Market News Point

The gaming industry has undergone digital content revolution in the past few years. Considering the outcome, the uses and business models in this industry have also changed, through the effect of disintermediation, changes in the pricing structure, and deflated production costs. From the supplier perspective freemium games is one of the preferred routes, as it holds the majority of download volume. The dynamic nature of gaming industry has also brought significant change to the consumer mind sets, while the game developers are compelled to update themselves. The game developers not operating upon the freemium model have suffered loss of their market share, in the recent years. The freemium games developer earns a large part of their revenue from advertisements, in app purchase and virtual item sale. The majority of revenue comes from app purchase, which accounts for 70% to 80% of the total revenue of the industry. The virtual item sale (also referred to as micro transaction) is ot...