A lot of things have been written and said about the emergence of the mobile game industry. Over the last decade, the mobile gaming industry has grown and developed and developers have responded to this growth by leveraging technology available to improve the offerings to the players, ensuring they create the best possible experience for their patrons, and as a means to compete in an increasingly saturated market. If you are a new mobile gamer and eager to know things in detail then here we will talk about the different payment strategies mobile game developers use.
Payment strategies of mobile game developers
There are three types of business models that mobile game developers follow as their payment strategies.
1. One-Time Payment
There are some mobile game developers who focus on making their mobile game exclusive to their audience. Therefore, they offer the app with only one-time payment without any hidden charges. In other words, one-time payments relate to premium paid apps, essentially meaning users get your game for an upfront price. Those games have a specific audience who want to enjoy everything without paying individually for each feature. For developers, this means that for each app download they will get a particular amount which they can further use to build or update the app.
2. Ad Monetization
Ad monetization is also like in-app transactions and offers a more recurring revenue stream for the developers. Developers in the Hyper-casual genre are excessively using this mode for revenue generation. Here, the player doesn’t pay anything to the developer, but he/she has to watch a video for a specific time period.
Earlier, players were reporting ad monetization to be very irritating but with the advent of technology, it has become very smooth. Now, players can be targeted with more personalised adverts relating to the games that they play and download.
3. Freemium Gaming
With mobile gaming being a highly competitive market, mobile developers had to think of a different strategy to target new players to try out their games. This led to the development of freemium gaming. Freemium gaming allows players to be able to play free versions of the game without spending any money. This was a huge hit with players who wanted to try games before they purchased the full version, to make sure that the game was right for them.
The gambling industry has utilized this method by allowing players to try playing games in a free version before depositing their own money. Casumo casino app has developed in-app games that can be played for free with games like online slots offering free spins to players.
The benefits of freemium gaming is that there is a chance the player will want to purchase the full version of the game or play mini games where they do deposit their own money like for casino games. The free games allow the player to try before they buy and most developers hope to impress their players so they want to return back for more!
4. In-App Transaction
The in-app purchases are also known as micro-transactions. In-app purchases offer a more recurring revenue stream for the developers. Therefore, results in increasing user engagement, platform experience, and in-game earnings. In-app transactions are done by those developers who want their audience to use the app and pay only for those specific features they use. In the last decade, we have seen a lot of developers going for the IAP revenue model. The current successful example of a mobile game in this category is Genshin Impact, as it won the app store game of the year award 2020.
So these were all the techniques and payment strategies that mobile game developers and publishers apply from time to time depending on the scenario. Always keep it in mind to start wisely and use the best fit strategy depending on your case scenario.
What do you think about the payment strategies of mobile game developers and publishers? Let us know in the comment section!