In-Game Purchases to Steer Mobile Gaming Revenues Go Past $11 Bn, Juniper Study

Posted by avijit.bajpai on December 1, 2010

In what comes as a shocker for those nerdy industry enthusiasts who initially shrugged off the kooky world of mobile gaming, a recent research study has pitched that the mobile gaming revenues will surpass the staggering $11bn mark by the end of 2015. And most of the revenue percentage will be driven by in-game purchases, popularly known as ‘freemium apps’ among developer folks.

This exciting study, conducted by UK-based research major Juniper Research, purports that the flourishing idea of in-game purchases would surpass the revenues from traditional pay-per-download games in as early as 2013. Apple iOS-powered devices will be among prime key drivers of this lustrous growth, the study touted. Apple has asserted earlier that it would let the developers bring games that are free to download but backed by in-game purchases. Gaming outfits like Ngmoco, which was acquired by the Japanese gaming firm DeNA for around $400mn, would propel the adoption of freemium model games. This striking model involves doling out free-to-download games that are supported with host of incremental add-ons, such as clothes, levels, weapons, and other such stuffs.

The study iterated that in spite of tremendous growth potential in the guise in-app purchases, ‘discoverability’ of apps on these heavily crowded app stores would remain a point of concern for developers. Users too would find it difficult to sift through these walloping numbers of applications on app stores to reach out to the real jewels, the study concluded. Outpouring of applications on these app stores has made the marketing conundrum for developers even trickier, and innovation in marketing tactics, not in creativity, appears to be the need of the hour.

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