New Vox Report Shows How Pokémon Go Makes Money
A new Vox Observatory report has shed some light on why free apps like Pokémon Go become large financial successes. A relatively new concept in virtual game-making and pricing is referred to as “fremium” play. The term is used to explain the concept that most app-based games adhere to now. Game makers eliminate any price to download (initially), then charge customers to enhance or convenience their game-play once they are involved in the game. The business model takes advantage of people’s tendency to not take credit card purchases as seriously as those involving cash. The game-play often employs unusual exchange rates where “coins”, “credits” etc.. and their actual currency are concerned. However, only a very small fraction of those who download the games actually spend money within them. It has also been determined that the game developers also use the purchasing components to determine how they should update their games.
by Gabriela Garcia