Filed under: Analysis / Opinion, Gaming, Rumors, Software, Apple, iPhone, iPod touch
Rumor: Apple considering a $19.99 price point for App Store games?
It's just a rumor at this point, but yes, apparently it's floating around out there that Apple may be considering a $19.99 price point for "premium" games in the App Store. That would be a direct response not only to bigger developers who say a 99 cents to $9.99 price point is too low for them to justify the cost of production, but also to competing game systems like the DS and the PSP -- if the same games were available for the same price on both systems, Apple could use the iPhone's extra features to justify even more purchases.It's an interesting idea, and actually, though obviously it would cost consumers more, the bottom line in the App Store has always been worth, not price -- there are currently premium games being sold on services like Xbox Live and the Wii's Virtual Console for $20, and gamers are willing to pay, as long as they get the bang for the buck that they expect.
We'll have to see what approach Apple takes here. On the music side of things, they were obviously very hesitant to move up the price points (though even there, they made concessions and did so). As popular as the App Store is, a higher price point, if used correctly, could really open up the kinds of software we're seeing there.
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Reader Comments (Page 1 of 2)
Rick Sanchez said 4:16PM on 1-29-2009
$19.99? I feel like I just woke up and I'm in the land of Oz. Steve takes medical leave and this is the kind of half baked ideas Apple comes up with? I'm glad I sold my AAPL when I did, this company is sinking fast.
A $19.99 price point will make switching to the T-Mobile android powered phone a no-brainer. Cheaper service, more capable OS, and no ridiculous price points for games.
I'm sorry, but if you can't figure out how to make something for 99 cents on the iPhone you've chosen the wrong platform to develop for. NO ONE is going to spend $20 for a game to play on the toilet.
NO THANKS, APPLE.
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Swimatm said 4:37PM on 1-29-2009
"this company is sinking fast"
That's an informal fallacy called "composition." It's where you assume something about the whole (Apple) by only knowing something about a part of it (Apple making "half baked" ideas).
glad said 6:10PM on 1-29-2009
Is this guy for real who buys a phone simply for the games? Stop your whining will ya as no one is forcing you to buy them it's as simple as that. This is capitalism at work better get used to it. If they increase the prices then I won't buy just like I never buy off iTunes. It's like you think Apple owes you a livingwhich it certainly does not.
Eli Sparkles said 4:25PM on 1-29-2009
Macs hate freedom. Apple hates freedom. Don't use proprietary products
How can you use proprietary products?
Obviously your freedom is being given away.
Do you even care you're binding yourself to slavery.
Apple is an enemy of freedom and openness
Palm hates freedom too
Palm will win and they won't do stupid shit for their app store
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bill cant fart said 4:36PM on 1-29-2009
You might be in the wrong place to say stuff like that.
Kevin said 4:38PM on 1-29-2009
You must be on crack.
Any device you use is proprietary.
Sam said 5:44PM on 1-29-2009
Binding yourself to slavery? Freedom is being given away?
Er, you are aware this is just a phone and that you have wasted a lot of tin foil?
Johnny said 4:22PM on 1-29-2009
First of all, they haven't said this is going to happen for sure. If it does, it doesn't mean ALL games are going to be $19.99, only the ones that want to be and are probably worth that much. There will still be all the same free and cheap crap in the App Store.
This is exactly what I've been thinking Apple should do to appease developers and allow customers to find games without looking through all the crapware. I think they should do this for all categories, not just games. Then, they just need to allow demos.
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VanillaSpice said 9:56PM on 1-29-2009
They do allow demos - you may have noticed all the "Lite" versions in the App Store. I think you mean integrate demos into their system instead of the developers having to make a separate app, but I believe this is a short-sighted and restrictive plan, because the current system allows the developer to decide the content and conditions of their demo, what levels and content to include and exclude, etc, rather than forcing all developers to accept only time-limited (but full-functionality) demos.
And I think you are dreaming if you believe that a $20 category will prevent people "looking through all the crapware" - all the price points in the store are burdened with crapware, and the $20 category will be no exception. All the price points also have some bargains and great buys, but we have seen some ridiculous charges being asked, for poorly-designed and low-functionality software. That will continue no matter what the price point is (remember Superman on the N64 anyone? Paid AUD$90 for that, I did!).
Johnny said 2:05PM on 1-30-2009
I suppose the 'lite' versions are an alternative, but not a very elegant one. I think if done right, they could allow the demo to be any kind of demo they want - limited by either features or a variable time.
