trending / - - - - - - - - -

trending / playstation 4 - ni no kuni - halo - wii u - bungie interview - ces top picks - radeon hd 7850 - woods pga tour

Microtransactions Contributing Less to Funding Free-to-Play Games, Report Finds

/ Dec 6th, 2012 No Comments

Jetpack Joyride is a freemium game.

Jetpack Joyride is a freemium game.

Microtransactions contribute significantly less revenue to free-to-play mobile games than costlier in-app purchases, according to a new report from W3i.

Purchases between $0.99 and $1.99 have long been considered the main way to fund free-to-play games but W3i found that macro-transactions ranging from $9.99 to $19.99 contribute much more to the total revenue of freemium games.

W3i took a sample of games and surveyed the in-app purchase price points and how they contribute to the total revenue. The report found that free-to-play mobile games receive 47 percent of their total revenue from purchases costing between $9.99 and $19.99, on average. Microtransactions of $0.99 to $1.99 contribute an average of only six percent to overall revenue.

Free-to-play games with paid features have become the norm for mobile gaming with premium and subscription based business models declining steadily. The freemium model is built on the idea of gamers making microtransactions, which means players spend only a dollar or two to unlock features in the game. Instead, that has taken off into larger macro-transactions.

The report was meant to showcase recent trends in mobile app monetization. W3i is the leading in-app offer exchange provider for driving user acquisition and monetization. The W3iNSIDER Report analyzes data from hundreds of game developers and 66 million monthly active users across iOS and Android.

The report also contained international in-app purchasing trends. The biggest spender in the world is the United Arab Emirates (UAE), with 55 percent of revenue coming from purchases of $19.99 and 22 percent from purchases of $9.99. In total, macrotransactions account for 77 percent of in-app purchases in the UAE. The UK has the highest number of big spenders with eight percent of revenue coming from in-app purchases of $49.99. China and Canada each sell $0.99 purchases in the largest volume.

“Although the U.S. learned about freemium gaming from Asia, it’s apparent that Americans are taking their own approach to it,” Robert Weber, co-founder of W3i, said. “Where mobile games in Asia still depend on microstransactions, U.S. gamers play more like whales–spending larger amounts of money in mobile games.”

W3i is a leader in monetization and user acquisition solutions for mobile and web apps. The company offers ways to help developers drive users to their mobile app and make a profit from it using research and ethical business practices.

Ryan Bloom

Ryan Bloom

Associate Editor at Gaming Illustrated
Ryan Bloom is a writer and avid gamer from Orange County. He received a B.A. in Communications with a minor in American Studies from California State University, Fullerton in 2010. Follow him on Twitter @BloomsTweets.
Ryan Bloom

tags: , , , , ,

Related Posts

ps4 outsells xbox one in march

PS4, Titanfall Top March Sales Charts

Apr 18th, 2014No Comments

PS4

PS4 1.70 Firmware Update to Introduce SHAREfactory

Apr 18th, 2014No Comments

Untitled

Xbox One Users to Be Refreshed by Soda Drinker Pro

Apr 17th, 2014No Comments

The Last of Us

The Last of Us Final Season Pass DLC Detailed

Apr 17th, 2014No Comments

Top Articles

Life Goes On (PC) Review Apr 17th, 2014 at 8:00

Moebius: Empire Rising (PC) Review Apr 15th, 2014 at 9:00

Putty Squad (PS4) Review Apr 14th, 2014 at 10:00

RBI Baseball 14 (Xbox 360) Review Apr 11th, 2014 at 10:00

Infamous: Second Son (PS4) Review Apr 10th, 2014 at 9:00

Rayman Legends (PS4) Review Apr 8th, 2014 at 9:00

Goat Simulator (PC) Review Apr 7th, 2014 at 9:00

Inazuma Eleven (3DS) Review Apr 4th, 2014 at 9:00

Bravely Default (3DS) Review Apr 3rd, 2014 at 9:00

OFF (PC) Review Apr 2nd, 2014 at 9:00

Crawl (PC) Preview Apr 14th, 2014 at 9:00

Full Bore (PC) Preview: Going Hog Wild Mar 27th, 2014 at 10:00

Divinity: Original Sin (PC) Preview Mar 19th, 2014 at 8:00

Mercenary Kings Blasts Onto PS4 Next Month Mar 14th, 2014 at 7:00

Vertiginous Golf (PC) Early Access Preview Mar 13th, 2014 at 8:00

WildStar (PC) Beta Impressions Mar 12th, 2014 at 9:00

Yoshi’s New Island Hands-On Preview Mar 10th, 2014 at 8:00

Steam OS – My Beta Experience Mar 5th, 2014 at 8:00

A History of South Park Games Mar 3rd, 2014 at 6:00

WildStar (PC) Preview Feb 25th, 2014 at 9:00