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In-app purchases not so hot for some developers

PocketGamer.biz has an interesting interview up with Pangea, makers of the iPhone physics puzzle game Enigmo, and they say that so far, their experience with in-app purchases has been pretty lukewarm. The software itself has sold over a million copies, but only a very small number of those customers are going for the in-app purchases -- about 25 per day, according to Pangea's Brian Greenstone. 25 per day may not be bad for a smaller developer, but Greenstone says he "was expecting hundreds."

Why aren't the microtransactions doing so hot? It's going to take time, first of all -- customers need to learn the value of picking up content piece by piece, and developers need to learn exactly how to price and plan the stuff out. On an established download service like Xbox Live, add-ons and content packs have become de rigueur, though some of those battles are still being fought. But on the App Store, not only are prices still up in the air, but in-app purchases are hard to find, and they're all over the map in terms of value versus investment.

Greenstone seems to believe what I'd tend to agree with: that after all of the dust has settled, customers will pay for content that's worth paying for -- he's just given up on worrying about pricing, and is focused on delivering content that's worth whatever he wants to charge. Eventually, both devs and customers will settle on a fair price, and when that happens, I'm sure we'll see some major in-app purchase sales.

PocketGamer.biz has an interesting interview up with Pangea, makers of the iPhone physics puzzle game Enigmo, and they say that so far,...
 

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Dom

One of the issues is that more often than not, paid iPhone apps are a rip off. At least half the time I've paid for an app I've immediately felt some level of buyers remorse... but I *had* to buy the app in order to see how it worked.

If I only get 5 minutes of yet-another-tilt-your-phone-to-make-stuff-move-a-bit gameplay, then once I've realised that, I'm never going to pay for more levels.

September 22 2009 at 9:20 AM Report abuse rate up rate down Reply
NetMage

Why isn't this a good way to test a game at a low entry fee?

September 22 2009 at 7:20 AM Report abuse rate up rate down Reply
Cy Starkman

In-App purchasing makes sense for certain categories.

Like the map program above where you don't want a) 40 apps one for each map in the store and b) to have to pay for all the maps when you want only one or two.

Or content viewers, like the comic book reader.

Potentially also professional apps so the developer doesn't need to have multiple copies with different features (think accounting software) but you pay for "time billing" if you need it.

In games it just comes over as a rip off, after all what is it saying a) that the developer hasn't actually finished the game yet and will they ever or b) that the developer is trying to milk the customer.

Experience is also evidence also. I've paid for games on the Appstore that claimed there would be more levels, weapons whatever and nothing has come and those extra features were free. Most recent example would be Mini-Gore.

Considering this as the current experience, why buy a shell with alleged paid content yet to come.

September 22 2009 at 2:59 AM Report abuse rate up rate down Reply
1 reply to Cy Starkman's comment
TonyRockyHorror

You mention the one case that comes first to mind where I wholeheartedly endorse in-app purchases: comic and book readers.

That said, I think those apps should be free if the dev who makes the reader takes a cut of profits from the sale of the comics or books. Think of it this way, if I have to pay for the app to read a comic or book, that's one less comic or book that I can read. And the whole point is the comic or book, NOT the reader.

September 22 2009 at 12:22 PM Report abuse rate up rate down Reply
JJN

I think the in-app purchasing isn't working because app purchases are already the micro transactions. People buy and try out most apps because they're cheap. Buying an app is like buying an XBoxLiveArcade game or some maps for a full game, though apps on the iPhone are standalone and can be well done, they're still little games and applications.

September 22 2009 at 12:03 AM Report abuse rate up rate down Reply
aepilev

What's the name of the travel guide app pictured in this posting? I'm looking for a good Chicago travel guide.

September 21 2009 at 9:39 PM Report abuse rate up rate down Reply
Tom Smale

Greenstone is a complete idiot. Or a complete Kool-aid drinker. Or both.

If you talk to gamers, listen to their podcasts, read the forum threads, the gaming community is almost 100% united against in-game fees. EVERYONE thinks its an awful idea. Same thing with in-game advertising. These companies pay for market research which skewers "test" data to give them the results they want and inside their bubble, they actually believe consumers are screaming for this stuff. They're deluded in the same way a spammer will tell you his messages are "making the consumer aware of quality products he wants."

And by the way, all this FUD about developers abandoning the iPhone unless they can push through their price gouging models from the PC, PS3, Xbox, DS, PSP, and Wii? Good. See you later. Goodbye. The "amateur" developers seem to be doing just fine, putting out quality games, supporting them, all at an excellent price. Don't let the door hit your ass on the way out, Pangea.

Nobody, nobody, I mean... NOBODY, wants to play a game where you have to spend $0.99 for guns, ammo, health packs, and other items. I hope consumers continue to ignore these crap ideas in droves until the game companies acknowledge the message.

September 21 2009 at 6:48 PM Report abuse rate up rate down Reply
RestaurantShareApp

I also don't plan to use in-app purchases in my apps in the nearest future. The idea of buying an app for 0.99 and then finding out that all the nice features cost 5x more is scary enough for most of the people.

September 21 2009 at 4:38 PM Report abuse rate up rate down Reply
Matt

Myself and everyone I know will never be a part of micro-transactions. It's such a load of crap. I already bought the game and you want to charge me a little bit here and there for more? No thanks. Those of us with an Xbox360 or PS3 don't take part in the DLC on those consoles either. Why? Those map packs and such are free on the PC versions of the games. Why should I pay $10 for 3 maps when the PC version gets more maps for free?

Now iPhone developers expect me to pay even more for a game or app that probably wasn't worth the money to begin with? I don't think so. Most stuff on the App Store is nowhere near worth the $10 launch prices, and usually still not worth it when it hits the $5 mark. Theres no way I'm going to pay $.99 for more stuff to add on for an app that should have been cheaper to begin with.

Heres how I look at it. I already bought the app once. EVERYTHING should have been included with it from the start. If you want to add on to it, then do it for free. Thats the way its been for over a decade now with PC gaming and thats the way it will stay. If you want to charge for extra content it will fail and it will piss off the majority of customers, just the way Xbox and PS gamers are pissed now that they have to pay for content others get for free.

If you want to charge $5 or $10 for an app, MAKE IT GOOD. I can't tell you how sick I am of seeing a thousand different Sudoku or Mahjong games, or tilt to control racing games. To be perfectly honest, the App Store is mostly junk, save for a small handful of good apps. If you expect people to buy your app and then pay more after the fact, you're delusional. Flooding the App Store with junk and then expecting people to pay more for that junk after they've already paid for it will be what brings the whole thing down crashing and burning.

September 21 2009 at 3:51 PM Report abuse rate up rate down Reply
Dakota Trotter

Now I'll admit that it's been a while since I last checked Enigmo's download levels, but the last time I had all of the extra level packs were for "Children", which really me and many others like myself.

September 21 2009 at 3:29 PM Report abuse rate up rate down Reply
Posimotion

We are thinking of going to this model in the early future and am psyched to see this demographic being reported on Tuaw. The distant people have with what they are buying for an upgrade is the hard part. Moreover, this is one of the first large scale programs like this. Many people have yet to experience micro transactions...at least in the US.

Only time will tell

September 21 2009 at 2:55 PM Report abuse rate up rate down Reply
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