Introduction:
Pricing your mobile game is a crucial aspect of its success. It’s not just about generating revenue; it also plays a significant role in determining the target audience and the overall perception of the game. In this guide, we will explore various pricing strategies, analyze their pros and cons, and provide real-life examples to help game developers make informed decisions.
Free-to-play (FTP) vs. Paid Games:
Before diving into pricing strategies, it’s essential to understand the difference between FTP and paid games. FTP games rely on in-app purchases or ads for revenue, while paid games require users to purchase the game upfront. Both models have their advantages and disadvantages.
FTP Games:
Pros:
- Wider reach: FTP games can attract a larger audience as they are free to download.
- Higher engagement: Users are more likely to engage with FTP games as they don’t need to spend money upfront.
- Recurring revenue: FTP games can generate recurring revenue through in-app purchases and ads.
Cons:
Pros:
- Lower revenue per user (RPU): FTP games often have lower RPU due to the large number of users who don’t make in-app purchases or watch ads.
- Quality vs. quantity: FTP games may struggle to maintain high-quality content and features due to the need for recurring revenue.
- Dependence on user behavior: FTP games rely heavily on user behavior, which can be unpredictable.
Paid Games:
Pros:
- Higher RPU: Paid games often have higher RPU as users are more likely to make a purchase upfront.
- Predictable revenue: Paid games provide game developers with a predictable revenue stream.
- More control over content and features: Paid games give game developers more control over the content and features of their game.
Cons:
Pros:
- Smaller reach: Paid games have a smaller reach as they require users to spend money upfront.
- Lower engagement: Users may be less likely to engage with paid games as they need to spend money upfront.
- Limited monetization opportunities: Paid games may have limited monetization opportunities beyond the initial purchase.
Pricing Strategies:
Now that we understand the difference between FTP and paid games, let’s explore various pricing strategies game developers can use to price their mobile game.
1. Penny for Tricks (PFT):
PFT is a popular pricing strategy used in FTP games. It involves charging users a small amount of money (usually $0.99) for a limited number of in-game currency or items. The idea is to make the purchase seem insignificant, but it can still generate revenue and encourage users to engage with the game more frequently.
2. Freemium Model:
The freemium model involves offering a basic version of the game for free, while charging users for additional features or content. This model works well for games that have a large user base and can generate revenue through in-app purchases or ads.
3. Pay-to-Win (P2W):
P2W is a controversial pricing strategy where users must spend money to advance through the game or access certain features. While it can be effective in generating revenue, it may not be well received by users and can lead to negative reviews.
4. Subscription Model:
The subscription model involves charging users a recurring fee for access to the game’s content and features. This model works well for games with a loyal user base and predictable revenue streams.
5. Tiered Pricing:
Tiered pricing involves offering different levels of the game or its features at different price points. This strategy can be effective in generating revenue from users who are willing to pay more for additional content or features.
Case Studies:
Now let’s look at some real-life examples of successful mobile games that have used various pricing strategies.
