Report: 90% of Google Play Revenue come from Games, Japan #1 by Revenue.

1st Course

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And 98% of Game revenue come from freemium (F2P) apps.

Games now generate 90% of Play revenue, and 98% of that revenue comes from freemium apps, according to a new report from mobile analytics company App Annie. Japan continues to lead all countries in pouring cashing into Google’s coffers, App Annie’s data reveals.
Downloads were up 1.5x over the past year, while revenue jumped 2.5x.
Japan was the top country for Google Play revenue in Q1 2014, continuing a trend with 2.4x revenue growth compared to the same period last year. But the U.S. jumped ahead of South Korea, with strong 2.6x growth, while Korea cooled a little to 1.9x. Germany and the U.K. were both also fast-growth Android regions, although on smaller bases.




http://venturebeat.com/2014/06/23/google-play-growing-growing-growing-downloads-up-1-5x-revenue-up-2-5x/
 

Eusis

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...yup. Yup, yup, yup...eh-yup. How's everyone else's day going? Is there any reason for me NOT to be concerned here?
Hope this is the mother of all bubbles? Though even that can be devastating in and of itself, but at least you can rebuild on the ruins left behind.
 

Eusis

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Yeah, sounds like you need a lot to change there, and it's probably one of the reasons it's enabled to the degree it is and relative to AAA/console games and now even handheld.

Though it still goes to a crazy degree in the USA, I guess it's the combo of the fact it IS also highly appealing to a casual audience and the fact "not giving a fuck" is a two way street as people can just as easly have that mentality about blowing tons of money to get ahead in a game as they would to playing a game as an adult period.

EDIT: Though I suppose you get enough people in the closest eventually the closet can't hold them all and it just comes spilling out, as it were.
 

1st Course

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Japan has a gambling problem.
No one really pay for shareware apps on mobile anymore. Even for $0.99 people don't want them.

From what I see minecraft:pocket edition is the only shareware app charting in top 100 grossing chat atm, everything else is F2P with iaps.
 

Game Guru

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I don't understand how microtransactions in F2P games could make up 88% of Google Play's revenue. Do people just download a F2P game they like and just spend and spend and spend until all their money for games is gone?
 

Squishy3

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I don't understand how microtransactions in F2P games could make up 88% of Google Play's revenue. Do people just download a F2P game they like and just spend and spend and spend until all their money for games is gone?
There's a very small group of players with a huge expendable income. There was a study that said most freemium revenue comes from .15% of players.
 

Quasar

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I'm surprised in a way, as I simply don't view android as much of a gaming platform compared to iOS. But then looking at my account very few apps I use are actually non free ones.

Still surprised though if it includes all of google play (apps, books, magazines, videos, music).
 

Game Guru

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There's a very small group of players with a huge expendable income. There was a study that said most freemium revenue comes from .15% of players.
So basically, the 0.15% have so much money to spend that it pays to cater to them exclusively and ignore the 99.85% who aren't as easily parted with their money? That's all kinds of wrong.
 

Cipherr

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So basically, the 0.15% have so much money to spend that it pays to cater to them exclusively and ignore the 99.85% who aren't as easily parted with their money? That's all kinds of wrong.
Yep, whales outspend the rest of us a million to one. Thats why the F2P horseshit is shoehorned into all these mobile games. It looks stupid to us, but behind the scenes the publishers are laughing their way to the bank while we cry about our once beloved IP's being whored out.
 

Pickles Spill

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So basically, the 0.15% have so much money to spend that it pays to cater to them exclusively and ignore the 99.85% who aren't as easily parted with their money? That's all kinds of wrong.
So if you think about it, 88.2% of Play revenue comes from .15% of players.
 

Fuchsdh

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That's so surprising to me, I dunno why. I guess we get broadcast this image of Japan as those weird but endearing panty-sniffing guys who are really into games. The part about work habits makes a lot of sense though, and it would explain where quick mobile experiences would thrive compared to dedicated experiences.

So basically, the 0.15% have so much money to spend that it pays to cater to them exclusively and ignore the 99.85% who aren't as easily parted with their money? That's all kinds of wrong.
There's a reason they call them "whales", it's just like real-life gambling. The vast majority of people don't get addicted to gambling, so they plunk down $20 on a weekend and lose it or make a small bit back. But the people you can hook will sink all their money into it, and at that point it's just the laws of gambling: the house will win eventually.

When you view it from the economic model side the issue with these games being "fun" or not becomes pretty obvious: they aren't really designed to be "fun" to the majority of people because the majority of people aren't what you're going to make your money from.

I'd say things like Dota 2 are the exception but even there we've got threads on GAF where people have spend $700 on virtual armor, subsidizing people like me who have bought jackshit. There's definitely an "upside" to F2P for many gamers; it necessarily comes at the expense of a few though.

On the topic of Android, though, I'd kill to see iOS numbers. I imagine that freemium games are *slightly* less prominent, given that iOS users are generally more "valuable" in that they buy a lot more apps and use their devices a lot more. But I'm sure it's still the majority of games these days.
 

Otakumegane

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Japan's low birth rates and less gaming can both be partially attributed to long work hours.

