Saturday, 1 September 2012

Making $400,000 per day from a free iPhone game

The trick is to release a free game that hooks players into buy game features to enhance their playing experience.

Trey Smith, iOS game developer, wrote “The fall of Angry Birds,” discussing why Angry Birds, for 99 cents, doesn't gross nearly as much money as many free games. The secret is IAP: In App Purchasing. Smith's successful pitch during a game? “You don't have enough coins for that, would you like to buy some?” Best example? CSR Racing announced they made $12,000,000 in one month.
Emeric Thoa of The Game Bakers gave details about costs and revenues from RPG SQUIDS on iOS in “MONEY AND THE APP STORE: A FEW FIGURES THAT MIGHT HELP AN INDIE DEVELOPER.” Squids cost $100,000 to develop, $30k to market, and grossed $75k the first month. Only 10 percent of revenue came from in app purchases, on purpose. Thoa says 80 percent of developers earn 3 percent of the revenues. 1 percent own a nice car.

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