A recent study by Flurry indicates that on an average iOS and Android Freemium Games generate $14 revenue using their Freemium model.
The rise of the Freemium mobile games has given some tough competition to Nindento DS and Sony PSP. an avid Freemium game player becomes so engaged in the game, that the usual $0.99 iPhone app threashold no longer bars him from a $9.99 purchase or in some cases even a $50 purchase (which is how much many of the game CDs for the PSP and DS sell for).
The Freemium model which has earlier been used by many big Web companies, as highlighted in my earlier post, is here to stay and rule the mobile gaming industry. It should come as no surpise that game drive 75% of revenue generated among the top 100 grossing iOS apps, of wihch 65% were generated from freemium games. Again, the crux of this model remains udnerstanding the customer segment and their needs to correctly decide the offerings in in-app purchase and price them right to induce purchase.
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