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How Micro-Transactions Will Shake Up iPhone

Spanner Spencer writes "Talk to iPhone games developers, and the feature they're most excited about in the new iPhone 3.0 software is the ability to do in-game micro-transactions. And while you might wonder if this is just an excuse to get iPhone gamers to dip into their wallets even more often, it's actually a hugely positive thing for several reasons. Downloadable content, virtual items, subscription billing and fast-track social advancement are some of them, so Pocket Gamer looks into a bit more depth about what you can expect on the micro-payments side once iPhone 3.0 debuts."

28 of 148 comments (clear)

  1. Re:Looks like attack of the shill by Culture20 · · Score: 5, Funny

    Fuck iphone.

    There's an app for that!

  2. Huh. by fuzzyfuzzyfungus · · Score: 5, Insightful

    Why do none of those "hugely positive things" sound hugely positive, or even positive at all? Am I a bad, bad failure of a consumer, whose mere existence is dragging our economy down, or are the writers of TFA a bunch of koolaid-drinking frigtards who are cheerleading the advance of some of the worst aspects of traditional phone service into the realm of applications?

    Probably no need to answer that.

    1. Re:Huh. by eln · · Score: 4, Insightful

      It's hugely positive for the business types who keep pushing micropayments as the thing that will save the Internet, despite the fact that they've been tried several times before and have been a dismal failure. Since iPhone users tend to be used to shelling out small amounts of money frequently anyway with iTunes and the App store, it might be more successful there than it ever could be on the Internet at large, but it's not a positive development for the consumer no matter how you slice it.

    2. Re:Huh. by EastCoastSurfer · · Score: 3, Insightful

      It's positive for a couple reasons. First, the consumer gets more choice about the premium content they want to buy. Sorta like buying individual cable channels as opposed to packages. Second, the developer now has more options on how to sell said content. They may be able to take more chances offering small pieces of content to determine a market prior to offering a full package. In general, I think more choice is always a good thing.

      Don't think of the free apps going away, but instead you having more options on potentially buying some of the paid for apps.

    3. Re:Huh. by internerdj · · Score: 4, Insightful

      So long as I'm getting reasonable stuff for my $X that is fine but when they realize that people will pay $0.0x for little bits there are a handful of things that will charge $X for the initial app with $0.0x * 20 to actually do anything useful with the app. While I don't have an iPhone, I dread the day when I have to wander around Tamriel stark naked because I refuse to pay real money for a suit of virtual armor.

    4. Re:Huh. by ionix5891 · · Score: 4, Insightful

      positive, choice, premium, packages, options ,content, offering, market

        wow did that just read like a marketing spiel

    5. Re:Huh. by Renderer+of+Evil · · Score: 5, Insightful

      ...but it's not a positive development for the consumer no matter how you slice it.

      I disagree, and here's why.

      In-game, in-app transactions free up developers to provide applications which are modular and go beyond widgetizing the phone with bunch of buttons. For example, instead of releasing 10 different apps for language instruction and ranking somewhere in the 10,000's on the list of downloaded apps, you could just make one well-designed app and then provide language packs for a fee. Currently there are lots of single-purpose apps from the same company localized to fit a specific language. This is bad for the developers because they don't have a chance to reach critical mass on the platform since their offerings are balkanized - Spanish, French, and German versions are all competing against one another and other similar apps. Their combined total downloads would propel them to the top but since these are treated and sold as separate apps you lose exposure.

      This would also do away with "LITE" applications and get you the real thing where you could purchase the full game after playing the demo level. It's really a redundant step to download iFighter Lite (an awesome game!) and then go back and purchase the full iFighter game. The in-game transaction saves you the step of going through delete > re-download > sync steps and puts you back into action.

      Will some developers abuse this by releasing shitty content? Absolutely. But the market will sort these out in time.

  3. I hope it's clearly marked and confirmed by Paul+Carver · · Score: 3, Insightful

    I like my iPhone and I have 70+ apps installed but most of them are free apps that I'd live without if I had to pay for them. Only a dozen or so are paid apps that I actively tell people "you should get this, it's outstanding". I've paid for a couple of games but I would be really upset if I "accidentally" purchased something even if it's only a couple of dollars.

    I hope Apple makes very sure that "micro-transactions" don't let developers try to keep slipping their fingers into my wallet quietly.

    1. Re:I hope it's clearly marked and confirmed by fuzzyfuzzyfungus · · Score: 5, Funny

      It isn't "slipping their fingers into my wallet quietly" it's "Enabling premium content acquisition seamlessly"...

