App Store Pricing Adjusts for Competition

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."