Tag: mobile payments

Freemium makes mobile games a booming market

Mobile games have become a very prominant market for the game industry. Games for smartphones and tablets represent a market worth billions of dollars in revenue and this market has begun to attract game developers that had previously been focused exclusively on developing titles for consoles and PCs. Though mobile games generate a massive amount of revenue on a yearly basis, most of these games are entirely free, though boast of a wide variety of in-game transactions. This business model is often referred to as “freemium.”

In-game transactions relatively accepted by gamers

Freemium is a simple concept: Mobile games that are free to obtain and free to play, but provide gamers with the opportunity to purchase in-game items and power-ups that can make the game more enjoyable. This is where the majority of the revenue that is generated by mobile games comes from. The freemium model allows developers to offer services to gamers for a relatively low price and because these prices are so low, consumers tend to participate in in-game transactions on a regular bases.

Freemium opens mobile games to more consumers

Analysts from Index Ventures, a venture capital investment firm, suggest that the freemium model is ideal for the mobile games market. This model allows developers to price-discriminate individual consumers, eliminating the upfront costs that are associated with other business models. A typical console game can cost anywhere from $30 to $60, but most mobile games are offered for free, with additional content being offered for as little as $1. Index Ventures suggests that the freemium model does not exploit consumers, but rather allows for a broader consumer base to participate in mobile games.

Business model not accepted by all gamers

Index Ventures suggests that many consumers are willing to sink money into mobile games in order to gain as much entertainment from these games as possible. The freemium model may be great for developers, but it is not universally accepted among gamers. Many argue that the freemium model encourages developers and publishers to create games that are deliberately restrictive in order to heavily promote in-game transactions.

The online search giant has now added itself to the near field communication nonprofit industry association.

Google has taken another step to underline the increasing interest it has in NFC technology by joining the board of directors for the industry association that has taken on the task of moving its use forward on a global scale.

The organization is a nonprofit that is geared toward increasing near field communication use worldwide.

The internet search giant is now a contributor to the NFC Forum, which accepted its participation as of Tuesday. Google, the owner of Android, has a considerable interest in NFC technology for a number of reasons, including its own mobile payments projects which have not been taking off at quite the pace that was expected.

Google had previously been a part of the NFC technology forum at a Principal level.

Following Tuesday, Google’s membership was upgraded to the Sponsor level at the NFC technology organization. Having reached the very top level of membership at the NFC Forum, this entitled the industry giant to a seat on the Board of Directors.

According to the NFC Forum Chairman, Koichi Tagawa, “As both a mobile operating system and NFC payment solution provider, Google brings a great deal of knowledge and experience to our Board.”

The Chairman went on to say that “The NFC Forum – and NFC users everywhere – will benefit greatly from the contributions of Google and our new members from around the world.” This is the belief upon which the organization was founded and that drives it to progress NFC technology around the world for a number of different uses.

The forum has said that it is still adding innovative companies from all over the world to its membership list and that the fact that this roster is growing at such a rate is a clear reflection of the “growing momentum for the adoption and implementation of NFC technology.” Though Google is an important addition to the Board of Directors, the organization does not feel that it will be the last important addition to the group. As adoption and awareness increases, so will the length and quality of this list.