Power-Up! For In-Game Purchases

POSTED BY Global Administrator
It’s been quite a couple of years for mobile games since we last published a report on the subject: the App Store has soared like an angry bird, and other storefronts, notably Android Market, are coasting along in its slipstream. The key factor that has lead us to forecast in our latest Mobile Games report that total end-user revenues will surpass $11 billion annually by 2015, nearly double what they were in 2009 ($6bn), is the effectiveness of Apple’s in-app billing. Lite games – or demo games, for those still stuck in the PC gaming age – have, and are still working well; giving the user a taste on the house, and them asking them to fork out for extra levels or options etc. One downside to this is that they have to go back to the App Store first; a minor issue though. But once they’ve bought the game, that’s it; no more revenue. However, give the user the full game free (which might sound crazy at first, but hold on), and you give them a chance to get really hooked; once this happens, with a number of different purchase options (objects, credits, ad-removal, extra-levels), and Apple’s in-app billing, the one-off purchaser morphs into a regular subscriber. Consequently, as we discuss in our Mobile Games report, we believe in-game billing is going to overtake pay-per-download as the primary means of monetising mobile games by 2013, as other app stores adopt this model. Our Mobile Games video whitepaper is now available to watch here...