By now, everyone who has a smart device, be it a phone, computer or tablet should be well-acquainted with the term “in-app purchase”, or IAP for short.
Still, for those who may not be familiar, it’s a marketing concept that relies on providing quick boosts to game progress or equipment in exchange for real money. At first glance, that might be easy to shrug off as just another gimmick, but you might be surprised to know that it has been a keystone in the rise and fall of many gaming franchises who got on the hype train.
Anyway, according to a recent report published by SuperData (thanks, guys), gamers nowadays tend to spend significantly more on one or two particular games rather than spread it out across a wider range of franchises. More interestingly, the data also reveals that overall IAP expenditure has actually declined from last year!
Apart from the proportional increase/decrease in choice spending as mentioned above, the decline is attributed to two other factors: the community’s growing wariness of IAP-style marketing gimmicks as well as the failure of additional game content to attract players.