App Store Pricing Adjusts for Competition
posted July 24th, 2008 11:22 AM EDT by arn in News
Forbes reports that iPhone developers are already making pricing adjustments based on competition within the App Store.
Earlier this week, Gameloft dropped the price of three of its six iPhone games [App Store]. Prices on their versions of Sudoku and Solitaire dropped from $7.99 to $3.99. Both Solitaire and Sudoku are highly competitive with dozens of each title available.
Developers can change prices with only a few hour delay and with no review required by Apple. Due to the highly competitive price points, however, developers are looking at ad-supported models to support their efforts. We previously touched on this possibility, but it appears to be a growing movement:
“A lot of agencies want to run ads on the iPhone,” says Jason Spero, vice president of marketing for AdMob. “We want to make sure we have enough places for them to run.”
July 24th, 2008 at 11:42 am
a lot of users DON’T want ads run on their iPhone. i’d rather pay for an app instead. hopefully developers will offer both options.
July 24th, 2008 at 12:13 pm
Ahhh, I love the fresh smell of capitalism at its finest in the morning. The best part of waking up, is capitalism in your land!
July 24th, 2008 at 12:16 pm
I don’t mind ads when I am online but if it makes it too ugly I will chose something else. Moreover, it better work when I am offline…since I am a touch user that happens quite a bit.
Both options would be the smart thing for developers to do.
July 24th, 2008 at 12:59 pm
I will not purchase a game if it is Ad supported. I hate having ugly ads on my nice games.
Scenario: Hi friend A, check out this new iPhone game. Oh wait, have to get through this ad crap. Waiting 1, 2, 3….. I promise, this is a really good game, just have a crappy looking screen filled with ad crap.
July 24th, 2008 at 1:13 pm
I would much prefer “in game” ads such as billboards on the tracks in Crash Bandicoot. Have them a part of the game and not in your face up front at the beginning.
July 24th, 2008 at 3:47 pm
Danno, I doubt advertisers would like billboards in-game, as the screen is too tiny for it to be effective, even if they are only interested in an improved brand recognition.
The only way I see ads being effective in iPhone games is if they are text ads, not image banner ads. Also, like many mentioned above, a paid version without ads and a free version with ads is the way to go. If not, it won’t see much success.
July 24th, 2008 at 4:01 pm
I don’t mind the cheaper prices. I assume the ads are going be like this: once the game starts an ad shows and before the game ends an ad will show. I think that’s how it’s going to be.
July 24th, 2008 at 4:20 pm
I don’t like the sound of advertising appearing in any apps. One of the things I love about OSX is that there is no advertising in any of Apple’s apps. I have seen little to no advertising in 3rd party apps as well. Safari doesn’t include a million annoying search bars and plug ins.
I’d hate to see the iPhone apps go down that path.
July 24th, 2008 at 5:22 pm
The underlying story that i find so amusing is the fact that NOONE looks at these stupid ad’s anyway. It’s a waste of time, space, resources.
July 25th, 2008 at 12:56 am
I refuse to buy an ad-supported app, period. That said, it’s high time that developers start adjusting prices - after that initial rush of being able to buy apps for the iPhone (and paying $9.99 a pop for the honor) I think a lot of people, myself included, are realizing that $9.99 and even $4.99 is a rip-off for a lot of these games.
July 25th, 2008 at 8:29 am
Tetris was first offered at a ridiculous $14.99.
July 25th, 2008 at 9:00 am
I’d still like to try apps out before i buy them - 5 day demo would work for me.
Not so sure i want ads in my games either, but will see how it goes. The key to me seems to be to offer low introductory prices to get people hooked and then have upgrade options for additional levels etc. I’ve learned a lot from the microstock photo biz (see my site if you’re curious - not trying to sell you something) where selling in high volume at low prices is an excellent way to earn.
July 25th, 2008 at 3:49 pm
Oh my! If you pay for a product you DO NOT receive adverts! Simple. Ad supported = free apps only.
Paid products are paid for, therefore do not require advertising to support their non existent free business model…….hey?
I’m a businessman, you simply cannot put ads on a paid for product without killing off your business. There will be those charging 10 cents more for an identical ad free ap.