    2. Re:I hope it's clearly marked and confirmed by tepples · · Score: 5, Informative

      I hope Apple makes very sure that "micro-transactions" don't let developers try to keep slipping their fingers into my wallet quietly.

      As I understand it, $0.00 apps can't call the microtransaction API. That's why you can't buy new books in Amazon's Kindle app; you have to close it and open Safari.

    3. Re:I hope it's clearly marked and confirmed by alvinrod · · Score: 3, Interesting

      It would be fairly trivial to get around this restriction. Just sell at $10 version of the Kindle app that gives you $10 store credit towards your first purchase. Of course people might balk at the $10 initial cost, so it may be more effective to sell it for $1, or whatever Apple has set as the minimum cost.

      If you're going to be making a considerable amount of micro-transactions, the initial cost is probably worth the added convenience. Of course, Apple could always make exceptions as it may have done in the past.

    4. Re:I hope it's clearly marked and confirmed by tattood · · Score: 5, Informative

      I hope Apple makes very sure that "micro-transactions" don't let developers try to keep slipping their fingers into my wallet quietly.

      Yes, it is very clearly marked with a popup window that asks you "Do you want to purchase (insert item here) for (insert price here)" window that you have to confirm or deny. They showed an example of this in the 3.0 press conference when they announced it.

      --
      WTB [sig], PST!!!
  4. Social Pyramid Games by Culture20 · · Score: 4, Insightful

    So now all those Pyramid Scheme style games (Mafias, Ninjas, Vampires, Knights) can be real Pyramid schemes, with Microtransactions filling in the $$$ glue?

    1. Re:Social Pyramid Games by Krneki · · Score: 5, Funny

      Hmm, that gives me an idea.
      How about a Nigerian adventure game, where you have to pay every time you make some progress toward your 10M$ reward.

      --
      Love many, trust a few, do harm to none.
  5. Re:Looks like attack of the shill by Anonymous Coward · · Score: 4, Funny

    Yeah, but it was never approved by Apple...

  6. Positive? by Millennium · · Score: 4, Insightful

    And while you might wonder if this is just an excuse to get iPhone gamers to dip into their wallets even more often, it's actually a hugely positive thing for several reasons. Downloadable content, virtual items, subscription billing and fast-track social advancement are some of them...

    Um, in what way are any of these things positive? I look at these things and see only scams: more ways to nickel-and-dime gamers to death.

  7. Re:Looks like attack of the shill by ionix5891 · · Score: 4, Funny

    iFuck?

  8. This will end badly by MacAnkka · · Score: 4, Insightful

    These micro transactions have some ok poential uses, but some of the uses are just down-right silly. Like that FPS game Apple demoed, where you can pay some tens of cents to get a rocket launcher to get an advantage. I, personally, can't wait to see the Slashdot story about a kid who racked up tens of thousands of dollars of debt with his parents credit card by trying to be the best on a silly FPS server.

    1. Re:This will end badly by tattood · · Score: 4, Insightful

      That's why the parent doesn't give the kid the full access to the credit card. They buy him the iTunes gift cards in pre-determined amounts. The kid gets $20 worth of music/apps/in-game-credits, and once they have been spent, there are no more until the next birthday/etc. You hear the same story about kids racking up thousand dollar cell phone bills from sending 500 text messages a day. If you give your kid a toy that requires payment to use, YOU, the parent, need to control how much can be spent on it.

      --
      WTB [sig], PST!!!
  9. Takes me back by Norsefire · · Score: 4, Interesting

    You are out of lives.

    Pay 20c to continue.

  10. Abuse? by TinBromide · · Score: 3, Interesting

    How long until we start seeing "lite" apps with all the buttons, but there's a tiny bit of text at the bottom "If you would like to click this button, you agree to pay $.25". /tinfoilhat

    Back to reality though, I really like that the iphone app store was once a place where dev's could make a halfway decent program based on a really cool idea and make money as a reward. It also felt like the golden days of the old shareware scene before it got stale and people started depending on it and expecting it to pay their bills. While I have yet to pay for an app on the itouch, there are a few I might have if I had an iphone with it's mobile connection and gps (the geocaching app would be the first on my list).

    However, I really don't like the idea of a microtransaction for iphone gaming. I think that the microtransaction system in gaming implies that someone has a heavy emotional attachment to the game and the majority of microtransaction items are prestige items. In order for those two criteria to work, you need two criteria: A game that someone will play for more than a few hours before buying another $1.00 game and persistent multiplayer. I.E. Why buy a coat for a character that you will play on a plane flight and never again? Especially if the only way that people will see it is if you show them the character on your iphone. ("Oh, that's nice, you paid extra for him to be lime green!"). By the way, if you're thinking of buying extra levels, how many labyrinth lite instances have you seen on iphones? How many full versions? The only difference is more levels, but I haven't met anybody that felt the need to buy more levels for a novelty game.

