Which Makes More Money? App or In-Game Purchases

Discussion in 'Mobile App and Game Marketing' started by Marc, Jan 9, 2013.

  1. Marc Forum Administrator

    Do you think application developers make more money from app purchases or in-game purchases?
    Please back up your answer with a reason. Thanks!
  2. dilawer Forum Moderator

    game purchases make more money because people tend to spend money on buying the game outright than spending it on useless in-game content.
  3. ramtastic05 Let Go My AnDroid

    I would have to agree with dilawer.

    I see in-game purchases as a big opportunity to make more money, but the game itself would have to be really fun and addicting so people actually pay for things.

    Its the same way for big games like Diablo 3 and WOW, where the game might be great, which you have to pay for, but some people may not be willing to spend money on items in the game.
    I never bought anything in Diablo 3, not for real money at least.
  4. Johnson Yip I Got The Good Stuff

    I read free apps like CSR Racing, Temple Run, Draw Something, Zynga games and other free apps makes a lot of money from in-game purchases.

    I think free apps would make more people try out the app, so there would be more dedicated fans who are willing to spend a few dollars on virtual items and levels. Plus, when they spent all their virtual money, they can buy more virtual cash with real money.

    There are people who rarely buy paid game apps because there are so many free games alternatives, but may spend a few dollars or less for in-game levels and items after they enjoyed the game.
  5. Avent Forum Moderator

    In game purchases in my opinion. People tend to quickly buy in game without thinking and that is one of the main reasons I do not really play games on my phone as I do not want to waste my money on stuff I did not really want.
  6. Johnson Yip I Got The Good Stuff

    I agree those In-game purchases are pretty tempting especially if you need to pay a dollar for more content on a free game which you spent many hours on, and are addicted to.

    In-game purchases is sort of like gambling, you buy them thinking they would make your game easier or more fun to play, but not knowing until you buy and used it, and if the in-game purchase improve your enjoyment, you buy more.
  7. Jessi BBM Crazy Member

    I've gotta go with the 'in-game purchases' people here.

    Sure, people will buy games outright and then not really want to spend any money on them, so they're not going to purchase as many items in-game for those.

    The people who download free games, though, and then get hooked? They're going to be the ones who end up wanting to spend a tiny amount of money on in-game upgrades or currency, etc, because after all, the game itself was free, so why not? And there are enough people in that boat that it really adds up.
  8. Sheepishwolf Highly Addictive User

    I also agree with the people who said "in game purchases". I'm going off personal experience here, because I know that all too often I find myself buying useless power-ups and whatnot from a game that I had downloaded for free. When you get a dedicated member-base to a game, you'll make more money from in-game purchases because they'll be very into it, and want to beat their friends. I've also noticed that games that you must pay to download usually have less that you need to buy in in-game purchases. Perhaps because they don't want to test their players budgets?
  9. sagarsaw Let Go My AnDroid

    Definitely the Freemium models works better than the paid app model these days.Because many users download a free app and then go on upgrading the game features by purchasing items from the games.Temple Run franchise is a living example of popular Freemium game with in app purchase model.
  10. Johnson Yip I Got The Good Stuff

    I read a kid spent thousands of their parents money on in-app purchases for virtual items from a free app. I think a lot of people accidentally press on the "buy now" buttons, and buy stuff they did not want, but are too lazy to try to get their $1-5 back by phoniing their credit card company, or contacting the app company to issue a refund since asking for a refund for a $1 purchase seems kind non-supportive if they are fans of the game.
  11. sagarsaw Let Go My AnDroid

    Well quite recently in one case a british boy spent $2500 in 15 minutes for in app purchase of a game! Thankfully Apple offered a full refund for the transaction as the child and the parents were unaware of the fact that they were being charged.
    In a similar case Apple will now be offering a refund to over 23 million consumers who have accidently bought any upgrades frm the app!
  12. Johnson Yip I Got The Good Stuff

    I wonder if Apple refund policy could be abused by cheap people who just want to try out a paid in-app item, and latter return it to get a full refund like how people return Big screen TV after using it to watch the NFL Superbowl, and say they don't like the TV style...
  13. Nuke Crazy Drama Queen

    If games on mobile were expensive (i.e. $19.99) like desktop games...

    The sale would probably win.

    But they're mostly under $5.

    Therefore, microtransactions win.
  14. sagarsaw Let Go My AnDroid

    Well apple will be sending over 23 million users notices to check if they were affected by this issue and yes there could be many users who would eventually lie their way out,but that's what you call a settlement.
  15. Corvus Highly Addictive User

    Probably in-games because some people can't resist to buy stuff while they are playing. Some companies use this and get a lot of money.
    It really sucks when you are playing a game and can't do something because you have to pay. It's a small amount of money so you buy it.. but if 50% of the people buy each item in the end it will be a lot of money.
  16. Johnson Yip I Got The Good Stuff

    Sometimes you do not have to pay for a paid app, or in-game items if you download other free apps, sign up for trials like Netflix, or fill out surveys on a website because the other free app maker, Netflix and paid survey companies pay for your purchase like how you can get free paid software via Trialpay by signing up for trials, or buying a domain name or hosting from another company.

    There are also companies like Swagbucks which giveaway free giftcards for iTunes and Amazon App store for watching videos with in-video ads, or use their search engine which is ad supported.
  17. sagarsaw Let Go My AnDroid

    Well agreed,there are other promotional ways in the game which allows users to get the extra credits to fill up a survey or like a page on facebook or follow on twitter,but that is totally user dependant,because an impatient user wouldn't want to waste time in filling up a long survey and chooses the payment option instead
  18. agarwal99 New Kid on the Block

    Definitely in-game purchases, and if the game is really addictive and you have some spare cash, you wouldn't have second thoughts about buying the power up.
  19. lowrider.STi Let Go My AnDroid

    In game purchases. I saw today at the news something about a kid who spent around 2000 pounds in order to buy some stuff for a game his father downloaded for him to play it on his iPad.
  20. Nuke Crazy Drama Queen

    This is incredibly expensive.

    By the way, over three-fourths of revenue on mobile is made by microtransactions now. What's the rate of commission?