How do mobile games make money?
FREE, WITH IN-APP-PURCHASES (IAPs) — Most common, and lucrative, model. Distributing a free, entirely open-access game attracts players to download. Once hooked, IAPs (‘Gold’, ‘Power-Ups’ or ‘Continue Playing’ passes) offer tantalising chances to skip ahead or enhance the playing experience.
FREEMIUM — Subtly different to the above, Freemium apps involve some form of ‘upgrade’, perhaps to unlock exclusive levels. Non-game apps, particularly media providers, often use this model in the form of a ‘paywall’ protecting premium content.
FREE, WITH ADVERTISING / SPONSORSHIP — Completely free to play. The 1 billion hours a month we spend playing mobile games is of huge interest to advertisers, who’ll pay big money for exposure. Some brands have started going even further, sponsoring whole games to get the reach the eyeballs they require.
PAID / PREMIUM — Pay your money, get your game. The old fashioned way. Parents, many of whom have decried IAPs as honey-traps, rejoice at this model. Minecraft, for example, is a global children’s smash hit, and can be purchased once and played almost infinitely.
