99C iPhone games

Very interesting article: http://appcubby.com/blog/files/5_is_the_new_10.html

 

I am in correspondence with the author of the article and he sent me this, which I am sure will be of interest to many here:

For all the money, connections, and experience of Ngmoco, the launch of Rolando 2 ($10) was pretty much a complete flop even with Apple's help in featuring it prominently within the App Store. It never peaked above #50 in the Top 100 list and only stayed in the Top 100 list for 13 days. Rolando 2 isn't even in the Top 100 games in the US right now less than a month after its launch. This is a rough estimate, but it takes worldwide sales of ~450 to get into the US Top 100 games list. So, Rolando 2 is definitely making less than $3150/day (450 units * $10 - Apple's 30%), but it's probably making quite a bit less since it's not even on the chart. If an app doesn't gain traction at launch, there's very little chance that it can fully recover without dropping its price. I bet we'll see a price drop soon.

EA is the biggest brand name in gaming and has been porting some of their most recognizable franchises to the App Store. Most of them started at $10, but eventually dropped to ~$5. The Sims 3 is currently #44 in the App Store... I'd bet you anything that they either drop the price within the next month or so, or Apple helps them out with some big feature in the App Store (which they've already done once). Here's a look as some of EA's pricing history:

http://appshopper.com/games/tiger-woods-pga-tour®-by-ea-sports
http://appshopper.com/games/tetris
http://appshopper.com/games/scrabble
http://appshopper.com/games/spore-origins
http://appshopper.com/games/simcity
http://appshopper.com/games/need-for-speed-undercover

EA is even having trouble with its new $0.99 strategy. Their new "micro-studio" 8lb. Gorilla (http://toucharcade.com/2009/07/10/exclusive-introducing-eas-micro-studio-8lb-gorilla-and-zombies-me/) recently launched Zombies & Me. It was an even bigger flop than Rolando 2. It didn't made the Top 100 list at all and is barely clinging to a spot in the Top 100 games. Using my sales estimates from above, Zombies & Me is making less than $315/day and in the 12 days it's been in the store has probably made less than $4k. That's a complete embarrassment no matter how "micro" the budget of 8lb. Gorilla. All may not be lost if Apple helps them out with a feature, but on their own it seems as though even mighty EA can't guarantee the success of a $0.99 app.

People seem to think that apps will "make it up on volume," but that only works for the Top 50-100 apps. Zombies & Me making less than $315/day as a Top 100 game proves that the $0.99 price point really isn't viable no matter who you are. Some apps do shoot up the charts and make lots of money, but you might as well go to Vegas and roll the dice with whatever money you spend on an iPhone app. People just don't get it and based on Apple's comments during the earnings call yesterday, I don't think they get it either.

The thing is, with App Store pricing dropping through the floor, there's just not enough motivation for anyone to invest the kind of time and money it would take to catch up to a new player like Ngmoco much less EA, but even Ngmoco and EA are struggling to maintain premium pricing in the App Store. Unless Apple makes some significant changes to the structure of the store, spending big dollars on "proper brand management" is just throwing good money after bad.