Tag: in-app purchases

In-app purchases are becoming a prominent trend in mobile games

In-app purchases have become very common in the world of applications, especially where mobile games are involved. Many mobile games are using in-app purchases in order to generate revenue. These games offer virtual currencies and in-game items that make  the gaming experience either more fun or less of a challenge. Many consumers have shown willingness to make in-app purchases because it allows them to skirt the otherwise unappealing aspects of certain mobile games. The value of these in-app purchases has been a debated issue, especially as some consumers begin to consider the practice somewhat dubious.

Developers leverage in-app purchase to generate revenue

Mobile games developers are in a somewhat precarious position when it comes to selling their products to mobile consumers. It is considered a nearly impossible feat to sell these consumers mobile games that cost more than $5, as mobile games typically offer significantly less content than those designed for consoles, which tend to be sold for $50 or more. The appeal of mobile games is that they offer entertainment at a very low price, with many of these games being completely free. Developers, however, have to generate a profit in order to stay in business. Apart from advertising, in-app purchases are considered the best way to produce revenue.

Mobile games may be more expensive than they appear

In-app purchases allow developers the opportunity to generate more money as they are not considered a one-time affair. With conventional games, such as those for consoles, the consumer pays for the game itself but may never make another purchase in the future. In-app purchases can encourage consumers to continuously pay for features they find engaging, and purchases can be made with little more than a few taps of the finger. While this may be a good way for developers to generate revenue, in-app purchases in mobile games have been causing some problems for consumers in recent months.

In-app purchases lead to young consumers spending money

Mobile games are enjoyed by consumers of all ages, but the primary demographic for most of these games falls in the 12-17 age range. Children that play mobile games are not typically concerned with spending money while they are enthralled in their gaming experience. As such, they are more likely to conduct in-app purchases without permission, just so they can access certain features of a game more quickly. In 2011, Garen Meguerian’s 9-year-old daughter spent more than $200 playing a simple mobile game, which lead Meguerian to file a lawsuit against Apple claiming that the company had made it too easy to conduct in-app purchases.

Mobile commerce subject to government investigation

The Australian government has launched an inquiry concerning the experiences consumers are having with downloading applications and applications used to make purchases from mobile devices. Mobile commerce has been growing in popularity in Australia for some time. The country is serving as host to several mobile commerce initiatives, including those coming from the Commonwealth Bank, one of the largest financial groups in the country. The growing popularity of mobile commerce has created a sense of unease from the Commonwealth Consumer Affairs Advisory Council, however, which is concerned for the quality of service and security of consumer financial information.

Simplicity of mobile apps to be investigated

The government agency is to investigate the quality of mobile application downloads to determine whether they are more complicated than they need to be. Some consumers have been issuing complaints regarding the overly complicated nature of some mobile applications, claiming that they are confusing and, at times, misleading. While app downloads are a matter for investigation, the government is much more concerned with in-app purchases.

Consumers raise complaints over in-app purchases

Mobile payments are often a sensitive issue, especially in terms of security. While many consumers have shown interest in making payments through their mobile devices, this can be dangerous and puts their financial information at risk. In regards to in-app payments, the Commonwealth Consumers Affairs Advisory Council notes that consumers are experiencing a great deal of frustration from ramping costs that they cannot easily manage through certain applications. These applications could present a financial threat to some consumers.

Public consultation period to begin within weeks

Consumers and companies operating within the mobile commerce industry are being invited to share their input on the matter with the Australian government. The Commonwealth Consumer Affairs Advisory Council will be opening up the inquiry for a public consultation period within the coming weeks, hoping to attain a more in-depth understanding of the problems consumers are having with mobile applications and mobile commerce in general.