Why free-to-play app pricing is so effective, and what you can do about it

meaganhanes:

Many lessons can be found at the intersection of Games and Social. Makes sense, right – the two are so related!

Enjoy this exploration of economics, technology, and our simple yet honest desire to be happy :)

Originally posted on Gigaom:

It should come as no surprise that free-to-play gaming has become a huge financial success in mobile gaming. Free-to-play (FTP) in the iTunes App Store refers to any iOS game that allows gamers to download a game without paying up front. In fact, 82 of the top 100 grossing games on the iPhone are currently FTP. And of the 18 games that you do have to pay for, only 5 titles do not offer any sort of in-app purchases. These 13 games are what are sometimes referred to as pay-to-play (PTP) games.

That leaves only 5 games in the current list of top 100 grossing games relying on their initial sale price alone for revenue. How are these FTP games making it to the top of this list? It is the sale ofvirtual goods through in-app purchases that is driving revenue for the top iOS games.

Growing opportunity for…

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