Rovio Delists Last Paid ‘Angry Birds’ Game Because The Free Version Is More Profitable
from the but-free-can't-work dept
You have to love a story that comes full circle after all these many years. For a long, long time, we at Techdirt have been advocating for business models that make use of free content. The idea, which can certainly be counterintuitive, is that if you make parts of your product free to the customer, particularly the parts that are reproducable at zero marginal cost, then you can build in value-adds one way or another that you can charge for. Whatever you lose in not charging for some content, you can make it up via an increase in reach and/or market share, assuming you do it well. At this point, the examples of such business models are ubiquitous, but it wasn’t all that long ago that you would hear executives from various industries flatout state publicly that “nobody can make money from ‘free’.”
Ah, the irony. Rovio, the company behind the Angry Birds franchise, just shut down its last remaining paid version of the games. Why? According to Rovio, the paid version was interfering with the much more profitable free versions of its games.
In a tweeted statement earlier this week, though, Rovio announced that it is delisting Rovio Classics: Angry Birds from the Google Play Store and renaming the game Red’s First Flight on the iOS App Store (presumably to make it less findable in an “Angry Birds” search). That’s because of the game’s “impact on our wider games portfolio,” Rovio said, including “live” titles such as Angry Birds 2, Angry Birds Friends, and Angry Birds Journey.
All of those other Angry Birds games are free-to-play titles in which players can earn extra lives or helpful items by purchasing in-game currency or watching short video ads. Those changes were roundly criticized when they were introduced into the Angry Birds universe, but that didn’t stop the free-to-play games from becoming highly lucrative for Rovio.
How far we’ve come, from “you can’t make money from free” to “our paid apps are keeping us from making even more money from free!” And it’s not for lack of the paid product being popular. According to Ars Technica, Rovio Classics: Angry Birds is currently the 2nd best-selling app that requires payment in Apple’s App Store, except:
But that chart-topping position translates to just $30,000 in estimated monthly revenue, according to Sensor Tower estimates. The free-to-play Angry Birds 2, meanwhile, attracted 900,000 new free-to-play downloads last month and raked in over $9 million in revenue, according to those same Sensor Tower estimates. But that strong revenue number is only enough to make Angry Birds 2 the 74th highest-grossing iOS game on the current iOS charts.
The post notes that this shows that the general public is not willing to pay for these kinds of apps at scale… but that’s really only part of the story. It is true that the public has become accustomed to freemium-style mobile games, but that’s only because so many of them have worked so well from companies that have pulled off the business model equation correctly.
Put another way, if these games were absolute garbage, no amount of free content would be enough to get the public to play them. In addition, if the paid-for portions of the game didn’t provide enough value, or if the embedded advertising were too intrusive or annoying, then people would likewise not play these games. To make $9 million in revenue from just one of these games requires those sweet-spots to have been hit, which Rovio did.
So much so, that asking the public to pay for the base content hurts the bottom line.
Filed Under: angry birds, business models, free, free to play, video games
Companies: rovio
Comments on “Rovio Delists Last Paid ‘Angry Birds’ Game Because The Free Version Is More Profitable”
And yet… I still refuse to play freemium games where you need to pay to win. I’d rather pay up-front for the game and then spend the rest of my time playing the game and being entertained, NOT grinding or waiting on loot boxes to get past the intentional stall point in the game.
I also detest subscriptions where I have to keep paying to artificially keep using content. I’m fine with subscriptions for new content, but not for work-already-completed.
good
TP’s head a splode.gif
The problem with this is that “free” games on mobile tend to be filled to the brim with bullshit predatory microtransactions. Rovio’s games are no exception. Mobile gamers can and will pay for predatory garbage, it’s why the mobile gaming ecosystem is filled with free-to-play trash that inexplicably makes money.
It’s very much a monkey’s paw that makes me vastly prefer just paying a premium up-front. There are good free to play games with actual value to stuff you can pay for, but those are extremely few and far between on mobile. And don’t get me started on ‘gacha’ games, which are basically just games with almost literal gambling included.
You aren't wrong, but...
I wish free didn’t “work” like this…
When it comes to freemium games, I find I really don’t like them, because of how they change the developer’s incentive. The developer of a paid game has a clear incentive: make the best, most satisfying (for whatever definition they care to give that word) game. The story may set up for a sequals, but the game will likely sell best if it’s a reasonably complete package.
