Smartphones have already changed many aspects of the world we live in – there’s a good chance you are reading this article from a smartphone, for starters! With the always on nature of the internet, the smartphone means you can keep up with everything in the world at the swipe of a finger and removes the need for a big computer or awkward laptop. With the rise of the smartphone has come the rise of the app and with it, the development of in-app purchases which have changed the gaming world significantly.
Traditional vs online games
The gaming industry is often overlooked in terms of its income and profits until the last few years when investors have come to realize there is a lot of money in gaming. In fact, the revenues for games in 2015 hit $91 billion and the yearly growth rate exceeds even the film industry.
The growth of gaming has also been bolstered by the new mobile gaming model and the rise of in-app purchases. These are free to play games that offer tantalizing extras to players for small amounts of cash. These games don’t require the large outlays of money that a games console such as a PlayStation does and allows players to spend as much or as little as they like.
In app spending
And within a short time, people are spending plenty! Statistics show that next year the expected revenue from in-app purchases is going to hit around $37 million with this year already having seen a significant rise on 2015.
To put it into perspective, the total sales from paid app downloads is only projected to reach $29 million next year so this shows that people are more inclined to spend money on something that is free than to buy something up front.
The number of apps continues to grow as does their download numbers. Both Apple and Google currently offer over two million apps in their store. Many of these are games ranging from obsessive puzzle games such as Candy Crush to Royal Vegas online casino games and even the new eSports apps that take gameplay to a new, almost sports-like level.
Who spends the money?
Perhaps the most interesting fact in all of this is that only 1.9% of players actually spend real money on free games. However, this has increased from 1.5% in 2015 and shows that the incredible amount of money being made has a huge growth potential if app manufacturers can persuade more people to part with real world cash on online games.
This potential is a large part of the reason that Activision paid $5.9 billion for King Studios, creators of the ever-popular Candy Crush game and all of its subsidiaries. With the money being made by the game already and the huge potential for growth due to those low purchaser numbers, anyone with a great game can be looking to make a huge amount of money in this changed gaming world where in app purchases definitely look set to be king.