In 2012, the cost per install on iOS increased 22% from the beginning to the end of the year (around $2)
The average conversion rate (from a non-spending to a spending user) in October was 4.68%
The average revenue per paying user for mobile in the US is $21.45
CPI is expected to be between $7-$8 this holiday season
All this is to say that acquisition costs are now greater than the LTV (Lifetime Value) of the acquired user. To combat this, mobile game developers should look more deeply at cross-promotional opportunities with other developers of similar titles. Exploring acquisition from a rev share perspective should be more cost effective than buying them in the open market and in our experience, the engagement is higher with users acquired through cross-promotions.
According to NPD, and their latest report, Core Gaming 2013, within the US population ages 9 and older, almost half play video games on core gaming device.
Only 14 percent, or 37.5 million people, would be considered a core gamer*
Ages 9-17 are most likely to be a core gamer (26 percent)
Ages 18-34 are the next largest group of core gamers (21 percent)
Over the past year
88 percent of core gamers state they purchased new physical games
78 percent purchased physical used games
70 percent purchased digital full games
*Core Gamers were described as playing Action, Adventure, Fighting, Flight, Massively Multi-Player, Racing, Real Time Strategy, Role-Playing, Shooter, or Sport games on a PlayStation 3, Xbox 360, PC or a Mac, and spending 5 hours or more per week gaming on any of these devices.
A new research firm called FADE has released estimated sales numbers for the top XBLA games of 2012. Here’s their estimates in terms of units and revenue on the XBLA platform. From personal experience, hitting the 10K, 50K and 100K sales marks on XBLA has become harder over time since the store has been redesigned multiple times. The effect has been XBLA becoming an increasingly less effective sales channel since the majority of traffic is on the platform to play movies via Netflix:
Estimated Top Ten XBLA Titles in 2012, Ordered by Gross Revenues
Minecraft (4J Studios) (Notchtacular) – 4,997,000 Units / $97,388,000
Trials Evolution (RedLynx, LTD) (owned by Ubisoft) – 1,002,000 Units / $14,298,000
The Walking Dead (TellTale Games) (Yeah! Dan Connors and Kevin Bruner) – 2,615,000 Units / $10,277,000
Counterstrike: GO (Valve) – 273,000 Units / $3,973,000
Castle Crashers (The Behemoth) – 252,000 Units / $3,778,000
Gotham City Impostors (Monolith Productions) (A Warner company) – 258,000 / $3,698,000
I Am Alive (Ubisoft) – 245,000 Units / $3,609,000
Tony Hawk’s PS HD (Robomodo) – 226,000 Units / $3,261,000
Alan Wake’s American Nightmare (Remedy Entertainment) (Matias and Oskari and the crew making awesome!) – 206,000 Units / $2,903,000
Trials HD (RedLynx, LTD) (Ubisoft SD) – 203,000 / $2,799,000
According to Kantar Worldpanel ComTech: iOS was the top selling smartphone platform in the U.S, for the 12 week period ending November 25th, 2012. iPhone 5 helped push the number past 50 percent, the first time iOS has hit that level.