Despite the size of the market, developers can already make more money on WP7 than Android

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We have had some very interesting stats via Xyologic showing that, despite the small size of the Windows phone 7 marketplace, developers can already earn more money on the new platform, due to two important factors – Windows Phone 7 users are more prepared to pay for apps, and prices are a lot higher on Windows Phone 7 than Android.

For the three apps which appear in the monthly top 15 list according to Xyologic, the revenue from the Windows phone 7 apps are regularly close or even higher. 

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Even Need for Speed, which saw 600% more downloads on Android than Windows phone 7, only had 50% more earnings, and of course Windows Phone 7 had the old version of Need for Speed, while Android had the latest version.

The Android stats are also from the holiday season December 2010, while the stats for Windows phone 7 is from January 2011.

The message is clearly that there is no need to take the wait and see approach – if you are considering selling an app on Android, you may as well consider Windows phone 7 also.  You may even earn more.

Via InsideMobileApps and MobilityDigest.com

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Site Admin and Windows Phone enthusiast, he has been using Windows Mobile devices since before they were called PocketPC’s. He is currently sporting a HTC 7 Trophy.

  • http://twitter.com/That1guyty @That1guyty

    Yeah, that's cool and all, but why are our versions more expensive? Seems like a rip off to me.

    • http://wmpoweruser.com wmpoweruser

      So developers will bother supporting the platform? Its the price users pay for choosing a new platform. As the size of the addressable market grows, prices should come down.

      • http://twitter.com/That1guyty @That1guyty

        That makes sense. I mean, it is a pretty good incentive for devs to create for the platform, and I think they're doing a great job. The high prices have detracted me from purchasing some games though. Especially the ones I already bought on IOS for 99 cents. But, I guess that's the risk of being an early adopter.

    • Alan Strangis

      The only reason Fruit Ninja etc are more expensive is that they are Xbox Live games, which have to be certified. There's additional testing for QA and making sure Achievements are balanced etc…

      Non Xbox Live games are also doing pretty well, and many of those can be found for $0.99 or even free… look for the article from the guy who did Impossible Shoota.

      • Lennard

        Impossible shoota = sweet game

        my friend and I was challenging each other with that game, after 8 24oz beers each we were still trying to get the highest score. lol not a good undertaking while tipsy on beer. lol, we all had fun though.

        one of the funny parts was that one of my friend had an android, the evo and was trying to get everyone to play angrybirds, but they all shrugged it off cause everyone wanted impossible shoota. lol.
        I give props to the guy who made, he surely added to the night of fun.

    • Doffen

      Xbox Live.

    • http://twitter.com/MartDeGra @MartDeGra

      for real man even de blob which looks better on wp7 is .99 cent on the iphone on wp7 its 3.49 or 7.49 dats a biggggg difference

  • David

    I'm an HD7 owner and an avid WP7 supporter and I can see that your logic here is unsound. The only reason WP7 owners are willing to pay high prices is because there is no choice. You want a game and you pay $2.99, $3.99, $6.99, etc. or you don't get it. There are so many free alternatives in Android that prices have to be cheaper. If you flood the WP7 market with more developers, there is more competition, creating a better environment for WP7 consumers (ie:cheaper prices), but a worse environment for WP7 developers (ie:cheaper prices).

    • Alan Strangis

      The WP7 marketplace has a lot of developers, and the marketplace is growing as fast as the Apple App Store did.

      The most interesting metric is comparing the sales of Fruit Ninja, a popular game, on every mobile platform. Even if Fruit Ninja was lowered to $0.99 on WP7, it would have sold more, and with a MUCH smaller install base. There are also Fruit Ninja style clones available on both platforms.

      If I were an app maker, I'd be hoping that WP7 marketshare grows, because people are willing to pay for well-made apps.

    • http://wmpoweruser.com wmpoweruser

      I believe this is why Microsoft created the Xbox Live tier, to prevent that aspect of "race to the bottom."

    • Rico

      Bingo.

      We're starved for content because there's so few games with high production values as well as good gameplay, so developers can charge more. Sure, the fact that Xbox Live will naturally cost more, but those natural costs will also decline when there's more competition in the marketplace. And until we get some Xbox Live games that offer competitive play, I'll be passing on many of them. The big draw of Xbox Live on the console was the ability to play other players online. I'm sure it'll be the same on the phone.

      I know it's still very early in the game, but I'd love to see MS developing some solid multiplayer Live games to draw people to the service. If one of those was a simple game like Uno (Live enabled, but not for gameplay), I would've picked it up by now. Until then, I'll continue to play Spell It! and Alpha Jax.

    • Charles Keledjian

      Yes, however, THE OTHER reason why apps are cheaper in Android is not because they have more apps, it is because they have fewer people WILLING TO PAY for them and instead cheating, jailbraking, etc. It all comes with Android's Linux legacy of 'open source means free', with people unwilling to pay for anything.

