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Gameloft CFO calls app development 'an ugly scene'

Gameloft's CEO Alexandre de Rochefort spoke last weekend at the Reuters Global Technology Summit in Paris, and gave a particularly stark view of this growing global app market. While a lot of big time developers are bullish on the app market and its possibilities, de Rochefort presented a more tempered view. He called it "an ugly scene," and said that "the smartphone market is not a goldmine for developers. It's a bit like playing the lottery."

He's got a point -- there are some major developers making a lot of money selling their apps on the App Store (and Gameloft is one of those), but there are also thousands, if not millions, of developers out there whose apps just can't seem to find the public's interest. And low-budget, one man developers might have trouble even recouping the costs of their apps if not featured by Apple or the press, not to mention huge developers who risk huge budgets on games that might not fly.

Of course, some may say that's business, and for the most part, they'd be right. But a lot of times the app market is portrayed as a new gold rush, with millions of dollars of revenue available for anyone who releases an app. That's not quite the case, especially a few years into the app scene.



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Gameloft's CEO Alexandre de Rochefort spoke last weekend at the Reuters Global Technology Summit in Paris, and gave a particularly...
 

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Eideard

Duh!

May 24 2011 at 8:20 AM Report abuse rate up rate down Reply
info

The problem is just that the store is flooded with content. If you see what's being submitted daily, it's just scary.

I think Alexandre is right. It's a tough business.

May 24 2011 at 8:16 AM Report abuse rate up rate down Reply
ghostshadow

Maybe if they'd made some decent games that you can get sucked into playing... then, maybe just then, they'll do a bit better. Ripping off other peoples games and complaining about how crappy the market is - is just stupid. They've had some decent titles here and there but many of them feel very half-assed as it is. So why should they be surprised their margin is lower than other big named developers?

May 24 2011 at 2:06 AM Report abuse rate up rate down Reply
Dave Reed

While a well-designed app that appeals to a wide audience will often get noticed, niche apps are less likely to make much money without some publicity. I have an iOS app for teachers (Attendance) and a new Mac app (GradeA) in the Mac App Store. Attendance has received a number of favorable reviews and publicity (including Macworld and the Chronicle of Higher Education), but it's never going to come close to earning enough money for me to quit my day job. It's too soon to tell if GradeA will sell well as it was released in March and the best months for teacher apps are August/September and January.

The crucial factors for an app that will make money are obviously a good idea that is well-executed and an app that appeals to a fairly large audience that is either the best app in its area or the only/first app in an area. And there's still some luck involved to get noticed. I agree with the comment that if you want to make a living developing apps, the best way is to be a contractor for hire.

May 23 2011 at 10:38 PM Report abuse rate up rate down Reply
NewsReader

I assume this is all that is left to do right? Sell apps on Craigslist?

http://newyork.craigslist.org/mnh/sys/2398853989.html

May 23 2011 at 9:21 PM Report abuse rate up rate down Reply
the watcher

if an App is well made it will have no problem getting on the top 25 list, there is a lot of crap app in the app store and developer think just because they made it into the apple store they should be making a lot of money NOPE! make it good and also something people might want and they should have no problem making money.

May 23 2011 at 7:53 PM Report abuse rate up rate down Reply
2 replies to the watcher's comment
rickb

No offense but I consider that to be an extremely naive and pollyannaish view of how the world really works. I suppose that makes iFart or whatever the best app ever made? Or windows better than OS X? Success is only partially or sometimes never about "quality" it's mostly just dumb luck and/or marketing. Shooting for the top 25 and a million dollars a month shouldn't be basis of a business plan. You can try your best and still fail. Really it's the mass in the middle that should be looked at to see if the platform is really viable.

May 23 2011 at 8:47 PM Report abuse rate up rate down Reply
unit057mail

I could almost agree, A good free App WILL make it to the top 100. Which in itself is a pretty good result for any developer.

May 24 2011 at 4:31 AM Report abuse rate up rate down Reply
Vincent Vatcher

I agree with the comments made above. I have 7 apps available on the app store at different affordable price points that average ~$300 a month for all sales combined. Sales are slowly going up as I release new apps and learn consumer trends. Spending a lot of time on an app for a niche category will net you 1-2 units sold per day, sometimes none.

May 23 2011 at 7:01 PM Report abuse rate up rate down Reply
rickb

Actually I'm making a very good living from app development. Namely, by having people pay me to code apps for them. That's the sure thing, my clients can worry about actually making money from them, that's their problem. I've long since given up trying to make a profit from my own apps, I just do them for the enjoyment and experience at this point.

May 23 2011 at 6:46 PM Report abuse rate up rate down Reply
5 replies to rickb's comment
KosherSalt

A valid thought... but how does the mobile platform differ from the desktop platforms? The first to develop apps for any platform are at an advantage (remember monkeyball for iphone?) but once things normalize, I fail to see how developers are any more challenged by mobile platforms than desktop platforms or *gasp* console platforms.

May 23 2011 at 6:29 PM Report abuse rate up rate down Reply
Jim

> Of course, some may say that's business, and for the most part they'd be right. But a lot of times the app market is portrayed as a new gold rush, with millions of dollars of revenue available for anyone who releases an app. That's not quite the case, especially a few years into the app scene.

You're confused about what a gold rush is. A gold rush is when people flood a market thinking everybody's going to get rich when only a minority do. There's no contradiction between a minority of app developers getting rich and it being a gold rush, that's exactly what a gold rush *is*. A gold rush is *not* when everybody gets rich.

May 23 2011 at 6:12 PM Report abuse rate up rate down Reply
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