    That and the other major types of apps that i've seen IT and casual people use are information access type apps (urban spoon, website readers like for fmylife, directories, directions, recipes, etc) and resource access type apps (ssh, remote login, and other IT based monitoring/remote tools), nobody is going to pay a quarter every time they want to look up directions or login to thier server, and they'll probably just buy the full app and expense it or eat the cost for making their lives "easier". So the only thing I can see is a feature list a la carte, i.e. if you look at the list of features that differentiate a lite and full version of an app, and you only charge a small amount per feature, you might get more money in the long run due to people not wanting everything, but only picking out what suits them.

    --
    Is it sad that I am more likely to recognize you and your posts by your sig than your name or UID?
    1. Re:Abuse? by Tokerat · · Score: 3, Interesting

      I.E. Why buy a coat for a character that you will play on a plane flight and never again? Especially if the only way that people will see it is if you show them the character on your iphone. ("Oh, that's nice, you paid extra for him to be lime green!").

      One of two things will happen. Either people are dumb enough to do it and make it profitable, or game companies will find out quickly that it's the Apple App Store, not the PS3 Network where 12 year olds kick and scream until their parents let them download the MGS1 DLC Pack for LittleBigPlanet for $1.99.

      If you hear DLC and you think "Oh, that must mean they're going to sell minimal games and then charge for every little piece of the full game and that's it" then it's a good thing you're not a game developer, because your customers would buy your games exactly once and be done with you. Now, I'm sure we'll see this happen to SOME extent, but people aren't stupid - we don't like screens littered with advertisements, we don't like paying by the minute (even though you can't DO that very well with micropayments - it's not auto-pay you know) if there is a similar application that is a one-time purchase, and if you want us to subscribe to something it better be freakin' phenomenal.

      --
      CAn'T CompreHend SARcaSm?
  11. The case for micropayments by SuperKendall · · Score: 5, Insightful

    A lot of people here can see no good from micropayments.

    However, it allows the developer to make the initial game much cheaper, and thus gives you more of an ability to try a game for less - essentially you could replace the lite/full version with a single version that let you buy more levels.

    Then as a gamer, if you liked it you could buy the rest of the game... or perhaps mid game you could decide the level design had gone to pot and buy no more.

    in-game payments is just a tool, and like any tool it can be abused - but that does not mean the tool should not exist and cannot be helpful. In the end the companies that treat the consumer with respect will make the most of it.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  12. More like by liquiddark · · Score: 4, Funny

    iDontFuckPleaseHelpMe

  13. This is NOT a bad thing. by Tokerat · · Score: 5, Insightful

    1. You are warned everytime an App charges you. I don't understand the people acting like "micropayments" means "happens automatically without your knowledge".

    2. If you don't like the payment model a certain App uses, vote with your wallet. Stop using it. Developers are only going to make money nickel-and-diming you all if you LET THEM.

    3. Free Apps will not go away. It isn't like people said "Oh gee, I wish we could only charge $0.50 for this. I guess we'll give it away instead of making any money". Those Apps are free because whoever made them had the ability and desire to release them that way.

    So, calm the fuck down.

    --
    CAn'T CompreHend SARcaSm?
  14. Isn't this going backwards? by webdog314 · · Score: 3, Informative

    I thought the whole point about the App Store was that you could BUY an app (as in, ONCE). This is very different than services such as Verizon's Get It Now, which allows you to get a SUBSCRIPTION to an app that you will pay for again and again each month for as long as you own the phone (or cancel the subscription). I understand about being able to "try" something to see if it's worth sticking with, but come on, most apps for the iPhone are a buck or two. You pick up a dozen for the cost of lunch. And how long is it going to be before the average "micropayment" starts creeping up to near what the greater percentage of apps cost now (.99)? Poof! You're Verizon again.

  15. Re:The more things change... by Norsefire · · Score: 3, Interesting

    MMOs make you pay regardless of if you die or not.

  16. a rose by any other name by AnAdventurer · · Score: 3, Insightful

    Suppliers call it "micro payments", Savy consumers call it being "nickle and dimed".

    --
    6.8SPC TR of 550, l xwind at 6, drift rt at 26" drops 77". AT has 503 ft-lbs at 1403 fps. FT 0.86