustry.biz. 2021-04-22. Retrieved 2022-12-06.
  23. ↑ "Xsolla acquires advanced data analytics company Slemma". Game World Observer. 2021-04-23. Retrieved 2022-12-06.
  24. ↑ "Xsolla partners with Adikteev to accelerate game monetisation". Pocket Gamer. 2022-08-22. Retrieved 2022-12-06.
  25. ↑ Partis, Danielle (2022-02-15). "Joystick Ventures launches, aims to fuel indie developers". GamesIndustry.biz. Retrieved 2023-11-14.
  26. ↑ "Xsolla integrates Alipay support for game monetization across Asia". Pocket Gamer. 2022-10-25. Retrieved 2022-12-06.
  27. ↑ Jeffrey, Rousseau (2023-09-28). "Xsolla snaps up AcceleratXR". GamesIndustry.biz. Retrieved 2023-11-14.
  28. ↑ "Xsolla opens one-stop shop for game developers to monetize and grow globally". GamesBeat. 2018-06-06. Retrieved 2022-12-06.
  29. ↑ "Xsolla opens one-stop shop for game developers to monetize and grow globally". Yahoo Finance. 2022-08-02. Retrieved 2022-12-06.
  30. ↑ "Xsolla launches commerce to take mobile games beyond the app stores". GamesBeat. 2021-01-26. Retrieved 2022-12-06.
  31. ↑ "Xsolla opens one-stop shop for game developers to monetize and grow globally". GamesBeat. 2018-06-06. Retrieved 2022-12-06.
  32. ↑ "Xsolla Expands Web Shop Solutions to Help Mobile Game Developers to Generate More Sales Online". The Global and Mail. 2010-10-22. Retrieved 2022-12-06.
  33. ↑ "Xsolla Expands Web Shop Solutions to Help Mobile Game Developers to Generate More Sales Online". Business Wire. 2010-10-18. Retrieved 2022-12-06.
  34. ↑ "Xsolla unifies skill-based gaming and esports platform, monetisation, and subscription programmes". The Paypers. 2021-04-21. Retrieved 2022-12-06.
  35. ↑ "Xsolla Launcher: решение для разработчиков и издателей игр" (in Russian). Nord Clan. Retrieved 2022-12-21.
  36. ↑ "Xsolla acts as funding middleman for developers and investors". Premortem Games. 2022-06-22. Retrieved 2022-12-26.
  37. ↑ "Xsolla Announces Trailer Investment Program With Trailer House Partners". Yahoo Finance. 2022-10-20. Retrieved 2022-12-26.
  38. ↑ "The winners of 2022". Mobile Games Awards. Retrieved 2022-12-02.
  39. ↑ "Merit Awards Announces Winners of 2022 Technology Awards". Business Wire. 2022-10-04. Retrieved 2022-12-02.
  40. ↑ "Xsolla назначила на должность CEO Константина Голубицкого" (in Russian). IT-World. 2022-02-03. Retrieved 2022-12-02.
  41. ↑ "Super apps loom large as payment services giant Xsolla preps its 2023 Israel debut". The Jerusalem Post. 2022-11-22. Retrieved 2022-12-02.
  42. ↑ "Bitbox Closing Life Is Feudal: MMO Due To Publisher Xsolla Not Paying Them". 23 December 2020. Retrieved 27 October 2022.
  43. ↑ "Xsolla USA, Inc. v. Bitbox Ltd".
  44. ↑ Семенов, Александр (2021-08-04). "Xsolla уволила около 150 сотрудников. Компания отталкивалась от анализа их активности в рабочих приложениях". app2top.ru (in Russian). Retrieved 2023-11-14.
  45. ↑ "Xsolla fires 150 employees using big data and AI analysis, CEO's letter causes controversy". 4 August 2021.
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