One-Third of Mobile Games Are Free

GameBiz Daily writes about a recent report from Telephia on the mobile games market that highlight some trends in mobile gaming on cell phones. The report found that:

• 64 percent of all games downloaded in Q2 2005 are revenue-generating purchases while the remaining 36 percent are free
• puzzle/strategy games had the highest percentage of free downloads (48 percent) and the strongest revenue performance, with a 27 percent share and the second-highest average paid price of $4.27 per download.

Kanishka Agarwal at Telephia said, "At this early stage of the game, publishers are employing different strategies with pricing and promotional incentives to learn what will gain the most traction with consumers and deliver the best revenue performance outcome. Accurate data on adoption and price elasticity will play an important role in these pricing strategy decisions."