Depending on the model used when developing a game, in-app purchasing options can make or break a company and a person’s patience. According to statista, there have been more than 75 billion apps downloaded from the application store alone. 93 billion apps downloaded are free mobile app downloads. Of those applications that were downloaded, nearly 20% fall within the category of gaming. With such a huge market out there, the need to make a free app and add in what is called an “in-app purchase” is a must in order for business to make money.

Since the development of coin slot arcade machines, children would spend time watching the preview of a game before dropping a couple of hard earned quarters they made from either walking a dog or mowing the lawn in the arcade game’s coin slot. Once the game has hooked the player to the point of climax, the dreaded countdown to your time running out begins. Do you put in another quarter, or do you move on to another game? If the creators who created the game did it correctly, the user’s quarters would be dropping into their game vs the arcade game next to it. As the next step of affordable “at home” video games were created and the arrival of internet gaming through computers, the idea of additional costs associated with gameplay began to rise. As stated in a destructoid.com article “Arcades, where have you gone?”, less people piling in to arcades have increased the overall cost to play one game. Some stemming into $1.50 per play.

With the internet, games that were sold at a cheap price such as World of Warcraft made a huge appearance. This game was a lot different from other computer games for the reason that not only did you have to buy the game, but you also had to pay a monthly subscription to use the game. This monthly subscription brings you onto servers where you are able to take on other players or join them in battles. Ultimately, you are paying to interact with other real life players. PCWorld states,

“World of Warcraft was by no means the first MMO, but it was the game that perfected the rules and the experience, with a richly detailed, persistent universe for players to explore, and constant expansions ensuring that their characters would continue to grow and change as the game aged.”

This can only be done using servers which you would have to pay a monthly subscription for.

Xbox and PlayStation arrived on the gaming scene and now you are able to play with or against other players on your television. These types of video gaming systems began with a monthly subscription as well. The next step taken by video gaming systems was to sell extra content to games such as maps or weapons.

The invention of the IPhone introduced a whole other type of gaming platform with applications. Applications became popular due to the price being very cheap if not free and the ease of game-play. Apps then took on the concept like every other type of gaming system as with in-app purchases. People pay a little extra money depending on the type of game to either gain extra lives, gain an extra level, or speed up some type of building process. There are hundreds of thousands of applications on the market today and more coming every minute. Applications today have a lot more competition than those of arcade games. In the book, How to Start a Home-based Mobile App Developer Business by Chad Irooks, in-app purchases are set to a price point where users don’t feel they are paying a large price, but must also feel like they are getting something out of it. This theory would make it easier for users to decide to spend their money again on that application.

In-app purchases have become the engine behind the gas pedal in application development. To be successful in using these types of purchases, a developer has to know how much they can cattle herd their customer. A good game that plays on their customer’s patience will lead to high profits and success of a company.

In app purchases are a lot like the old coin slot operating video games in many ways. Unlocking new levels, continuing a game when all of your lives have run out, getting your name in the top spots for high score for everyone to see. There is something to considered when you are about to make an in-app purchase from a buyers perspective; Is it really worth shelling out money to help you along in your path to becoming a master at your game? If you answer no, you should stay away from it. A lot of app games out there have time limits set for the length of time that you can play. A lot of people will spend their money to just speed up the time. I have not found a game out there yet that would have me make that type of purchase. I would rather wait until lives have replenished vs. paying to continue to play at that moment. Here is a tip, put the gaming device down and find something else to do while you wait.

In-app purchases are not a new and exciting concept. This type of thought process on playing with a person’s patience can be seen everywhere from business deals to games at a carnival. I think in-app purchases are in interesting subject because it is all about mind games. From a developers standpoint, do you have a game that will capture people’s attention? How can you keep their attention vs. giving up when the going gets tough? From a players perspective you look at how many times do you want to attempt a level before you give up? How can you quickly get to the top without taking so much time? There is a balancing act that has to happen for a game to be successful. I am a gamer myself, I have purchased “in-app” items to help advance me in a game. With the continuing rise of applications, In-App purchases will continue to be the revenue developers will need to survive.