Let’s start by saying that I spend a lot of my free time playing video games. Furthermore all of the games I play are free. To me, I cannot justify paying for a video game that I may not even enjoy after the first 10 minutes. Unfortunately for game producers, I’m not the only person who shares this mindset. As a result, these producer’s have had to come up with a new system that targets the large segment of cheap gamers…

The solution? Freemium games! Allow me to explain. A freemium game is a game that is entirely free to download and play. What differs this model from a free trial is the fact that freemiums are in essence the complete game, not just a fraction of the real thing like trial versions. They earn profits not through sales, but through “micro-transactions” inside the game. These “micro-transactions” can be a variety of forms – from merely changing your game or character aesthetically to providing a competitive advantage. In other words, instead of paying upfront like traditional games, you “pay-as-you-go”. The best examples of this model are Farmville and it’s many variants. In these games, your objective is to build the farm/castle/city/zoo of your dreams, but you only have a limited amount of resources per day and building requires time. However, you may purchase additional resources or speed up building times through in game purchases.

The definition of a freemium game.

The success of freemium games has been nothing short of phenomenal. According to the blog GetElastic, a whopping 72% of total revenue from Apple’s App Store comes from freemium games! For more in-depth statistics regarding freemium games, visit the link at http://www.getelastic.com/economics-of-freemium-mobile-gaming/. Who would have thought that catering to conservative buyers would be so profitable?