Did you know – half of all gaming revenue comes from 0.19% of mobile gamers


According to a gaming monetization report by Swrve, half of the revenue generated by free-to-play games comes from just 0.19% of mobile gamers out there. To put things in perspective, in-app gaming purchases are expected to top $1.9 billion by the end of 2016, which means that around half of this figure (nearly $900 million) will come from less than 1% of the number of mobile gamers. What's up with that? The report suggests this has something to do with the critical importance of the first day an app is installed for revenue. Their metrics claim 59% of the first purchases in a freemium app are made on the first day, resulting in a massive 55.5% of the app’s total revenue being generated on the very same day.

Although some 56% of first-time payers go on to make another purchase in the next two weeks, Swrve's report maintains that the freemium model makes the bulk of its revenue on day one. So if you haven’t purchased anything on the first day of installing, the likelihood of doing so drops significantly over the first 72 hours. With over half the revenue coming in on day one, day two revenue drops dramatically to 14%, and to just 4.5% on day three. Thus, a freemium game is poised to make 70% of its money in the first 48 hours of its life, coming from just 0.19% of all players.

The report shows only 1.9% of players will probably make an in-app purchase in a month, meaning the vast majority of players deliver zero revenue to freemium game developers. But with the average monthly spend of said 1.9% of players being $24.66, based on an average of 1.8 purchases per month and an average individual purchase value of $13.82, even this miniscule percentage proves sustainable for game makers.

source: Swrve via Android Authority

Also read:


FEATURED VIDEO

19 Comments

1. Mrinal

Posts: 36; Member since: Feb 28, 2016

I never waste money on games! ;)

3. Adreno

Posts: 755; Member since: Mar 12, 2016

It's because the fremium games are a total rip-off. A game which costs no more than $30 in the pay-per-download category, will end up costing hundreds and even thousands of bucks in the "fremium" category due to in-app purchases to upgrade stuffs. I prefer to puchase my games outright. I have fremium stuffs!

11. AlikMalix unregistered

I agree, the rediculous $99 IAP only gives you so little - usually no more than what you'll get in a couple of weeks in some bonuses. And to significantly progress you'll need more than that. I rate mobile apps against console ones - if a console game costs $40 and a game is about 10% of entertainment or depth of the like game on console - they get about $4. Ironically the best games I got: RR3, AfterPulse, CarX Drifitng - are easily enjoyable without the need to spend money. But I support 'em anyway. AfterPulse will get about $20 from me this year - that game is awesome - I usually drop an extra $5 when they add features or new modes or items in with an update - continuous support is highly appreciated. AfterPulse just added a middle eastern map - and that thing is really awesome, well worth the extra $5.

13. downphoenix

Posts: 3165; Member since: Jun 19, 2010

I dont mind low cost freemium purchases, I won't spend more than $5 myself on a freemium purchase, but I am not averse to it. The primary ones I would do are ones that remove ads or stuff like that, and only if it's a game I really enjoy and am playing a lot.

2. Arschsalat

Posts: 158; Member since: Feb 29, 2016

Yeah i know it from Android Authority 2 Days ago.

4. artificialintelligence

Posts: 166; Member since: Dec 05, 2015

Clash of clans and asphalt 8 the top fremuim games that can't get enough of your money but if you think about it it's a smart strategy from developers due to the mass amounts of torrents but it's not an excuse to charge $99 for a coin pack developers are getting too greedy these days

5. Adreno

Posts: 755; Member since: Mar 12, 2016

That's the reason why I side-load certain games with such greediness, hack it and play with unlimited coins. But games which, for a coin pack or for an upgrade, do ask prices which I deem fair enough, I pay for it.

10. medicci37

Posts: 1361; Member since: Nov 19, 2011

I think gamelofts sniper fury game just took the crown from Asphalt 8 as the most expensive freemium game. For instance, I can easily earn 150k worth of game dollars playing off & on for a couple hours. If I were to purchase the 150k, even after 50% savings it would cost me $99.99 ! Are you F*cking serious Gameloft?

14. downphoenix

Posts: 3165; Member since: Jun 19, 2010

either you are pretty good at the game and thus can easily milk it, or Gameloft screwed up the payment model of that game hard.

15. Adreno

Posts: 755; Member since: Mar 12, 2016

@downphoenix I edit the C++ codes and replace certain files with custom-made ones. Then I use Lucky Patcher to remove adds. I'm a software engineer, bruh. I have many greedy games like Real Racing 3, Asphalt 7, etc... hacked, and with unlimited everything.

6. ph00ny

Posts: 2031; Member since: May 26, 2011

Ton of folks are P2W in games like Zenonia S spending hundreds if not thousands of dollars to be just slightly better for a few days until they reach the cap

7. Dude2014

Posts: 448; Member since: Feb 12, 2014

Mobile games?? Meh ..only only gamer wannabe noobs play them. lel

17. NonFanBoy

Posts: 180; Member since: May 28, 2015

And "real gamers" like you carry around your PS/ X Box/ PC wherever you go.

8. Settings

Posts: 2943; Member since: Jul 02, 2014

Players are complaining a $23 game like Final Fantasy IX is a rip off while they tend to spend over a $100 on a game with IAPs yet they still do what they do on their first 24hrs of the game. The best paid apps have endings, it has a sense of gratification, an accomplishment. Its what a true game game is.

9. avalon2105

Posts: 352; Member since: Jul 12, 2014

I remember people saying that Final Fantasy VI (one of the best games ever) is too expensive at 16$, yet are okay with spending more than that on c**p with IAP. That is when I realized why console and PC gamers look on mobile games/gamers with disdain.

12. GTNavy

Posts: 55; Member since: Oct 13, 2014

Mobile games Will never replace console and PC gaming. You'll never see the next Fallout or the latest Call of Duty released on Android or iOS first. Mobile GPUs are 10 years behind PC. That's why they released the GTA games on mobile on the 10th anniversary. Mobile chips are at PS3/Xbox 360 level now.

16. mixedfish

Posts: 1555; Member since: Nov 17, 2013

It's all those fat whales that pay for that stuff.

18. justrt

Posts: 446; Member since: Jul 10, 2014

The Illuminati of gaming :p

19. insanity99

Posts: 104; Member since: Feb 28, 2015

Chaos rings 1, 2 and 3(Waiting for 4) Final Fantasy 9(Not done yet) Can someone recommend me some good RPG games like the one I mentioned?

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.