Study: Half of In-App Purchases Come From Only 0.15% of Players

An anonymous reader writes "Have you ever seen a goofy microtransaction for a mobile game you play and wondered, 'Does anyone actually buy that junk?' As it turns out, few players actually do. A new study found that only 1.5% of players actually spend money on in-app purchases. Of those who do, more than 50% of the money is spent by the top 10%. 'Some game companies talk openly about the fact that they have whales, but others shy away from discussing them publicly. It costs money to develop and keep a game running, just like those fancy decorations and free drinks at a casino; whales, like gambling addicts, subsidize fun for everyone else.' Eric Johnson at Re/code says he talked to a game company who actually assigned an employee to one particular player who dropped $10,000 every month on in-app purchases." Meanwhile, in-app purchases have come to the attention of the European Commission, and they'll be discussing a set of standards for consumer rights at upcoming meetings. They say, 'Games advertised as "free" should not mislead consumers about the true costs involved.'

Comments

Re:0.15% vs 1.5%

[FuzzyDustBall]

1.5%* Top 10% is 0.15%... which is what the title is referring to. Please read full summary before ripping title.

$10,000?!?

[ackthpt]

Here I am, trying to sell the Golden Gate Bridge on the street and I could be selling it in a game.

I've got to get caught up on synergies of new technology, to coordinate my vision of business core-competencies with the emerging paradigm.

Re:$10,000?!?

[CanHasDIY]

Here I am, trying to sell the Golden Gate Bridge on the street and I could be selling it in a game.

I've got to get caught up on synergies of new technology, to coordinate my vision of business core-competencies with the emerging paradigm.

I was thinking the same thing; we should collaborate, make our own game that's nothing but microtransactions...

Re:0.15% vs 1.5%

[paiute]

Only 1.5% spend any money. 1 in 10 of those spend 50% of all the monies. So 0.15% spend 50%.

Were you told there would be no math? RTFS and DTFM.

A beluga good time

[Impy the Impiuos Imp]

"It costs money to develop and keep a game running, just like those fancy decorations and free drinks at a casino; whales, like gambling addicts, subsidize fun for everyone else.'"

Except video game players are more accurately described, than even casino players, as whales.

Rewarding the developer.

[galabar]

I've played games like "Path of Exile" where I've enjoyed the game so much, I decided to drop $20 or so on in-app purchases, even if they weren't going to actually help me advance in the game. I've done the same for other apps that I've enjoyed. If you enjoy the game, it can't hurt to reward the developer. Now, $10,000, well that is a bit extreme.

Re:The worst kind of human beings

[ackthpt]

A person who spend 10,000$ a month on a game has a problem and someone who's trying to exploit someone's problem in order to become rich is nothing but a thief. The man behind that company should be put behind bars.

The problem they have is they have too much money and have yet to find e very, very good friend like me, to like, help them find fun and exciting ways to spend it.

Re:0.15% vs 1.5%

[jrumney]

I downloaded that game for my kids when it first came out. I promptly deleted it when I realised how much nagging it does to get kids to make in-app purchases. In-app purchases in games aimed at pre-schoolers and elementary school age kids are unethical in the extreme, and should be the first thing regulators go after.