Apple announced today that it will now allow the capability to purchase virtual goods in its free apps on the iPhone and iPod Touch. This is a huge deal for app developers worldwide. The new capability will enable free apps to be created leveraging the wildly successful virtual goods model that social networking platforms like Facebook and MySpace have enabled. This move will certainly start a wave of new iPhone app innovation as now developers can upsell virtual goods within their free apps.
This move should have a huge impact on all the free games that live off of the sale of virtual goods. Up until now game developers had to offer ‘Lite’ versions of the games on the Apple app store and try to up sell their users to the paid-for more robust games – typically with low conversion rates. Now game developers can release their titles and enable their in-game virtual goods engines to build revenue as they have been able to do in the social network world.
Apple has definitely made the day for thousands of developers around the globe. Games today account for roughly 20% of all the apps on the iPhone and iPod Touch. Most if not all of those games are not profitable today. In fact many of the game developers run their iPhone games as “loss leaders’ just to keep their presence position on the platform. Now they can actually begin generating revenue.
It goes without saying that this is probably the biggest announcement yet that Apple has made to developers of iPhone apps. I am excited to see the new, innovative applications and games that will be created by developers now that this revenue generating opportunity exists. Big news from Cupertino, California!
Related stories:
- Challenge Games releases GridIron Live on Facebook
- hi5 turns to social gaming to fuel user and revenue growth
- Zynga’s new social game hits 10 million users in one week
- Trigger Studios launches “Survive 2012″ iPhone app
- Playdom fueling up to take on social gaming market
Related posts:
I usually dont post in Blogs but your blog forced me to, amazing work.. Kind regards from france
Thanks – hope you enjoy our coverage of the social media revolution! I appreciate the support.