Ngmoco’s “freemium” model pays off, acquires iPhone game company Freeverse

They might have cancelled the follow-up to their cute little rolling blob series, Rolando, because it couldn’t be turned into a “freemium” title, but iPhone game startup Ngmoco clearly isn’t doing bad itself: they’ve raised $25 million in capital fund and purchased Freeverse.

Who is Freeverse? They’re another popular iPhone gaming company, responsible for titles such as Moto Chaser and Skee-Ball.

The move should allow Ngmoco to take their successful “freemium model” — in which games are free for users to download or play, while the developers themselves make their money through in-game advertisements and in-app purchases — and roll-it out to their recently acquired Freeverse titles.

As a business model, it makes a lot of sense: with the average price of apps ever plummeting, Ngmoco’s freemium approach allows them to give most users what they want — a free, simple game to play — and squeeze revenue out of them anyway. I don’t necessarily think that leads to very sophisticated games in the long run… but most people don’t want sophistication, they want entertainment.

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