How you gonna meet people if you work all day? And with the youth base ever so decreasing because of that no wonder Nintendo's having a difficult time.
 

1st Course

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On the topic of Android, though, I'd kill to see iOS numbers. I imagine that freemium games are *slightly* less prominent, given that iOS users are generally more "valuable" in that they buy a lot more apps and use their devices a lot more. But I'm sure it's still the majority of games these days.
Same thing

http://www.appannie.com/apps/ios/top/?device=iphone

Minecraft is the only paid app charting in top grossing chart.
 

JesseZao

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I wonder when the puzzles vs dragons model will die down in asia. (Pokemon bejeweled with gambling)
 

Duxxy3

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Couple things I'm seeing...

This shows why consoles are dead in japan. Also, I'm surprised that the united states is that low, considering the size of the country compared to japan. Maybe the states just overwhelmingly prefers apple?
 

fedexpeon

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Japan's low birth rates and less gaming can both be partially attributed to long work hours.

How you gonna meet people if you work all day? And with the youth base ever so decreasing because of that no wonder Nintendo's having a difficult time.

This is why old traditions like arranged marriage and marriage meeting will never die in the East/Asian culture.
My GF is my childhood friend, and the reason we started dating because we both joked that we probably won't be able to get married until our 30s due to our fast pace career...but that is a no-no in our culture to get married in our 30s.
Our relationship works because we both just laugh at how ironic this turn of an event is...pretending to play house at kids then literally playing house at adults.
But yeah, our culture pressures us to do well in school/career that love and marriage is almost a second matter. And marriage to most traditional family is mostly about carrying your family name into the future.
But hey, sometime you will get lucky that love, career, marriage all fall into places.
 

Eusis

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Yep, whales outspend the rest of us a million to one. Thats why the F2P horseshit is shoehorned into all these mobile games. It looks stupid to us, but behind the scenes the publishers are laughing their way to the bank while we cry about our once beloved IP's being whored out.
It's why it's a bubble that needs to burst, badly. And likely messily.

It may be forced to collapse too depending on who the whales REALLY are, some may be millionaires who literally do not need to give a fuck about how much they're blowing, but there's at least a few people who are blowing way more than they responsibly can.
 

Bitmap Frogs

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So basically, the 0.15% have so much money to spend that it pays to cater to them exclusively and ignore the 99.85% who aren't as easily parted with their money? That's all kinds of wrong.
The 99.85% remaining are there just the whales have someone to show off to.
 

Nightengale

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That's so surprising to me, I dunno why. I guess we get broadcast this image of Japan as those weird but endearing panty-sniffing guys who are really into games. The part about work habits makes a lot of sense though, and it would explain where quick mobile experiences would thrive compared to dedicated experiences.
This is why popular game franchises in Japan largely target kids/teenage audience. The sweet spot for gamer demographics in Japan hasn't gotten older.

Panty sniffing stuff are nothing but the most hardcore and niche aspects of the Japanese community that gets overblown due to fact that Japan has vending machines for stuff like this.
 

1st Course

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It's why it's a bubble that needs to burst, badly. And likely messily.

It may be forced to collapse too depending on who the whales REALLY are, some may be millionaires who literally do not need to give a fuck about how much they're blowing, but there's at least a few people who are blowing way more than they responsibly can.
F2P is not a bubble. People in China and S.Korea have been doing F2P for like 15+ years now, and to this day the game market there still growing.
 

Quasar

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The Japan figure is interesting. I guess its similar on iOS. Interesting for what it means for the future of dedicated devices.
 
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www.neogaf.com
So basically, the 0.15% have so much money to spend that it pays to cater to them exclusively and ignore the 99.85% who aren't as easily parted with their money? That's all kinds of wrong.
"We are not their customer" is a damning place to be. We will be ignored. We will be forgotten. We will be expendable.

That's so surprising to me, I dunno why. I guess we get broadcast this image of Japan as those weird but endearing panty-sniffing guys who are really into games. The part about work habits makes a lot of sense though, and it would explain where quick mobile experiences would thrive compared to dedicated experiences.
I heard until a decade ago that was almost the opposite. Salarymen on the candy cabs whoopin' up on you at VF. Long lines for many systems and many differing types of games (not just the heaviest hitters). Really mid-line games bringing in 500k sales. Compare this to the rest of the world where it took FOREVER to throw off that post-crash mindset of anyone over 18 to be suspect unless their gaming was on a PC or PC hybrid.
 

CadetMahoney

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Gambling for money is illegal in Japan.
Yup, that's why you gamble for prizes that you redeem for money.
Can someone describe how this works, like, you win a prize you take it where>?

It may be forced to collapse too depending on who the whales REALLY are, some may be millionaires who literally do not need to give a fuck about how much they're blowing, but there's at least a few people who are blowing way more than they responsibly can.
The few who are irresponsible with their money appear in many areas like gambling in general anyway.

Also I doubt any real millionaires are going to spend their time twiddling their thumbs on some phone app like some addict. There's so many better ways to spend your money recklessly day in day out for them I guess.
 

small44

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So 98% of revenue are from f2p game dosn't this mean people want traditionnal games on consoles that's why i don't think Smartphones are the reasons for the bad home consoles sales