Freemium and Sharing

Perhaps the most consequential change to mobile games has been the inception of “freemium” models, which derive partially from the arcades of the 1980s and “shareware” created for early computer games. In the freemium model, typified by casual games like Candy Crush Saga, players are given the game for free but make in-game purchases in order to either continue play and/or master the game. Under this model, sharing the game with friends can often net rewards similar to a purchase. Players can purchase virtual goods for bragging rights or disburse them among friends. Even wagering can be part of the activity, particularly within gambling games.

The freemium model deviates from traditional subscriptions in several ways. Freemium purchases are voluntary, with an infinitesimal set of users known as “whales,” supporting the majority.⁵⁰ That is to say that half of mobile game earnings come from the 0.15 percent of users who pay. Premium content is meant to supplement, not replace, the experience of gameplay for players who may make infrequent, rather than constant, use of it. Content is also carefully priced—usually not too expensively—and keenly monitored, while it’s changed often to adapt to user activity. In other words, close attention to analytics informs and alters what and how people pay. Still, freemium games have been criticized for their inability to hold interest over time. At their best, freemiums sustain commerce among a minority of users who invest more time and effort into the product as compared to the majority of players.