Why do devs bother with virtual goods?

Discussion in 'iOS Programming' started by TylerBetable, Aug 16, 2011.

  1. TylerBetable, Aug 16, 2011
    Last edited by a moderator: Aug 16, 2011

    TylerBetable macrumors newbie

    TylerBetable

    Joined:
    Aug 16, 2011
    #1
    I don't see why devs still bother with virtual goods. A lot of people have been chasing the virtual goods carrot recently, but are they still the best way for small developers to make a game?

    The problem with virtual goods is that you need millions of users in order to reach $1M in revenue, especially with free-to-paid conversion rates for most social games being in the single digits and average revenue per user (ARPU) often hovering around $1.
     
  2. troop231 macrumors 603

    Joined:
    Jan 20, 2010
    #2
    I like to develop to learn, however I would love to sell a million apps at .99 cents each, because that's $700,000 in the pocket. The odds of reaching that are better than the lottery IMO.
     
  3. ViviUO macrumors 6502

    Joined:
    Jul 4, 2009
    #3
    Because why not?

    Why not add the ability to potentially earn $5 per user instead of $1? There's no guarantee that a developer will make a lot of money from in-app purchases and visual goods, but there will ALWAYS be the possibility.

    Because of that, there is no point in debating it.
     
  4. TylerBetable thread starter macrumors newbie

    TylerBetable

    Joined:
    Aug 16, 2011
    #4
    I see. Well that doesn't mean that developers will ignore all new methods of monetization, right? I see what you are saying though, there's no reason to shortchange yourself when there is a tried-and-true method that works. Given this, do you think game devs would rather do something that's proven first, then worry about building out a new form of revenue that is untested?
     
  5. ArtOfWarfare macrumors 604

    ArtOfWarfare

    Joined:
    Nov 26, 2007
    #5
    I'd do whatever I thought would make me the most money without angering customers (because, in the long run, angering customers will just lead to the money drying up.)
     

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