For a couple years we offered two versions of our apps - paid and free, free being ad supported. In a bid to simplify things and encourage more conversions, we switched to in-app purchase to get rid of ads. (Also, app stores had been optimized to push down app results for non-free games - plenty of reading out there about the causes and effects.)
To date, just under 5% of our revenue is paid. Despite playing for years, many people don't believe our games are worth $1.99. If you believe the race to the bottom will reverse itself, I'm here to tell you it won't. It's guided by the walled gardens and they like it this way.
We have had millions of downloads and on our most popular game, have abnormally long retention. Even some of our most die-hard players will not spend $1.99.
Maybe - MAYBE console gaming will one day return from F2P, but I doubt it. At least not in the near future - the industry is still moving towards it.
But in mobile gaming, success is a volume play. And the volumes won't part with $.99 in the traditional way. If they did, F2P wouldn't be a thing. And maybe gamers will pay for games, but the masses? Not so much.
The problem I have with many freemium games is for me they have absolutely no lasting appeal. I would estimate that 75% of freemium games I've installed, I may have played a sum total of half an hour and then got annoyed/fed up/bored and removed it. Adverts, replay timers etc. are certainly to blame but what mostly is a turn off for games of these types is there is no soul in a lot of these games.
Take Triple Jump, Don't Step On The White Tile, Avoid The Blocks etc. for example(s). They're like Christmas cracker toys. You play them once or twice, discover how lame they are and throw them away.
While I realise those games aren't meant to be much more than that (and an SEO exercise), there are so many like these on the various app stores and few games that have any kind of depth to them. I would more than happily, and have happily, paid $1, $2 or more for a game that held my interest for longer than half an hour. The biggest problem I have is these throw-away games have been so cleverly marketed or SE-optimised that they make up the bulk of "featured", "highlighted" or "best selling" games and any game with a modicum of depth disappear into the ether, undiscovered. It's frustrating for someone who wants to play a fun, entertaining game, not an annoying, repetitive and uninspiring christmas cracker game.
[1]https://play.google.com/store/apps/details?id=com.curated.an...
That's an optimistic statement almost bordering on naive. What the market seems to be moving towards is adding F2P mechanics to $60 games. GTA V lets you buy in-game money for the multiplayer mode. Mortal Combat X has easy fatality mode where you get the famous "fatality" animations after every game (costing $0.20 every time it triggers). Almost every AAA game on the market lets you change the look of your character for a few dollars.
This is a slightly more nuanced take than mine, which is that F2P games are what gamers have been voting for for years with their wallets, by stealing everything that wasn't nailed down and most of the stuff that was.
It's worth nothing that Anthony Pecorella, the speaker in the first linked video, also moonlights for an indie game company (Level Up Labs) that's been quite successful while tacking completely opposite to F2P. So in my experience he has a strong appreciation for both sides of the business. And Emily Greer is a super knowledgeable badass that one ignores at their peril -- a lot of her talks have really challenged some of my assumptions about the F2P business models.
Source/Full Disclosure: I know this stuff because I'm Anthony's co-founder at LUL.
> Some people made a lot of money with freemium, so everyone is copying them.
Freemium was a response to the market. Most of players are not willing to pay anything:
http://venturebeat.com/2015/01/05/monument-valley-developer-...
I don't see freemium disappearing anytime soon.
This model isn't as harsh as actually locking out from the game if you don't pay, but it sure does move along the same axis of paying to alleviate a time-based restriction.
And yes, I'm sure you can 'have fun anyways' and a host of other standard pay to win excuses, but the fact remains its an element you pay for that makes you more competitive, and not simply cosmetic.
If people like a game, they will pay for it as long as you don't have some kind of annoying obstacle preventing them from doing so.
edit: DRM isn't even really a good counter to piracy for the most part. It will be cracked sooner or later (sometimes before the game is even officially released) and the people who wish to pirate it will do so.
(Which is exactly the value point I'd be working to improve if I was working at Steam and trying to convince more titles to release there.)
* http://www.reddit.com/r/Steam/comments/1j4lj3/how_doesdid_st...
Steam lets players join multiplayer games with their friends -- seamlessly merging a friend list with game servers across all games. That's a strong incentive to use Steam.
So what about other forms of content without online multiplayer like say, TV shows?
I.e., 100k paid sales and 10M "unauthorized copies" is still enough for an indie dev to make a living.
Some people made a lot of money with freemium, so everyone is copying them.
I can't stand wait timers, energy systems, and all the other tricks they use to balance freemium games.
Many freemium games require an Internet connection to play, which is bad for me because my prime gaming time is on the subway while commuting.
Another bad part about freemium is that, when they someday shut down the servers, you won't be able to play the game AT ALL anymore. I can still play Super Mario Bros. even if Nintendo goes bankrupt and decides they don't care about the game anymore.