Are in-app purchases a good or bad thing for Android?

November 23, 2009 | by Andrew Kameka

The Android Market currently doesn’t enable in-app purchases, but Chinese company Urbian works around that issue by linking to downloadable upgrades available in the Android Market. While its Android app Ringz is a free puzzle game, getting expansion packs that include more levels requires a $1.99 purchase. Is this a clever way to gain more money or another failed attempt at monetizing Android?

Android has not been financially rewarding to anyone but a handful of devs who have had to watch iPhone sales skyrocket and earn nice paychecks for their creators. Will Ringz’s upgrade strategy get Android users to open up the purse strings more often? This sales pitch is similar to the Lite vs. Full strategy that has dominated the Android Market: release a free app that gets popular, and then offer a paid version with more services. One major difference is that Ringz links to the “full” version in the app and will continue charging more every time it has enough content to warrant a new level of expansion.

I’m not big into MMORPG, but I’m told “expansion packs” are common in World of Warcraft and similar titles. That makes me think Android gamers will be more acceptable of this practice; I’m not sure how effective it will be in other app categories. For instance, Locale is a great free app I use and I’d be willing to pay for an advanced version, but I haven’t purchased any of its plug-ins that add extra features for 99 cents. I don’t like the idea of having to shell out a buck every time a new feature can be added to the app. Why can’t I just pay the $2.99 upfront and get updates for free? That may not be the most financially rewarding move for a developer, but that’s the view I have as a consumer not wanting to pay money every time you add a new feature.

It’s too early to tell if Urbian’s strategy for Ringz will work but it’s something worth tracking. If Ringz is successful financially, you can count on more devs taking the expansion pack approach.

Android, commentary, developers, paid apps, questions

4 Comments

greenskye says:

November 23, 2009 at 11:56 am

I think that there is a happy medium here. The idea of purchasable plug-ins for an app is a great way to off-load development costs to 3rd parties while also creating a developer micro-community around your app (I.e. Locale). As far as expansion packs go, they are a great idea in games as long as you don’t get too stingy with how the game is divided. No one is going to pay $.99 per level, but if you show some generosity in the beginning and gain a following it isn’t a bad way to go. Consumers should be happy with the expansion pack models because you only have to buy the levels that interest you and it encourages the dev to keep his app updated and fresh with new content.
Michael Wilson says:

November 23, 2009 at 5:08 pm

Enable the pricing model, let the market figure it out. Not sure how else you'd find out. *shrug*
Eva Peters says:

June 21, 2010 at 11:42 am

It is really OK to offer the basic edition of a game or app for free and charge for the advanced edition. My recent post Toshiba Portégé A605-P200 Laptop
Pink Laptops says:

July 22, 2010 at 12:51 pm

I agree with Eva here. I think it is perfectly fine to have the basic version for free and have to pay for something bit more advanced. After all you want something new when you've mastered the original!

Android Apps and News

Thoughts on the Samsung Galaxy S 4 and Unpacked 2013

Diztronic case review for LG Nexus 4

Why I decided to purchase the Nexus 4

Samsung Galaxy Note 2 - Verizon Remix Version

HTC DROID DNA Review

Samsung Galaxy Note II Review

Android News