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Impact of Mobile Games on Application Development

By SiliconIndia   |   Thursday, February 7, 2013   |    4 Comments
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Bangalore:  While the games people play on the Android devices, iPhones or iPads may simply seem like leisurely pastimes, a new article from NetworkWorld reveals that this business has proven to be a lucrative business for developers. Despite the fact that many games tailored for mobile devices are free to download, the nature of in-app purchases and marketing has allowed developers to experience great potential for profit. Specifically, the article states, "Last year, in-app mobile game purchases of virtual goods produced $13 billion in worldwide revenues, compared to $6 billion in mobile advertising revenues."  Having experienced this industry firsthand as the young entrepreneur behind Hawk Visions Applications, LLC- a mobile app development company- Joshua Pastore expands upon just how worthwhile this tech-related business can be.

As the article notes, many app development companies do not rely on generating profit from simply selling the game upon its first release. Instead, they use free downloads to attract users, which allows the company to use analytics and break down the way that people play these games. If the game is compelling enough, players will feel prompted to return to use them on a frequent basis- often daily. Based upon this consumer behavior, games can produce a profit from selling advertising space or offering in-app purchases that allow the user to expand gameplay opportunities.

While virtual goods may not seem like a likely purchase among today's consumers, Joshua Pastore notes that apps can compel users to buy extra games, levels and other add-ons if they motivated by a sense of competition and intriguing gameplay. The article also reveals that, "The value of iterative data-driven mobile design and development is proven by increases in year-over-year Average Revenue per Daily Active User as the percentage of users willing to spend more than 75 cents per day has increased from three percent to 15 percent between 2011 and 2012."

While mobile games may prove lucrative, they are only a segment of the entire mobile app market. For example, Joshua Pastore and Hawk Vision Applications released an app called the Daily Grind; although not a game, this app serves customers looking for products in the productivity field. Like games, however, Pastore notes that the Daily Grind can prompt return users as it is a comprehensive app that can help businesses and individuals better assess and plan for goals.

According to Joshua Pastore , the mobile app market as a whole can learn a few lessons from the gaming industry, especially in marketing development. He states, "The trick is to get people to find the game initially. This can be achieved by cross-advertising in other games or apps."

While mobile gaming offers a lot of potential in terms of in-app advertising and subsequent revenue, Joshua Pastore also notes that the future of this relatively young business will depend on how developers respond to trends and reinforce the established framework in years to come.


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