My point about the 'premium' category isn't that people won't look through the crapware or that developers won't try to charge $20 for what is really crapware but that it will give someone a place to look if they want a 'premium' app. It would also appease developers who are whining for a way to make 'premium' apps and not be buried by cheap apps.
elindiano said 4:37PM on 1-29-2009
20 bucks is fine for a high production value game; however, the iphone is NOT a gaming machine like the Nintendo DS and PSP.
there is also some merit in have a physical box, an actual game cart and instruction manual that comes with hand held games.
when i am able to play a game that doesn't crash or fails to launch, when it runs out of memory, due to bad developers, then well talk.
im laughing about this now! 20 buck, whatever!
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russ said 4:39PM on 1-29-2009
I'm not quite sure what this means.. you can charge whatever you want for your app or game in the app store.
The only reason I would see for a "premium" section is that companies like hudson or namco or sega or whoever would want to pay a premium to have premium visibility in the app store and in turn be able to charge a premium without being moved under the 99c fart apps in the popularity list.
Which is kind of unfair that they would get their own storefront.. but they would be paying for it, I'm sure.
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Dustin said 4:49PM on 1-29-2009
This a rumor brought up by the same kind of people that think government oversight is what will deliver us from a government-made recession. What the hell happened to the free market? Granted, Apple can do what they want with pricing, however, it's likely going to hurt more than it would help.
Developers can price their games however they'd like now. What's keeping big shot developers from getting $20/game now? Consumers. Period. They're paying what they are willing to part with and what they think an app is worth. A lot of people (including myself) payed $20 for BeatMaker, and you don't hear people complaining about that do you? They've had tons of sales—they were even in the top 100 for some time. It's all about perceived value.
Big developers need to get off their high horse. While they're pouting, other, smaller (sometimes individuals) developers are making a killing. But what do I know... I'm obviously not with the socialist majority.
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basscadet said 9:50AM on 1-30-2009
"government made recession"??? Are Wall Street sharks members of any government? "socialist majority"??? Do you even have any idea how far from even a socialist minority US is?
"What the hell happened with the free market"??? It burned and crashed and guess what, you and me and all the people that never benefitted (or more applicably: looted) it get to pay the damage. There was never any free market cos it could never work the way big profit wants, there has to be a taxpayer covering up the damage. Turn off Fox News and have a look at what reckless politics have caused.
Reidiq said 1:22PM on 1-30-2009
FYI basscadet: The reason why we are in the stink we are in is because of government policies forcing banks to make bad loans to people who should be renting. So yeah, government is responsible (the scope of)
Wall Street on the other hand, with their big, big bonuses for those nasty rich bastards makes up a large amount of tax revenue. Bonuses are down almost 50% and guess what NY state and many others are doing? Taxing the hell out of everything possible to make up for it. So next time you buy a Coke and Snickers bar, you can thank the government for it, and yell at Wall Street for not giving big bonuses to CEO's under circumstantial contracts or deals to save them money buy giving them money.
I'll break it down for you:
A company is losing $300 this year. The CEO of the company has in his contract that every dollar he saves he gets 5 cents for it. He saved over $200 million. He gets $10 million. Sounds like a good deal to me. That $10 million gets taxed at ~ 30% or so (Just a figure) $3 million goes to the state, federal, etc.
So before you blame Wall Street, check your facts sir.
Gazmik Fizzwidget said 4:49PM on 1-29-2009
Um... developers are free to set any price point they want on their App Store products. Apple doesn't control pricing at all (well, beyond the requirement of $x.99 prices, minimum of $0.99 and maximum of $999.99). The whole "Apple hesitant to move price point" thing is irrelevant.
Any developer could release a $19.99 game right now if they wanted to... but right now, success on the App Store is sort of a chicken-and-egg game. People don't browse very deep into the store, so the only way to get noticed (and sell) is to sell enough to get on the top 10/25/50 lists. When your $19.99 product is competing against dozens of $.99 iFart-alikes, it's hard to get popular enough to keep selling.
Following the source links, it looks like the real story here is that Apple is considering a special section for $19.99 games, which would help them stay visible.
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Alex said 4:54PM on 1-29-2009
$20 better include an extra battery!
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Jash Sayani said 4:54PM on 1-29-2009
If they keep increasing the prices, it does not mean people would shell more money. To a certain extent, they would, but the downfall would start. And I don't think this is a good time for iPhone downfall as other break-through devices like the Blackberry Storm are hitting in.
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Cabbage said 4:56PM on 1-29-2009
What's the difference between a 'price point' and a price?
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robogobo said 2:54PM on 1-30-2009
"price point" makes you sound like an idiot trying to sound smart.