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Filed under: Gaming, iPhone, App Store, iPod touch

Rock Band on iPhone is a hit

by Mike Schramm (RSS feed) on Oct 21st, 2009

Disgruntled TUAW commenters, I'll save you some time: "OMG Mike of course a game powered by EA and one of the most popular franchises of all time is a hit. Try reporting some real news!" But not so fast -- Rock Band, which hit the App Store top 10 and conquered the Top Grossing list just days after its release this week, is actually a more unlikely hit than you think. For one thing, it sold at a price of $9.99 only -- no free versions, no trials, no pricing sales or schemes that have become the rule rather than the exception on the App Store lately. And for another thing, it had a comparable competitor in Tap Tap Revenge 3, selling for just 99 cents. TTR3 is a hit as well -- it's topping the list of paid apps that Rock Band is on -- but many people figured consumers would pass on the $10 app for the 99 cent one, and many people were wrong.

In short, even though, yes, Rock Band has EA's power behind it and it's based on an already popular game, it actually has bucked what we've seen so far: prices racing to the bottom, and tough chances of making a hit game, much less a profitable one, at the $9.99 price point. We don't yet know whether the game is profitable (or how either Rock Band's or TTR3's microtransaction models will do in the future), as it's just too soon.

But Rock Band is already seen as a game that stands as a shining example of what many were thinking wasn't true: big publishers with big name titles can put out big games at (relatively -- $10 is still cheap when you're talking about Rock Band at large) high price points and see them sell.

Tags: app-store, apps, content, ea, free-versions, hit, iphone, microtransactions, pricing, rb, rock-band, tap-tap-revenge-3, top-grossing, trial-versions, ttr

Filed under: Gaming, Software, iTunes, Developer, App Store

Why the App Store is working just right

by Mike Schramm (RSS feed) on Oct 7th, 2009

Edible Apple has an interesting analysis up about this Newsweek article claiming that App Store developers aren't getting rich. Newsweek basically claims that all those success stories we've heard about App Store developers have a darker side: if they aren't already buried in costs from developing that hit app, they're desperately scrambling to rise above the noise and get another one's sales up on the App Store. [For a similar perspective to Newsweek's, check out this post from Ged Maheux at the Iconfactory.]

Edible Apple replies that that's true, but a closer inspection of the numbers shows that these devs are actually making plenty of money -- while their costs are going higher than they expected (one example has a developer paying over $100,000 to make $200,000) there is still money to be made. What developers are actually discovering, says Edible Apple, is that the App Store isn't a gold rush -- it's a business.

That's an interesting point. In the beginning, the App Store was a gold rush -- you could hack together a fart app and come up with a few month's worth of beer money over night. But with almost 100,000 apps, it's a different ballgame. You either need to come up with an original idea that people are interested in, or polish an existing idea until it shines so bright it's unavoidable. And as Edible Apple says, that's actually a good thing. There is money to be made in the App Store these days -- multiple developers have proven that already. It'll take work and luck to do it, but isn't that the case with any successful business?

Tags: analysis, app-store, costs, edible-apple, gold-rush, iphone, money, moneymaking, newsweek, pricing

Filed under: Gaming, Software, iTunes, iPhone, App Store

iPhone TCG to charge $9.99 for in-app purchases

by Mike Schramm (RSS feed) on Sep 25th, 2009

Just the other day I was talking about how prices were all over the place for in-app purchases, and now here's a company that's just going all out with the microtransaction model (or macrotransaction, maybe, in this case). Urban Rivals is an online MMO trading card game, and they're going to start selling packs of the cards directly within the game. And the pricing is interesting -- you can buy one pack of three cards for 99 cents (same as the price of the game itself, though there will be a free version to play as well), or you can pick up 11 packs of those cards, 33 cards in total, for $9.99, almost ten times the price of the actual game.

This is an interesting case: the game itself already has a working model outside of the App Store, so they've already proven elsewhere that people will pay for this extra gameplay, not to mention that players of the iPhone game can play right alongside players on other platforms. And there's an interesting twist with the game's currency -- outside of the iPhone, the game lets you either win currency which you can then use to buy cards, or buy the currency with real money and then buy cards with that. But Apple has apparently said no to ingame currency being sold for real money, so instead, Urban Rivals is selling cards during the in-app purchases, skipping the ingame currency completely.

Of course, it remains to be seen whether or not this will actually work -- just because the game is successful outside the iPhone doesn't mean it'll work on Apple's platform. But if in-app purchases of this kind do become a big deal, we might see other developers trying to come up with ways to sell content like this -- for developers who feel that the App Store's prices are too low, they may instead be able to come up with the funds they need through sizable in-app purchases.

