Though the place is crowded with options, the app store bestseller list is dominated by 99-cent games like the Moron Test and Sally’s Spa – hardly the foundation of a new mobile economy.” - Jon Fortt of Fortune “ A casual observer surfing through the offerings on iTunes today could easily mistake it for a digital dollar store. We’re trying to keep our developments to three or four months at most.“ Ian Lynch Smith of Freeverse ” The collapse of the initial pricing model of $10 and $5 games to 99-cent and $3 games has made everyone very cautious.
DRAGTHING COUPON SOFTWARE
But if it turns out the only way you end up being successful on the iPhone is games that cost a couple dollars, you’re never going to achieve that parity with the other handhelds.“ - John Carmack of id Software ” If games could have a reasonable shelf life at $9.99, you will start seeing multi-million dollar development budgets as the market continues to grow. I’m not going to rehash the entire argument about App Store pricing, but here are a few rather poignant quotes from recent articles: After writing an incredibly inspiring blog post about value and premium pricing in the App Store, Marco Arment has also succumb:.After being one of the most vocal critics of the rush to $0.99, Craig Hockenberry seems to have found the $10 price point unsustainable.Here are a few examples of apps currently in the top 100 after giving up on the $10 price point:Īnd here are a couple price drops that are a bit nearer to my heart: Human psychology makes value judgements based on peer groups, which is one of the reasons the competitive landscape is driving prices so low.“ - Ian Lynch Smith of FreeverseĪpps with a strong brand name can launch at $10 to maximize revenue, but most successful $10 apps eventually end up at $5 (or less). “That’s why games are having trouble maintaining their price points. When all sorts of amazing apps fly up the charts at $0.99, charging $10 *seems* completely unreasonable. I really don’t blame App Store shoppers for this perspective. The only reason I am giving it 4 stars is because of the price….$10 is a bit excessive, although I think this will help me save money in the long run, so it could pay for itself.” “This is the best app I’ve purchased by far… the only down fall is the $10 purchase price. Here are a couple choice quotes from recent Gas Cubby reviews: The downward spiral in app prices caused by the Top 100 list and Apple’s relatively hands off approach during the first year of the App Store has created completely unrealistic pricing expectations that may haunt the entire mobile software industry for years to come. Whether they did so deliberately or inadvertently is still up for debate, but either way, the future of iPhone platform and of the entire mobile software industry hinges on the direction Apple takes with App Store 2.0. Some would argue that this is just market economics at work, but I think there is a very strong case to be made for Apple being directly responsible for this trend. With the average price in the App Store now at $1.39 for games and $2.58 for all apps, the App Store is killing the value perception of mobile software shoppers.
I’ve managed to create some great apps and build a successful little business while swimming upstream in the App Store, but I’m finally willing to concede that for most apps, the price ceiling is now $5. In addition to the countless hours I’ve spent overseeing the development of the App Cubby apps, I’ve also spent a ton of time poring over the App Store charts, experimenting with pricing and marketing, and studying accounts from other developers. The App Store is a tough place to do business.
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