Matt Warren

Top Grossing Apps Has Stabilized – Keeping you out

I like to keep an eye on the top grossing apps in the app store.  They are the ones killing it, and rolling in much of the money players spend, they are the games that I look to for ideas to model in my own apps.

The big games have it mostly figured out, and now, it seems they have cemented their positions at the top. Ever since SuperCell launched Clash of Clans and Hayday roughly 6 months ago the top grossing list has been remarkably stable.  What’s going on here that allows these same games to dominate the store for so long despite the legions of developers worldwide releasing lots of new games?

I believe that there are several things these top apps do that effectively creates an impenetrable wall that keeps these games at the top and pushes others down.

First,  all the games at the top are addictive and have game mechanics that continually bring players back to the game.  The resource management games are obvious examples of this, but the hearts in Candy Crush are doing the same thing. Hook a notification to something that will keep a player regularly opening the game multiple times per day is key. The time consuming nature of these games naturally leaves players with less time to look for and try new games and it gives players more time to spend money with the top games.

Monetization in these apps is perfected.  In order to be on the top grossing you need to out monetize the competition.  Considerable effort has gone into these games to ensure that people are motivated to spend money often.

These first two things any developer with time can reverse engineer and add to their own games. These are just the first level to getting to the top grossing list – having a game with the ability to make money.

What keeps the top guys at the top is:

A critical mass of players that is both hooked to the game, and are referring new players. For new games that don’t have critical mass this is extremely difficult to get.

Constant paid promotion is also creates a barrier. The top games are tying up a huge percentage of the advertising inventory. Due to their high revenue per user, and reduced acquisition costs that come from free referrals (due to players referring new players, or being visible on the App Store) these games have massive ad budgets that push cost per click higher than most new games can afford spending.

Create a community around the game. The top games all have attracted a community of loyal players. The community deepens the level of engagement, and reduces costs associated with support. The best players also help direct new features in the game and identify areas for improvement.

These last 3 points are not possible for a new game to create or afford.  To get to the top then is extremely difficult and requires an unconventional or lateral attack.

Looking at the most recent addition to the top list gives a hint at how one might crack the top.  Puzzles and Dragons is a hit breakout game that was initially released to just the Japanese market. Starting with a smaller market allowed them to take time to perfect the monetization, test and scale their backend infrastructure, and focus their advertising dollars on market they could afford to buy into.  Restricting the release also had the effect of creating anticipation for the game, that made new releases much more impactful.

Unfortunately it is no longer possible to launch a new game to the market with a chance of making  money from it without a sophisticated marketing strategy.  For the indie developer, riches on the app store are just an illusion – a dream with not much better odds than winning the lottery.


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