According to mobile app intelligence provider, Priori Data, 4,648 app developers pocketed more than 1 million USD in revenue in 2016. That is quite an impressive number, although if one is to divide by the estimated 12m app developers, that makes for only 0.04% of all app developers.
So how does that compare to say the US population? Well, according to the IRS, about 400,000 US tax filers in 2014 made $1m or more, or approximately 0.42% of the people filing a return. Of course, not all app developers are from the US, but given the number of app millionaires income earners are at best only about a tenth of “regular” US millionaire income earners, it seems like app development is not for the faint at heart.
Newzoo does indeed point out that only the brave make money in F2P. Of the four thousand plus app developers who made over a million, 81% of them did so in games, and Free-to-play (F2P) is by far the dominant revenue model. What is the advise given based on Newzoo data? Increase the price of your digital goods:
(Source: Gamesindustry.biz)
According to Gamesindustry.biz, it’s all about being daring to charge more – and that games that charge twice as much tend to make twice as much revenue. Not exactly rocket science, and of course the game has to be good in order to justify the charge, but it apparently seems games developers should be charging more. Any price point lower than $2 seems to devalue a game.
There you go. Perhaps next year we will see that 9,000 app developers make over $1 million in revenue. One can always hope.
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