Tags: app-store, apple, card-packs, gameplay, in-app-purchases, iphone, mmo, money, pricing, tcg, urban-rivals

Filed under: Analysis / Opinion, Gaming, Developer, iPhone, App Store, iPod touch

Updating doesn't help your iPhone app, but price drops do

by Mike Schramm (RSS feed) on Jul 30th, 2009

Here are two different insights from Pocket Gamer about how developers can grow the profile of their iPhone apps. The first comes to us from the wisdom of Peggle, that game that I just can't stop playing. Apparently, they've coined the term "Peggling," which means lowering the price of your app, and seeing a huge benefit from it. Whenever a game drops its price down to 99 cents, much as Peggle did soon after release, it sees a significant bump in the charts. I'm sure there are many other factors at play here -- Peggle was a great game, so you can't sell more of a crappy game just by selling it for cheaper, and I saw a lot of Twitter and blog attention when the price dropped, so it pays to have people watching the price in the first place. But under the right circumstances, dropping the price can do a lot for a game that's already selling pretty well.

But an update, apparently, won't. That's what the makers of Zen Bound told Pocket Gamer -- they say that when they released an update with new levels and new features, it didn't make a difference in their sale numbers at all. Games like Pocket God have made a reputation for themselves by providing regular and solid updates, and certainly it seems like those updates have at least spurred sales, if not made them blow up, but the Zen Bound guys say that singular updates on major products probably won't kick sales into gear.

Interesting. We're at least a few generations into App Store sales at this point, and we're started to see trends and consumer behavior in better relief; developers are getting better and better ideas every day about how to price and service their apps and customers.

Tags: app-store, app-store-pricing, attention, iphone, lessons, making-money, money, peggle, pricing, release, twitter, update, zen-bound

Filed under: Apple Financial

Apple has 91 percent revenue share of premium market

by Casey Johnston (RSS feed) on Jul 23rd, 2009

Apple's quarterly earnings aren't the only bits of good news going around: according to Betanews, the market research firm NPD has found that Apple's revenue market share in the premium price segment (computers costing $1000 or more) is 91 percent, up from 88 percent in May.

Not only is this good news for Apple, it is a continuation of a positive trend: their premium revenue share is way up from the first quarter of 2008, when their cut was about 66 percent. However, most original equipment manufacturers and Microsoft prefer to measure success by unit market share, or how many individual computers were moved regardless of price. Gartner and IDC place the unit market share of PCs running some version of Microsoft Windows at 90 percent, while Macs have 8.7 percent.

Breaking down the numbers, this news isn't too surprising. According to NPD, the average selling price of a computer sold at retail in June was $701. Splitting this figure into Macs and PCs gives an ASP of $515 for any Windows PC sold. A Mac, on the other hand, has an ASP of a whopping $1400.

Considering that Apple chooses not to wage the netbook price war and that the bulk of PCs purchased cost less than $1000, it makes sense that Apple would control the premium segment. They were also able to boost their sales figures in this bracket by lowering the high-end prices $100 or more on each model while keeping all but one computer in the $1000+ segment. But hey, we'll take good news however we have to slice it, right?

[via The Loop]

Tags: market, marketshare, npd, price, pricing, q3, q32009, sales

Filed under: iPhone

AT&T revises 3G S iPhone upgrade policy

by Tim Wasson (RSS feed) on Jun 17th, 2009

It's no secret that I didn't mind AT&T's pricing of their 3G S upgrades. However, 3G owners were upset that they were not offered the same discounts as new customers or those who had not fulfilled their two-year contracts.

Well, good news for those 3G owners who are wanting to upgrade to the 3G S. AT&T listened to your complaints and published an open letter and YouTube video explaining that current 3G customers may be given much better upgrade pricing when the 3G S launches. From the open letter:

"Beginning June 19, iPhone 3G customers [who are] eligible for an upgrade in July, August, or September will get our best upgrade price of $199 (16 GB) and $299 (32 GB)." This is definitely great news for some 3G owners, as it bumps up the date when they can upgrade for less -- however, if your discount date is past September 30, you will still have to wait to get the best pricing. Your upgrade-eligible date is based on both your contract age and your service plan; the more money you spend with AT&T every month, the sooner they will replace your phone.

There is also good news for those of you who have already pre-ordered the new iPhone: if the new eligibility window affects you, AT&T will issue you a credit for the difference.

