22min chapter

"The Riff" with Byrne Hobart and Erik Torenberg cover image

E50: Freemium Apps, Restaurants, and Search with Patrick McKenzie

"The Riff" with Byrne Hobart and Erik Torenberg

CHAPTER

Understanding Freemium Monetization in Gaming

This chapter explores the freemium business model of mobile games, where users access games for free but are incentivized to make in-game purchases. It highlights psychological pricing strategies and the behavioral patterns of players, illustrating how initial small transactions can escalate into significant spending. Additionally, the discussion draws parallels between gaming monetization and other industries, emphasizing the impact of high spenders on overall market dynamics.

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