In an effort to push HTML5 app development, AT&T has released a new application programming interface (API) platform containing APIs for SMS, MMS, mobile-health, and location, as well as other tools to entice HTML5’s appeal.
New API Platform for HTML5 - In Game Purchase Revenue Predictions (Page 2 of 2 )
Report: In-Game Purchase Revenues Predicted to Reach $4.8 Billion in 2016
Juniper Research, a firm that specializes in research and analysis for clients in the hi-tech communications sector worldwide, recently released a report offering details and projections on the mobile gaming market from 2011 to 2016. Highlighting the report’s findings is a projection of mobile in-game purchase revenue hitting the $4.8 billion mark in 2016.
Mobile in-game purchase revenue amounted to $2.1 billion in 2011. While that is impressive, it pales in comparison to the $4.8 billion projection for 2016. Juniper feels the jump in revenue will be driven by a few different factors. First, the sharp increase in smartphone adoption by consumers is a major factor that should boost in-game sales. Smartphones offering increased performance, design, and functionality are hitting shelves at a rapid pace, and consumers are snatching them up equally as fast. The more smartphones you have in consumers’ hands, the more exposure and opportunities for sales to occur.
Another major factor driving in-game purchase popularity is what is described as the “freemium” model. This model essentially offers a product, such as a game in this case, as a free download. If a user wishes to access any of the advanced features, they must pay a premium to do so. The model is less risky for consumers, and allows developers to offer a taste of their product at the same time. As more consumers gain a comfort level with the freemium model, downloads should increase, as should eventual in-game purchases. Juniper lists games in the Social and Casual genres as the ones that will account for the majority of mobile games downloads, since their audience will likely demand gameplay that is more immersive in nature.
The final factor behind the in-game purchase boom is developer adoption of the freemium model. Free games often garner more downloads than their pay-per-download counterparts, which provides developers with a wider audience. Piracy is also reduced with free games, since they can be initially downloaded at no cost. If a user wants to make an in-game purchase at a later date, it must be done through the developer’s server. Charlotte Miller, author of the Juniper report, described the appeal of the freemium model to developers: “An increasing number of games developers are finding the in-game purchase model attractive simply because it provides easy answers. Their piracy rate will drop and the game will see more downloads. However, while some games may generate significant revenues from in-game items, the model doesn't work with all games and developers have to tread a fine line between encouraging purchases and appearing to be exploitative.”
Juniper’s report also offered other projections for the mobile gaming market. It projects mobile games revenue on feature phones to be cut in half over the next five years. Juniper sees tablets as a major player in the realm of mobile gaming as well, with the devices accounting for at least a third of mobile games revenues by the time 2016 rolls around.
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