Although I don't think that AT&T had to make this change in their policy, it's encouraging to know they're listening to their customers and making changes. Now that you're listening, AT&T, how about getting on the ball with MMS and tethering?

Tags: ATT, iPhone 3G, iPhone 3G S, Iphone3g, Iphone3gS, Pricing, upgrade

Filed under: iPhone

French and German carriers release iPhone pricing (Update: and Italy's, too)

by Casey Johnston (RSS feed) on Jun 16th, 2009

Heads up, mimes, and er... strudels: the iPhone 3G S pricing for France and Germany has been released!

One of France's providers, Orange, plans to charge €229 ($318US) for the 32GB version and €149 ($206US) for the 16GB with a one-year minimum contract. The least expensive contract will cost €39 and last two years. Orange plans to open its Champs-Elysées store one minute past midnight on the day of release, which means the French will have their iPhones in hand a full 14 hours before the U.S.

Orange is also releasing a new data plan that has four hours of calling and unlimited e-mail and text messages, 60 TV channels and Internet access through 3G and WiFi at €52 per month, an imporvement over previous plans with fewer TV channels and unlimited texting only at certain times of day. Tethering will also be available at €9.90 per month for 200MB of traffic, or €29.90 for "unlimited service" that will be throttled once the user exceeds 1GB of data.

Germany's T-Mobile, in a similar approach to O2 in the UK, is pricing the iPhone 3G S at €1 for both models, but to get that price the customer must agree to a two year contract at €119.95 per month. The most expensive configuration at the outset is the 32GB phone at €249.95, but it will allow for cheaper contracts.

Orange's competitors, SFR and Bouygues Telecom, have not yet released pricing information. SFR plans to release the 3G S on June 24th, and Bouygues has not yet announced a date.

Update: Italy's provider, TIM, has also released their pricing scheme for prepaid plans: €719 for the 32GB phone and €619 for the 16GB. Thanks, antiorario!

[Via Macworld]

Tags: france, germany, iphone, Iphone3gS, orange, price, pricing, t-mobile

Filed under: WWDC, Snow Leopard

Apple to release $29 10.6 Snow Leopard Upgrade in September

by Erica Sadun (RSS feed) on Jun 8th, 2009

Today, Apple announced a ship date and upgrade pricing for Mac OS X 10.6 Snow Leopard. 10.6 will debut this September as an upgrade for Mac OS X Leopard users for just $29. "We've built on the success of Leopard and created an even better experience for our users from installation to shutdown," said Bertrand Serlet, Apple's senior vice president of Software Engineering in an Apple Press Release. "Apple engineers have made hundreds of improvements so with Snow Leopard your system is going to feel faster, more responsive and even more reliable than before.

Snow Leopard features include built-in Microsoft Exchange 2007 support along with a slicker install process, faster applications, and 64-bit versions of standard applications that boost overall performance. Apple brags that "[u]sers will notice a more responsive Finder; Mail that loads messages 85 percent faster and conducts searches up to 90 percent faster; Time Machine with up to 50 percent faster initial backup; a Dock with Expose integration; a 64-bit version of Safari 4 that boosts the performance of the Nitro JavaScript engine by up to 50 percent and is resistant to crashes caused by plug-ins."

In addition to the $29 single user upgrade, a family pack upgrade will cost $49. Tiger users will pay $169 for a 10.6/iLife box set or $229 for a family pack.

All users who purchased or will purchase a new qualifying Mac between 8 June 2009 and 26 December 2009 will receive a free upgrade package and pay $9.95 for shipping and handling. You must request your up-to-date upgrade within 90 days of your original purchase.

Snow Leopard requires a minimum of 1GB RAM and runs on Intel-based Macintoshes. Full system requirements are hosted at Apple's tech specs page.

Tags: 10.6, Date, Mac OS X, MacOsX, OS X 10.6, OsX10.6, Pricing, Release, September, Snow Leopard, SnowLeopard, Upgrade

Filed under: Gaming, Software, Developer, iPhone, App Store

Peggle on iPhone delayed to May 12th

by Mike Schramm (RSS feed) on Apr 30th, 2009


Bad news for those of you who've been drooling to play Peggle on the iPhone. As you may have noticed, it didn't come out in March as we were originally told. The good news is that our friends at Joystiq have gotten a new date for the addictive PopCap game's release on the App Store, and it's close. The game will be out, we're being told, on May 12th. There's no price given yet, but we're with Joystiq on this one too: it probably won't be as low at 99 cents. At $9.99, it would probably be worth it (Peggle is awesome) but pricey -- we're guessing the price will end up right around $4.99.

