The way game developers make their money has changed quite a bit over the past several years. There was a day when you would just purchase a video game and then play the whole thing until you either got tired of it, beat it, or wore it out. Nowadays we have access to so many mobile games on our phones and tablets that don’t ask for any money up front. Somehow, though, these “Freemium” games end up being the ones that make the most money every year. How is that?
If you have spent any time playing these games you have experienced it yourself. You download a game that looks awesome in the commercial and in the app store. You get started and enjoy the gameplay right away. Soon, however, you seem to stall out a bit, or you’re playing in an open world with other real people and they all seem to be way ahead of you and are destroying your village or blowing you away on the scoreboard. What’s a gamer to do? Never fear, the premium game designers built in a way for you to get a boost to your game score or a new way to skip the long wait to let your in-game work get done so you can collect your reward. All you have to do is spend a few bucks here and there and you can play the game non-stop without any delay. This is how Freemium games make their way to the top of the money makers list. Here’s a screenshot of Statista’s top ten of 2016 list.
Every game in that top ten list is free to download. Note that the amounts listed are daily revenue. These are dollars made from people who have decided to spend little bits of money here and there to help themselves play these games a little faster or a little better. The top game, Clash Royale, is one where you battle against friends with an army you have built. You have to use gems to build your army so you must either spend money to build your army faster or play a lot and wait for your “chests” to open and give you new soldiers (in the form of cards). Pokemon Go comes in at number two. This one will allow you to keep trying to “catch ’em all” by buying new Pokeballs when you’ve run out. Finally, numbers three and four are Game of War – Fire Age and Mobile Strike. These two games are often advertised on television and have received much criticism about the gameplay in their product being a lot different what they’ve portrayed it to be. For some, the promise of better gameplay causes them to spend money in hopes to gain more levels faster. It’s a new way to do mobile games and has even trickled into the console and computer game markets.
It’s called DLC and stands for Downloadable Content. This is new features and game content that gamers can spend more money on to enhance gameplay or keep the story of the game going. Obviously, the success of the in-app purchases in mobile games has inspired other game developers to use this model to increase the profitability of their product. The largest difference is that you still have to purchase for the initial version of most console and computer games. As you see below on the screenshot from ThinkGaming.com, the first pay up front mobile game on the top grossing list is Minecraft Pocket Edition at number 35.
What Parents Should Know.
Obviously you should know that nothing is truly free. Our kids should understand that too. As I explored in more depth in our Mobile Device Vocabulary Series, there have been instances of parents finding out their kids have made very large in-app purchases without permission. There are ways to protect your accounts from money being spent unintentionally. Make sure your app store account asks for a password every time you make a purchase. If you have Apple products, set up your icloud accounts with family share so you can see what apps your kids have and make them ask permission to download anything new. Also, be sure to discuss with your children that sometimes their favorite games ask for real money. Teach them that they should ask you before agreeing to buy anything “in-game.” You don’t want a surprize charge on your credit card. While iTunes and GooglePlay have pretty good track records of refunding purchases, it’s a hassle I’m sure you’d like to avoid.