Freemium Mobile Game Business Models
In the ever-changing gaming industry, it is a daunting task to properly define and analyze a market segment in the gaming industry. Especially in the relatively new mobile segments everything is constantly changing and evolving. In an attempt to achieve such a goal, DFC Intelligence narrows down the research scope as specific as possible even though sometimes it may seems arbitrary.
This report looks specifically at the business models for mobile games and how they are likely to monetize over their lifespan. More specifically, the focus is on mobile games that are given away for free and then look to monetize by selling add-on content after the product is installed. This is what is known as the freemium business model (often called free-to-play).
The report analyzes the latest usage statistics for actual games from Priori Data. This data is then triangulated with other sources such as reported revenue and actual spending data. The goal is to build hypotheticals business models for products that launch in the near future for iOS and Android devices. This report provides an overview of DFC Intelligence's custom forecasting service done in partnership with Priori Data. This service provides forecasts for specific product(s) based on the latest data in the market. Forecasts can be done down to an individual country or region level and can be broken out into multiple scenarios including best, worst and expected case.
To build forecasts, DFC Intelligence has looked at hundreds of titles. The data in this report looks at a handful of titles that are representative of some fairly major products in their category. The actual forecasts are built with the understanding that most products will not be as successful as the products in this report. Thus these forecasts are considered to be on the moderate side.
It also is important to note that most products will do nowhere near the level of success presented in this report. For every hit mobile game there are dozens of failures. The goal here is to present what can be reasonably expected from a success.
The report is divided into three major sections. The first section provides an overview of terminology. The next section looks at actual statistics from specific games. The final section contains hypothetical business models for specific types of games.
It should be noted that these business models do not exist in a vacuum. DFC Intelligence also provides qualitative analysis of what it takes to make a successful product/company, not just in mobile but across all platforms and markets.