Joystiq's been playing the game too (lucky peg-hitters), and while they are saving their full impressions for an upcoming review, they hint that the game won't disappoint. We can't wait -- even though Peggle is pretty much everywhere already, from the Mac to Xbox Live to the classic iPod and even in World of Warcraft, there's still room for a little portable Peggle in our lives.

Tags: app-store, date, games, iphone, ipod-touch, joystiq, may, may-12, peggle, popcap, pricing, release

Filed under: Analysis / Opinion, iTS, Multimedia, iTunes

Billboard: iTunes prices up, sales down

by Mike Schramm (RSS feed) on Apr 13th, 2009

I coulda told you this, though I am a little surprised that we've seen the results so fast. Despite iTunes having put the new tiered pricing into effect just last week, Billboard is reporting that they've already seen sales drop on the higher-priced tunes. The iTunes Top 100 chart has 40 different songs with a new price of $1.29, and one day after the changes, those songs dropped an average of 5.3 places on the chart, while cheaper songs moved up on average. And on the second day of the price change, ten of the tracks that saw their prices rise within 24 hours dropped a huge 12.4 chart positions on average.

Of course, we're talking only a matter of days here, and there are all kinds of things that could have affected this average drop -- lots of the tracks that became expensive were from a Rascal Flatts album, and it could be just that the album has lost popularity, bringing the average down. And don't forget that even though these sales figures may be dropping, they haven't dropped nearly enough to show a loss of revenue (though fewer songs may be selling, they're still making more money).

But for those convinced that higher prices mean lower sales numbers, these first few days of figures will seem to connect all of the right dots. We'll have to wait and see if the long-term effects match up to the figures Billboard has seen so far.

Tags: billboard, drm, figures, itunes, itunes-top-100, macworld, mp3s, music, pricing, rascal-flatts, sales, store, tiered, top-100-chart

iTunes drops all DRM, adds variable pricing

by Aron Trimble (RSS feed) on Apr 7th, 2009

In the never-ending battle of where to spend your George Washington's (the paper ones, that is) some battles are won and some battles are lost. In this case, however, it's turned into a bit of a draw. As we previously mentioned the day hath befallen on which iTunes now "features" a variable pricing structure. The three flavors available are $0.69US, $0.99US, and $1.29US with, according to Apple, "many more songs" available at the $0.69US price point.

The idea of a DRM-free iTunes is definitely a popular one that has been requested for years. The unfortunate side-effect, as imposed by the record labels, is that more popular songs are going to be charged a premium over the tried-and-true $0.99US price point. On the other side, however, is the $0.69US price point for songs that nobody wants are less popular. This is unfortunate because, as Victor mentioned, a single dollar is an easy impulse buy to swallow. I'll add to that the fact that it's easy to understand that 3 songs = 3 dollars; while a price of $1.29US is a little bit more challenging for those of us without calculators in our brains.

In my opinion, record labels are going to see a decrease in sales due to this decision. Many people have iTunes account balances and gift cards that are now going to get them less "tune for their buck." The result of that is consumers will buy less (they have less to spend) and they will be more meticulous in deciding what to purchase. DRM-free, iTunes Plus tracks are a novel idea, but the main benefit will be lost on many consumers. The only change they will notice is that the bill has gone up.

Via Macworld

Tags: drm, itunes, money, pricing, store

Filed under: Analysis / Opinion, Hardware, Retail, Rumors, iPhone, iPod touch

Rumor: Unsubsidized iPhone to be offered by AT&T

by Mike Schramm (RSS feed) on Mar 19th, 2009

Looking to pick up an iPhone, but not interested in getting bogged down by any contracts with "the Man?" Your time may have come -- The Boy Genius apparently got their hands on some slides from an AT&T training session saying on March 26, AT&T will offer a "No-commit" for their existing customers on both iPhone models -- it'll be $599 for the 8GB and $699 for the 16GB.

This isn't quite a deal anyone's planning to jump at, however, since the phones themselves are likely still locked to the AT&T network. Not to mention that you've got to already be an AT&T customer, and they're only selling one phone per line that you've already got. Which means these phones are... for Grandma, who doesn't want a contract and can't make it to the store herself? Businesses might be interested as well, we guess, but for most of us, it's still cheaper to just buy the phone and sign the AT&T contract (assuming that you actually want to use it as a phone).

What it does likely say, however, is that AT&T is expecting an iPhone hardware upgrade, and wants to clear out as much of the stock they've got now as they can (to suckers who are willing to pay more).

