Gameloft to support both premium, freemium app models

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Mobile gaming publisher Gameloft confirmed that it would continue supporting and selling premium as well as freemium titles for mobile.

In an interview with FierceMobileContent, Gameloft's VP of Publishing for the Americas, Baudouin Corman, relayed that the company will continue to support both pricing models. "We believe the mix of free to play and premium games is really our way to grow our base inside this business," said Corman.

The news comes at a time when many of the other big players in mobile gaming have shifted their business models to partial or complete support of freemium titles. Last year mobile analytics firm Flurry found that freemium titles yield two-thirds of App Store gaming revenues, a sharp increase from previous years.

Last month Electronic Arts Senior Vice President and Group General Manager Nick Earl admitted to AllThingsD that the company was late to make the transition from selling premium titles to freemium games. In April, Activision Publishing launched its first freemium title, with the company's vice president of mobile, Greg Canessa, telling Venture Beat, "It is a part of a larger strategy and a significant move. You'll see more of this to come. Activision as a company is looking at this space very carefully."

Glu Mobile more than two years ago switched its business completely from premium games to freemium games.

Corman clarified that even Gameloft's premium titles have some freemium aspects to them. Racing game Asphalt 7, for example, costs 99 cents and gives the user the "full experience," but it also offers additional in-app purchasing options. In contrast, The Amazing Spiderman, another Gameloft title, sells for a steep $6.99 through Google Play and the Apple App Store, but the title appears to be doing well based on its app store rankings.

Gameloft's success with its free titles such as Urban Crime and Six Guns hasn't been shabby either. Corman reported, "In terms of revenue, we are extremely satisfied with the results we've had so far with our free-to-play games."

He cited the success of Gameloft's Let's Golf series. Gameloft offered Let's Golf 2 as a premium title and the follow-up, Let's Golf 3 as a freemium title, to compare the two pricing models. Corman said that Let's Golf 3 was much more interesting for the company than the premium version.

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Related articles:
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Forecast: In-game purchase revenues to reach $4.8B in 2016
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Flurry: Freemium titles yield two-thirds of App Store gaming revenues

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