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Tuesday, April 24, 2012

NPD: 40% of freemium gamers have made in-game payments - FierceMobileContent

NPD: 40% of freemium gamers have made in-game payments - FierceMobileContent

our out of 10 consumers who have played an upgradable freemium game have made an in-app payment to extend or enhance the gameplay experience, according to a new report from market research firm NPD Group.
About 38 percent of the U.S. population currently plays some type of freemium game--i.e., titles that are free to download but offer premium in-app transactions like virtual currency, additional levels and virtual goods--NPD reports. Only 15 percent of respondents with awareness of freemium games choose not to play them, with NPD noting the barriers to entry are essentially limited to ownership of a compatible device and web access.
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"The majority of freemium gamers who opt to pay to upgrade their experience do so within the first month of playing a particular game," said NPD Group Industry Analyst Anita Frazier. "When designing a game, it's important to consider features that would drive quick conversion to pay."
NPD states that females are more likely to convert than males, while males and consumers between the ages of 13 and 34 are the most likely to abandon a freemium title after trying it. "Males and those ages 18 to 34 are traditionally seen as a big part of the core gamer audience, so it's likely these groups are not quite as engaged with freemium because the gaming experience is quite different from what they are used to from the games they play on consoles, handhelds or PCs," Frazier said. "At a minimum, for these gamers a freemium game would provide a different experience, like a snack versus a full meal."
Sales of mobile in-game items will surge from $2.1 billion in 2011 to $4.8 billion in 2016, driven by a sharp increase in smartphone adoption and growing user comfort with the freemium revenue model, according to a forecast issued earlier this year by Juniper Research. The proportion of mobile gamers purchasing in-game items will grow as subscribers become more accustomed to the freemium concept, Juniper states. The firm anticipates the trend will be most pronounced in the social and casual genres, where consumers have grown to expect compelling mobile experiences for free or next to nothing.
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Read more: NPD: 40% of freemium gamers have made in-game payments - FierceMobileContent

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