CHART OF THE DAY: In-App Payments Have Totally Changed The Business Models Of iOS Games

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In-app payments have radically changed the business model of games in iOS, says Jeferson Valadares of Flurry, a mobile analytics company.

Free games are now generating the majority of the revenue amongst the top 100 grossing games in the App Store. A free game gets more downloads, and if it’s engaging, and has the right mechanics, it should compel you to pay for features inside of the game.

Only a sliver of gamers — 0.5% to 6% of users says Flurry — actually spend money in a free game. But those that do spend big supporting the developer and keeping the app free for everyone else.

chart of the day, app store revenue, top 100 grossing games, july 2011

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