Posted tagged ‘ARPU’

The Mysterious Revenue Gap

March 5, 2010

One of the big questions with people looking at social games is, “sure they have lots of people playing, but how much money do they really make?”  The amazing thing is, there’s actually data available on the web to answer this.  For once entrepreneurs and other game developers aren’t left completely in the dark trying to figure out what they may reasonably make on their game.  And this data identifies not only a great revenue stream, but an interesting gap.

It turns out that the question isn’t whether these games are making money – the question is, why aren’t they making significantly more?  In fact there are similar games making as much as 5x or 10x more than social games currently are.  So why the gap? (more…)