in-app purchases

The rise of the billion dollar mobile gaming market: infographic

It can’t be surprising to anyone with a smart phone (or has been on any form of public transportation) that mobile gaming is on the rise. Developers are scrambling to get the next big hit like Draw Something as the mobile and social game giants, Rovio and Zynga, are continuing to dominate the market.  

According to a new infographic by businessdegree.net, more than $12 billion was generated by mobile gaming in 2011 with 34% of the top grossing apps in the app store using the freemium model. Once someone is hooked, they’ll continue to spend a few dollars to continue to enhance their play. On average freemium games make $12.92 a month per user. 

Court: Apple can be involved in Lodsys patent suit

Last year, a company called Lodsys began contacting developers of iPhone and iPad apps utilizing in-app purchases, alleging that their use of in-app purchases, functionality provided for by Apple, violated a patent it owned.

Patent trolling has become so common that this wouldn’t be surprising, but there was a wrinkle in Lodsys’ case: Apple itself was already a licensee of the Lodsys patent in question.

Relationship building key to in-app purchases

Mobile in-app purchases are expected to hit $4.8bn by 2016, and increasingly they’re key to the monetization models mobile app developers and app store operators are employing to keep themselves well fed.

But the dollar signs are somewhat deceptive. Profiting from in-app purchases is a lot more difficult than just enabling in-app purchases, and not all developers will implement the model successfully.

So what’s the secret to success?