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.