The Games category is by far the most popular corner of the iOS App Store, and a new report has surfaced that says most people spend their money on virtual, in-app goods and upgrades in their favorite games.
In terms of Android and iOS users, the ‘freemium’ model seems to be the reigning king of mobile gaming. Users are starting to prefer free games that offer in-app upgrades and purchases to unlock new content.
Flurry published the results of data collected from 57 million purchases on both and Android and iOS platforms, and the title of the report reads, “Freemium Mobile Gamers Spend More Money on Items They Don’t Keep.”
Instead of ponying up the cash for a full-featured, $2.99 game in the App Store, users prefer to play a game that adopts the freemium mentality. According to Flurry, 65% of all game revenue comes from in-app purchases in the top 100 freemium games. Right now, the top 5 grossing games in the App Store are based on the freemium model. Over 85% of the games in the top 25 grossing list are freemium titles.
Although Apple takes a 30% cut from in-app purchases, developers are still making good cash on the freemium model. A free title, like We Rule, that sells virtually ‘consumable’ goods tends to see much better returns than a game that sells for a one-time purchase price.
The social aspect of games like Farmville are a huge reason that users get addicted to similar freemium titles, and the incredibly simple process that Apple has established for in-app purchases makes the freemium model an attractive money-making strategy for app developers.
Alex Heath is a journalist who works for Tech Insider. He’s the former co-host of The CultCast. He has been quoted by the likes of the BBC, KRON 4 News, and books like “ICONIC: A Photographic Tribute to Apple Innovation.” He lives in Lexington, Kentucky. If you want to pitch a story, share a tip, or just get in touch, additional contact information is available on his personal site. Follow him on Twitter.
11 responses to “In Terms of iOS Gaming, the Freemium Model Makes the Most Cash [Report]”
I hate “freemium” games. It’s just bugging me to death to have a game that I can’t fully use unless I shell out money on a regular basis. Not to mention that most of these games suck anyway, since they have to be tailored round the in app purchases which means that theres little room for creativity. It’s usually a game where you need some sort of currency to buy something or mae something happen…yawn…I much rather pay for a game up front and then fully enjoy a real game with all its features.Â
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All your games are belong to us.
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I just p a i d $21.87 for an i P a d 2-64GB and my boyfriend loves his Panasonîc Lumîx GF 1 Camera that we got for $38.76 there arriving tomorrow by UPS.I will never pay such expensive retail prices in stores again. Especially when I also sold a 40 inch LED TV to my boss for $657 which only cost me $62.81 to buy.
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NOW 100% WORKING
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And it’s the second most annoying (most annoying is ad-supported). Â I like to know what the cost is up-front.
For myself, it generally depends whether or not the game is playable without the purchases. I do not mind so much paying for extra levels and suchlike but if the in app purchases in effect become a hidden cost to play it, I am likely to go elsewhere. Also, one off payments for content are generally preferable to the need for regular payments for in game money for example. If the game receives regular updates and new content, this may be more acceptable, as in desktop MMO games but I have yet to find one of these for iOS that grabs me like WoW has been known to.