Although mobile games are becoming increasingly attractive for developers looking to build something that can be monetized relatively easy, there are still a lot of misconceptions regarding the money earned by doing so. Despite the wide variety of games, most of the revenue is coming from a very small group of people. Is this to blame on the traditional payments being used for microtransactions? If so, Bitcoin should be able to help in that regard.
Mobile Gaming Micropayments Are In a Slum
One of the most common error consumers make when hearing about mobile gaming earnings is assuming lots of people in the world are paying money to advance in these games. While it is certainly true, there is a lot of potential for different people to buy in-game items with microtransactions, the reality paints an entirely different picture.
The recent study by Swrve shows how close to half of the revenue generated through mobile gaming micropayments comes from 0.19% of all players. That is an astonishingly low number, although it has to be said those are the people who will spend a lot of money on the same game time and time again.
However, for mobile game developers, this is a particular source of concern. If their game fails to achieve market penetration – which is very likely due to broken discovery engines on all major platforms and app stores – development can quickly become a fruitless effort regarding monetization.
Offering free-to-play mobile games with a micropayment option is a double-edged sword these days, as plenty of players will be more than content to wait and achieve a goal in the game. Not everybody wants to “beat” the game in the shortest amount of time possible, but there is another reason few players opt to pay to advance.
Traditional payment solutions, such as credit cards, do not lend themselves well towards making small payments. Transaction fees are very high for any amount, eating up even more profits for the developers. Bitcoin would offer a far more versatile solution for both consumers and developers as the transaction fees are paid by the sender, and the recipient can convert the funds to fiat currency if needed.
Moreover, unlike traditional payment solutions, Bitcoin is available to anyone in the world. Sending transactions takes mere seconds, and there is no third party controlling the funds and delaying money to be transferred. Whether or not it will influence spending behavior in the mobile games industry, remains to be seen, though.
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