[via Engadget]

Tags: business, hardware, iphone, locked, network, no-commit, prices, pricing, rumor, stock, the-boy-genius, unlocked, unsubsidized, upgrade

Filed under: Analysis / Opinion, Software, Apple, iPhone, App Store, iPod touch

Would Blackberry's price minimum ensure a quality App Store?

by Mike Schramm (RSS feed) on Mar 6th, 2009

Here's an interesting idea for the App Store. Gizmodo posts that the new Blackberry "App World" has set a minimum price on its apps, asking no less than $2.99 for whatever you buy in there. At first glance, that's pretty rough -- there are a lot of free apps on the App Store right now that we wouldn't pay 99 cents for, much less $2.99. But then again, Gizmodo is willing to at least suggest the benefit of the doubt: maybe it's done on purpose, to get us past the scourge of the many fart and other useless apps populating the App Store. Maybe if every app is sold for $3 or more, they'll end up all being worth that much, too.

But we have to agree with Gizmodo's conclusion, too: while it would be nice if every app on the store was worth more than $3, there are definitely a few apps out there that are worth having the lower (and free) prices for. And to add to that, it's hard to believe that, even at $3, every app would strive to live up to that price -- most likely what will happen is that you'll end up with just as much crap on the Blackberry's store, except that you'll be paying $2 more for it.

Still, it's an idea. If Apple did a little price tweaking, is it possible that they could ensure a little more quality to what shows up on the store? Or, in the case of the junk that's on there now, will we just end up with higher-priced junk?

Tags: 299, 99-cents, app-store, app-store-pricing, app-world, apps, blackberry, gizmodo, iphone, ipod-touch, post, pricing

Filed under: Analysis / Opinion, Gaming, Software, Odds and ends, iPhone, App Store, iPod touch

What's wrong with buying apps for 99 cents?

by Mike Schramm (RSS feed) on Jan 26th, 2009

Dan Moren over at Macworld has picked up the App Store pricing gauntlet yet again. He somehow equates the iPhone's price dropping to $199 as a symbol that cheap people are shopping the App Store -- as if anyone who's interested in spending $199 on a phone can be called cheap. But he's starting from the right place: from AppCubby's donationware scheme (they sell apps for 99 cents and ask people to donate more on their site) to the Sound Grenade developer (he made a self-described "terrible" app in 20 minutes and threw it up on the App Store -- only to get hundreds of thousands of downloads), something is very weird in the world of apps for the iPhone and iPod touch.

Moren's final point seems to be that an excess of 99 cent apps is pushing the really talented developers out of business (because they can't make back what they put into the software by selling it for 99 cents), but there's still something wrong there. If someone can sell 100,000 copies of an app for a buck apiece (walking away with $70,000 after Apple's cut), why are the talented developers leaving? Surely you can make a quality app for less than $70,000, right?

We're obviously still closer to the beginning of how the App Store will eventually shape up rather than the end. It sure seems like developers who create worthwhile apps would find a way to pay for them, but if they can't, then yes, it might be worth another look at the pricing setup from Apple end.

Tags: 99-cent, app-store, appcubby, apps, developers, interview, iphone, macworld, payday, pricing, sound-grenade

Filed under: Analysis / Opinion, iTS, Odds and ends, Apple Financial, Internet, iTunes, Apple

Record companies happy with new iTunes pricing (duh)

by Mike Schramm (RSS feed) on Jan 15th, 2009

You knew this was coming. The iTunes pricing changes announced at Macworld got groans from most of us watching (even though I'm pretty sure it's more or less agreed that it had to happen sooner or later), but the record companies are taking time to do a little bit of gloating over the fact that they've finally broken through Apple's 99 cent barrier. They told the AP that the move means that customers aren't "price sensitive" -- in other words, we're OK with paying more for music.

I don't know that that's true -- iTunes has had 99 cent songs since its inception, and even with the record companies crying and whining the whole time, it's been an amazing success. But prices go up eventually, no matter what product you're talking about, and if Apple had to raise prices, they could do a lot worse than adding a tier above and a tier below. Of course the record companies will want to put anything that sells on the top tier, but I don't think they can use that as evidence that consumers don't care what price they pay for music.

And let's keep in mind that at $1.29 a song, a 10-song album at $12.99 is still cheaper than the $16 and $17 record companies used to try and charge. There's no question about it -- this latest change is one in favor of the record companies, but a system like iTunes still seems worlds better for consumers than the old Sam Goody/Tower Records retail store system.

[via MacBytes]

Tags: apple, downloadable-music, itunes, itunes-plus, music, prices, pricing, record-company

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