Take-Two Interactive CEO Touts Success with Premium Price Point for it's iOS App
Although some people view mobile app pricing as a race to the bottom, Take-Two Interactive believes their $19.99 premium price point for its console-quality “XCOM” title has proven that quality software can command a higher price. During his company’s quarterly earnings conference call, Take-Two CEO, Strauss Zelnick, said that XCOM: Enemy Unknown on iOS was a success. In his eyes, the popularity of the title “illustrates that consumers are willing to pay a premium price for premium entertainment.”
No specific sales figures were offered for the title but it was noted that the title did crack the top 10 grossing applications in the App Store within its first week. For those of you who didn’t now, the title was a port of a PC and console game, when it launched on iOS, was less than a year old. According to Zelnick, “this bodes well for the opportunity to delivery profitably our most immersive AAA titles to mobile platforms as they evolve.”
The apparent success at the $20 stands in contrast to mobile app pricing trends which some view as a “race to the bottom.” A study released earlier this month found that iPad users pay an average of 50 cents per application downloaded, while iPhone owners pay just 19 cents per app. As of recently, just one of the top 43 grossing applications on the iPhone App Store was a paid download, which was Minecraft – Pocket Edition. On the iPad, Minecraft is the only paid option among the top 37, with the newly released djay 2 coming in at Number 38 for $4.99.
Many game publishers and developers have increasingly leaned toward “freemium” titles, which are free to download but include in-app purchases for game content. Apple’s iOS platform may attract more console-quality games such as XCOM: Enemy Unknown when official “Made for iPhone” gaming controllers debut later this year. The upcoming iOS 7 software update is said to add support for such peripherals offering more precise controls for traditional console-style games than a touchpad can offer. We’ll have to wait and see how the industry changes going forward.
Source: Pocket Gamer