Train2Game news: Free-to-play games generate 65% of App store revenue

 

Train2Game students with plans to develop mobile games may be interested in the following statistic; free-to-play games now bring in 65% of the revenue in the iTunes App store.

That’s according to a report by Flurry Games GM Jeferson Valadares that tracked over 90,000 apps and showed that at the start of the year free-to-play games brought in just 39% of revenue.

It could encourage Train2Game students to develop free-to-play titles of their own.

“When you make your game free and add in-app purchases, two powerful things can happen: first, more people will likely try your game since you’ve made the ante zero,” writes Valadares.

“And second, you will likely take more total money, since different players can now spend different amounts depending on their engagement and preferences. It’s not unheard of for individual players to spend into the tens of thousands in a game they like,” he continues

“Although this means that more than 90% of players will not spend a single penny, it also means that players who love your game spend much more than the $0.99 you were considering charging for the app.”

Valadares adds that free-to-play is “here to stay” This evidence for this is significant, with the Train2Game blog even reporting that EA believe it can be as profitable as triple-a

In an interview with the Train2Game blog last year, games industry consultant and Gamesbrief founder, told us that free-to-play generates more revenue.

“The guys who are making more money are allowing people – if they like the game – to keep upgrading. And instead of the maximum amount of that money you can make from customer being 99c you can make $5, in some cases $30.” Lovell told the Train2Game blog.

“There’s a game called Pocket Frogs which has in app purchases of values of 99 cent, $4.99 & £29.99. Only 8% of people by the $29.99, but in revenue terms, more than half their revenue comes from those bigger packs.  And most businesses stop at the 99c level, they would make a tenth of the revenue of Pocket Frogs.”

Last week, the Train2Game blog reported that Smurfs’ Village is ‘changing the market’ for mobile games.

So Train2Game, what are your thoughts on the growth of free-to-play? Is it here to stay?

Leave your comments here on the Train2Game blog, or on the Train2Game forum.

[Source: Industry Gamers via GI.biz]

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