    • Heroy Marcus

      This is the mentality apple made for mobile gaming android follows. "Cheaper is better!" maybe for casual one minuters. But people who play games care more about the quality of the games. When the market is flooded with competition, what game developers should do is try to make better games than lowering prices. A better environment for consumer is a place where we can buy good products, not just cheaper prices. I, my self was fairly bitter about WP7 having higher prices for games, but reconsidering my thirst for good games I'm willing to pay these prices. coz if you think logically, an average smartphone user pays for a morning coffee more than this. Having said that WP7 must offer some premium good looking games for WP7, coz they're mostly rehashing the games that came out for iphone(which were then recycled for android). Just a single halo or CoD branded game can increase WP7 market share percentage by several digits. At the moment WP7 exclusive game offering falls behind compared to iOS offerings like Real Racing 2, Infinity Blade and Rage HD. But I don't think a smart developer would stick to iOS, for an example look at real racing 2. a very premium game that looks better than any mobile game ever released but had to lower its initial $10 price tag to $5 because of relatively none bought it compared to angry birds. This might sound a good deal but its bad if you expect to see better games with higher budgets.

  • mamacita42

    Mama always told me cheaper isn't always better.

  • Brian

    The fact that paid apps haven't worked well on Android is a problem that Google has acknowledged (and pledged to fix). Ad supported apps, however, have been big money makers on Android – WP7 isn't even in the same league.

  • reviewdevs

    How did you get those numbers in the first place. Also, I thought we would see how much downloads this app marketplace has gotten. I believe it's more than Palm's app catalog.

  • http://www.facebook.com/people/Milad-Bazzaz/100000479683479 Milad Bazzaz

    when I see the rip off with the prices…then I wish to jailbreak my phone and own the devs by using every app for free…I really have no problem to pay for an app if its reasonable but when its 3 times as expensive, then it's highway robbery…

    and when it comes to robbery….I'm taking bets that the developers of those apps are going to lose eventually by pissing off some hackers with their prices.

    • http://wmpoweruser.com wmpoweruser

      Is it fair to charge more for groceries on an remote island than the mainland due to added transportation costs? Because at the moment Windows Phone 7 is a remote island, and its users have to pay more for services.

      For the same developer effort, developers still want to earn the same money, no matter the platform. It is as simple as that.

      • Joseph Heath Wallis

        BS. Microsoft has artificially set the minimum price of xbl games to 2.99. It is BA and has no justification other than to artificially pad revenue numbers.

        • http://twitter.com/PESMERGA7 @PESMERGA7

          Not really, it's just smart business. MS at the beginning had most of those xboxlive game apps selling at $4.99-$6.99 at the start of their WP7 marketplace. After a few weeks, most of those prices went down to the $2.99 range and then they started seeing good selling numbers.

          You can see that by the fact that most of the top 20 apps being sold are Xbox Live games for WP7. It seems that $2.99 is the sweet spot that most people are willing to pay for a game that has achievements and Microsoft's certification.

          Yes they could lower the price to compete with Android prices, but why should they? The numbers tell that $2.99 will probably be the norm for new games. I'd figure that over time the current games will go down to that .99 cent price after they no longer sell any more at that $2.99 price tag.

          If $2.99 was too much to ask, then the top 20 would be dominated by other apps from independent developers that most likely ask for .99 cents for their app.

      • Wayne

        You can't compare it that way dude….. So what if it is on a remote island??? But the groceries you buying are just the same on the Android island! Why spend so much more when you can spend lesser on the Android island?

        This is truely a rip off from what I see…. Not like the games are having more stages etc etc. And the Fruit Ninja is looking so much lower resolution than on the iPhone.

        • http://wmpoweruser.com wmpoweruser

          Well, if you choose to live on a remote island, it comes with consequences, but obviously also benefits.

          Despite the more expensive games on WP7, the ones on Android may be cheaper, but do not have Xbox Live for example.

          • Wayne

            Well, you do have your points. However, just having the Xbox Live branding will need to hike the price so much higher? Or Xbox fans are easier to be milked for cash?

            Just because it is on a remote island, and the consumers will need to offer a higher prices for apps is not a valid point. MS should make sure that the island is no longer remote and not milking its supporters.

      • Jack

        I have to disagree here.

        IMO this comparision is a bit off.

        WP7 is a new platform, not exactly the next sure "hit" and definitely not with a lot of supporters right now. Asking for a premium price makes no sense, especially since those apps are easier to develop on the windows phone platform than on Android.

        Microsoft has always had notoriously high prices for apps and at the end of the day, why should people go with WP7? Android has more apps, cheaper apps, more supporters, more features, more freedom etc. etc. WP7 cannot afford to rip off those few fans they have. thats bad business, period.

    • BCH

      Unbelievable. If it's too expensive for you, then don't buy it. Or get an Android if you think the games are cheaper on that platform. The idea that you have a right to software without paying for it, i.e. stealing it, while simultaneously complaining about "robbery" illustrates much of what is wrong with things today. No offense.