Compare that to a free to play developer, making a game where (at least in theory) the player never has to pay. They need to create a good game, yes. But it can’t be too good, or no one will pay. So they have to build some level of badness in, and sell the solution. Usually, this comes in the form of difficulty spikes or excessive grinding. And the most efficient way to get people to pay to “skip the grind” is laser targeted skinner box design, and gambling mechanics. It’s made a lot of games intolerable for me.
Not exactly a 'win' to be celebrating
Uhhh, yay predatory microtransactions and the removal of the one-time-purchase version that was giving people other options?
three cheers for predatory microtransactions!
hip! hip!
why is everyone looking at me like that?
Copyright protects even those who are not “awesome.”
It’s safe to say that Rovio flew too close to the sun (or in this case, launched too close to the sun).
“We can’t make money off our exploitative, predatory business practices in our new products because we made a superior competing product that you buy and own which we cannot cram full of ads and paywalls retroactively”
“if the paid-for portions of the game didn’t provide enough value, or if the embedded advertising were too intrusive or annoying, then people would likewise not play these games.”
If the mafia didn’t provide enough value in the form of not having your kneecaps broken, people wouldn’t keep giving them money when they demand it
I eagerly await the enxt article in this series....
….on how John Deere are providing SO MUCH VALUE that they simply had to stop selling easily maintainable tractors that people preferred because their new business model is just so dang successful at raking in more money.
So let me get this straight, this is basically the same situation as in my childhood of Disney “vaulting” their VHS releases because they want recurrent revenue from people watching them on TV with ads, right?
I have to agree with the other commenters here that it’s negligent that the article doesn’t mention how the reason (most) ‘free’ mobile games are more profitable is largely due to predatory practices like loot boxes, or in the case of AB2, so-called ‘free-to-wait’ mechanics. In both cases the thing making players pay money is not added value but artificial restrictions placed upon the game by the developer.
It is possible to make a successful free game without those mechanics, such as a free game game where you can purchase cosmetics directly instead of gambling on a loot box, but highlighting this specific case seems misguided considering the above.
Re:
Straight up removing value and then forcing people to make even larger recurring payments. It’s hardly that different to the cable TV model that the balkanisation of streaming services is now emulating.
“this is what makes us the most money” =/= “this is what provides the most value to the consumer”
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All those "Free to play" Angry Bird games are basically unplayable
In general, “free to play” games on mobile just suck and I would gladly just give a lump sum to make all the nonsense go away. (I do like Apple Arcade for that reason) The Rovio ones are especially unplayable, just awful.
So if you guys are bragging about being “right” on this that’s kinda sad, really. Because the “free” versions may make more money, but so do slot machines, and it’s just a very de-humanizing experience all around.
Honestly “free to play” has mostly killed off mobile gaming.
Re:
You’re a very de-humanizing experience all around.
OH SNAP
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The mobile game market was a mistake
The App Store and Play Store have created an environment where you are literally screwing yourself if you’re not making your game as unplayable as possible with microtransactions and other pay-to-win crap. How did we get here? What on earth happened?
Tim,
The issue ISN’T the fact that Rovio is taking down their paid version for the seemingly superior free version, considering that the Angry Birds franchise STARTED as a free game.
It’s that they’re taking down their PAID version for the ad-laden, psychology-abusing, pay-to-continue version of the game.
Even the “free-to-play” games without ads are not immune to the shitty trends that now dominate mobile gaming.
Re:
Also, promoting the wonders of late-stage capitalism isn’t something you were aiming for, but it is what the article implicitly promotes.
And the numbers DO back that up.
Really, techdirt?
This is literally the worst take I’ve ever seen after years of reading techdirt almost daily.
“Choice is bad” and “microtransactions and ads and pay-to-win are better than single-transaction and offline options”? Really?
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I love how basically EVERY commenter agrees on this.
“Yeah, free ‘works” but it also makes games awful and unplayable”
We all said a different version of that.
Thank you for sharing your thoughts on this topic. I completely agree with your perspective and think that it’s important to consider all sides of an issue before coming to a conclusion. Your insight and analysis really helped me to better understand the situation and I appreciate your well-written and thought-provoking comment. Keep up the great work!
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