Mobile game stores are in hot water, why?
Why are mobile game stores in hot water?
Mobile game stores allow easy access to the games you love. For the player, downloading and trying new mobile games is quite an easy task. On the other side of things, the perspective is quite different. For developers of mobile games, they are upset about the fees that the companies who own the store charge to keep developers’ games listed for download.
Apple, Google, is in hot water right now, both with video game developers and the United States government. The companies are being accused of being a monopoly. But what exactly is a monopoly? Other than the famous board game, and video game, a monopoly is a business or enterprise with absolute control over its industry. Examples of this include Ford when it launched, and many would say that Amazon has a monopoly over the e-commerce industry right now.
What do the mobile game stores have a monopoly over?
Two operating systems are the way the world play mobile games. Therefore, whoever owns these stores has as much control as they want. “Price-gouging” is a term used to describe rising prices to higher than a fair or reasonable cost. An example of this could be at a grocery store where they charge too much for eggs. So, how do these companies price-gouge?
To better understand where the rip-off is coming from, you must look at how mobile games make their money. Additionally, the different types of mobile games. Freemium games offer players a “free” game. In this type of game, players do not pay an upfront cost to download a game, but in the app, there are in-app purchases (AKA, micropurchases). These micropurchases can be a significant source of income for developers. This is because the other primary way of monetizing a mobile game is advertising.
If advertising exists, then why do in-app purchases coexist?
While advertising looks good at face value, there is a hidden truth behind it; it does not pay well. This is why developers often turn to micropurchases to monetize their app, which can cost well above $10,000+. This is why they must obtain the funds they receive from this method, but one thing that can prevent this from happening is big tech.
Apple is under scrutiny right now for charging 30% on these purchases, but they argue that they are not doing anything their competitors are not doing. These companies will testify in front of congress to prove that they are not putting developers and other small businesses at a disadvantage, but the question remains, are they?
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