The realm of paid iOS titles is quickly becoming occupied by large publishers like Electronic Arts and Gameloft. This pushed smaller companies like Fuse Powered into the freemium range, who looked at it as an opportunity to change its entire approach to the mobile games business.
“That’s one of the things that motivated us to transition our business model,” said Fuse Powered CEO Jon Walsh. “That idea that a big publisher can drop prices, take a hit and fill up all those top slots. That said two things: paid games are always going to have that risk. The big publisher is basically selling at an extremely low cost to gain market share and if it works for them they are going to continue to do it. So we can either complain about it or make sure our business model works around it. That’s where the freemium model works for us.”
“It also said to us that we need to go towards a publishing model where we have a base of really avid players that are enjoying our games so that when we bring out more stuff we don’t need to get into those top 25 positions in the App Store, we can deliver directly to the existing player base,” said Walsh. “That will be a continued risk for people selling 99 cent games.”
Source: GamesIndustry.biz
