Apple and Google continue to fight for dominance in the mobile OS space by bringing exclusive content to respective iOS and Android mobile platforms in exchange for promotional perks.
Apple and Google, two most powerful companies in the tech industry, are encouraging game developers to bring their popular game titles first on mobile devices powered by respective iOS and Android operating systems. The news was first reported by Wall Street Journal citing people familiar with the matter, who said the two Silicon Valley tech conglomerates are offering promotional perks to developers in exchange for first rights on a game title.
According to the WSJ report Sunday, both tech companies are offering premium placement of new game titles on respective app stores' home pages and feature lists if developers exclusively launch a new game on either platform. For instance, Apple struck a deal with Electronics Arts last August to promote the sequel of the popular zombie-survival strategy game "Plants vs. Zombies" on Apple App Store. The game appeared exclusively for iOS device users for about two months, before it was released on Android in October, last year.
WSJ also highlighted a similar arrangement Apple had with ZeptoLab that involved the sequel of popular puzzle game "Cut the Rope." The developer of the puzzle game agreed to give three months of exclusive access on Apple App Store in exchange for promoting the game extensively, sources revealed.
The marketing attempts of both Google and Apple show intensive competition between the two in the mobile space, reports WSJ. Apps have widely replaced mobile browsers and games now take a lion's share in app engagement, hence desperate measures by the tech companies are called for.
A joint survey last year by App Annie and IHS research firms revealed that a massive $16 billion was spent on mobile apps and games. Another survey by IDC in February revealed nearly 80 percent of global smartphone shipments in 2013 were powered by Google's Android operating system, making it the most dominant mobile OS compared to iOS (15.2 percent), Windows Phone (3.3 percent) and BlackBerry (1.9 percent). If game apps represent a major revenue source for both companies, using new techniques to boost profits is logical. The report also adds that Apple does not offer money for game exclusives, but offers marketing and promotional assistance, something game developers can use to fetch more downloads and demand.
Several apps use in-app purchases as they offer more attraction than the one-time purchase models. Users are more willing to spend small amounts in order to unlock certain game levels or objects within the game rather than paying huge sums upfront. Most top grossing apps in either app store are free to download and play, but require a small fee to continue after a certain stage.
Gaming on mobiles is a major attraction for high-end smartphones in the market. "Videogames are critical applications," Patrick Mork, a former director of global marketing for Google's app store told WSJ. "Not only is it where people are spending their time and money, they also showcase the power of computing on their devices."
