Xyologic, a mobile app sales analytics company, finds that 40% of the game downloads from Apple’s App Store are “freemium” titles. Freemium meaning, free to download, but developers make money from embedded ads, or sell add-on content, such as extra levels, or more weapons. There was also 99.9 million free game downloads in April, with […]
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40% of App Store Game Downloads Are Freemium

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Xyologic, a mobile app sales analytics company, finds that 40% of the game downloads from Apple’s App Store are “freemium” titles. Freemium meaning, free to download, but developers make money from embedded ads, or sell add-on content, such as extra levels, or more weapons.

There was also 99.9 million free game downloads in April, with 80.8% of all app downloads being free apps.

This doesn’t surprise me. The non-geek public is tight with their money, and they think good software is easy to make, and they’re being overcharged for it anyway. That of course isn’t the case, software is hard to make. So, how do you get it in the hands of tight people, but also manage to put food on the table- freemium. Give the base of the product away, and if they’re willing to pay more, they customer will get more. That’s why of the 150 top games in the App Store, 94 of them had in-app purchases for extra content.

It appears that the “freemium” model is what the App Store is settling around. I just hope it doesn’t turn into a race to the bottom, and developers both big and small can continue to make a living from it.

Chart courtesy of GamesBeat.

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