How IAPs Fuel Player Retention and Growth in F2P Games
Consider an experiment on a given game; IAP is turned on in one version, and in another, IAP is turned off. After one year, which version has more players? It's the one with IAPs on! Monetization increases engagement; far from a tax, it's a subsidy.In a rush to emphasize the unique low conversion and hyper-skewed nature of F2P, evidence rarely is presented as a time series. We often lament that "less than 1% of players pay!" but this isn't true on a time series basis. The retention rates of players who choose to pay are significantly different from those who do not. Over time, the share of DAU that's made at least one payment rises; it's also why we see ARPDAU rise. With enough time, payers outnumber nonpayers. Top games like Galaxy of Heroes or Summoner's War likely maintain 60-80% […]