    • drunkinected

      Wait, you are telling me that you are willing to steal something that:

      - took months to develop
      - in XBL games will give you achievements, letterboards, integration with (some) other console games
      - will help support a brand new platform

      …because they cost between a grande frappuccino and 1 oz of a crappy whiskey?

      As BCH said, you really should change platforms.

    • Equality 7-2521

      You clearly lack even a child's understanding of basic property rights. By what standard do you consider it appropriate to steal the intellectual property of every software developer whose prices you deem excessive? You used the term "reasonable", yet your statements point to obvious deficits in that area. To equate "robbery" (theft by force) with trade (voluntary exchange between consumer and developer) is, at best, baffling. At worst, it's a gross inversion of proper ethics.

  • http://twitter.com/thedavidk @thedavidk

    The ad revenue that's possible on Windows Phone could be exactly the same. You can use Google ads in WP7 games. Also, if you go with MS's ads then they have the same payouts as Google ads anyway (and easy controls). In the end, those banners in games are annoying so paying $1 (really a cup of coffee) to play a game full screen is worth it. I don't want a 3.6" screen- I want a 4" screen, so let me use it all.

  • Bob

    The bottom line is that a 4 month old platform is rivaling app sales on 2+ year old platform. Not a good sign for Android.

    • AndroidFan

      Rivaling sales is not quite accurate. The ad-supported model is what seems to work best for popular games on Android. Here is an interesting take on the situation from the perspective of Rovio (Angry Birds developers) who claim they'll be hitting a million $ per month from Android ad revenue:
      http://www.intomobile.com/2010/12/03/angry-birds-

      • http://wmpoweruser.com wmpoweruser

        Look at this stats from the SPB survey from late last year. Unlike Android users Windows phone 7 users, like iOS users, are prepared to pay for apps.

        Free vs Paid Software. What do you prefer?
        PlatformPaidFree with ads
        Android49%51%
        iOS61%39%
        Windows Phone 761%39%

        http://spb.com/press/spb-survey-2010.html

        • drunkinected

          I would say WP7 users are inclined rather than prepared to pay in general. In my XBL list, out of the 11 WP7 users (all XBL gold), 7 are also Zune pass subscribers.
          Maybe there are free ways to get similar gaming and music experience on android but I highly doubt it's as integrated, simple and efficient as in those 2 services… and that IS worth my money.
          Personally, I never did nor intend to keep an ad supported app or game as I have very little tolerance for advertisement in general.

  • Matt

    I think there is a missing factor here, these are XBox Live titles… Indie games typically don't have the XBox Live endorsement… so they're buried below these titles…

  • After Forever

    After reading this 'cough, cough' article, I am thinking I'd be money ahead not purchasing a WP7.

  • Droidster

    Wow, I guess it is the case of "I better milk more from the stupid cows before the farm shuts down"

    I think I can "understand" a bit, xbox fanboys are so hooked on their xbox live games, they need to play in the toilet, play while walking, play on the train, play while having meals, maybe even play during a company meeting.

  • BetterFruit

    I know I know!!! Like the fruit ninja, it is more expensive because if you see carefully, you will notice the fruits looks more juicy because they used better soil to plant it! That's why the game is more expensive on WP7 than others.

  • http://www.entwickler-x.de Thomas Claus

    I dom´t think this statistics ar right. If you look at android market, then you can see that "active installs" of Fruit Ninja is 100k-500k, so this purchases here are false (17900), perhaps this is just this month?? We are Android developers (WP7 too) and in Android Market you can also see the download numbers, the numbers counts the purchases in fullversion including the people who give back the game. At Fruit Ninja there is a Download Number in Market greater 250000 (then the market stops counting, purchases also can be 1Million). We have with our little games just 15% of people who want to get back the money, Fruit Ninja is much popular so i dont think that from more than 250.000 Peoples gife 230K people the game back ;)

    Here you can see the active installs: (purchased version from peoples who play with active data connection) http://market.android.com/details?id=com.halfbric

    WP7 is a great Platform, but more mone is to make at android. We have a little game called "Blox" on both platforms, on WP7 we sold just a few, Android a few hundred.
    http://www.entwickler-x.de/windowsphone http://www.entwickler-x.de/android

    • http://wmpoweruser.com wmpoweruser

      Yes, its for a month only.

  • http://www.entwickler-x.de Thomas Claus

    … For monthly i think its fine for both platforms (dreaming from such numbers) ;)

  • http://clkus.net Eldon

    At the end of te day. As long as Microsoft handles things right, and don't blow it with WP7. Things will level out for all. There will be more developers for WP7 and app prices will go down. The will be free apps that take advantage of ADs revenu.
    The advantage that MS will have over all others is more developers and better tools. the disavantage is smaller market.

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