in-app purchases
Latest
Google won't call games with in-app purchases free anymore (updated)
The European Commission has said that while Google addressed its concerns around games with in-app purchasing, Apple has yet to offer a strategy. Following hordes of complaints by outraged parents, the EU asked both companies to implement changes to the way they sell such apps in their stores. Those include not misleading consumers about supposedly "free" games, not "directly exhorting" children to buy in-game items, thoroughly informing customers about payment arrangements and forcing game-makers to provide contact information.
FTC sues Amazon over in-app purchase practices
The U.S. Federal Trade Commission has sued online retailer Amazon for refusing to change its framework for purchases made within its hosted mobile apps, according to a Reuters report. The lawsuit is an expected result of Amazon's denial of FTC-issued requests to change its in-app purchase policies. To meet FTC guidelines, Amazon would need to add another layer of password protection and overhaul its refund policies in order to curb in-app purchases made by children without parental permission. In a recent letter to the FTC, Amazon noted that it prefers to "defend our approach in court," rather than change its policies. The FTC's lawsuit seeks refunds for affected customers and a ban on unlimited purchases within Amazon apps. Apple issued more than $32.5 million in refunds to App Store customers following a similar FTC complaint earlier this year. [Image: Amazon]
The FTC is taking Amazon to court over its in-app purchase policies
Earlier this summer, the Federal Trade Commission (FTC) warned Amazon that if it didn't adopt a more Apple-like policy about in-app purchases, it might wind up in court. Now, it has. Today the FTC announced that it's seeking a court order requiring the online retailer to issue refunds to parents whose children ran wild with in-app purchases -- unauthorized charges, the FTC says, that racks up into the millions. Much of the alleged blame is focused on Amazon's past. According to the FTC, Amazon had almost no protection against unwanted in-app purchases in 2011, and has only implemented adequate consent framework recently. The government's concern seems to lie squarely on customers left in the lurch: Amazon's official policy says that all in-app purchases are non-refundable, and the exceptions to that policy are "unclear and confusing."
Amazon fighting FTC's demands over in-app purchases
Amazon has denied a Federal Trade Commission request to restrict add-on purchases made within its mobile applications, the Wall Street Journal reports. As part of the FTC's terms, Amazon would need to clearly warn users of real-money transactions within its applications, require password entry for in-app purchases, and overhaul its refund process to aid parents seeking recompense for unwanted purchases made by children. In a letter to the FTC this week, Amazon stated that it prefers to "defend our approach in court," rather than agreeing to change its terms and accept FTC-issued fines. "When customers told us their kids had made purchases they didn't want, we refunded those purchases," Amazon associate general counsel Andrew DeVore said in the company's mailed response to the FTC. Refuting the need to change company policy, DeVore noted that Amazon currently implements "prominent notice of in-app purchasing, effective parental controls and real-time notice of every in-app purchase." Apple issued $32.5 million in refunds to iTunes App Store customers earlier this year in response to a similar complaint from the FTC. The FTC has not yet responded to Amazon's latest statement. [Image: Amazon / Engadget]
Amazon refuses to bend to the FTC's demands over in-app purchases
The Federal Trade Commission (FTC) wants Amazon to update some of its policies regarding in-app purchases, but the retail giant is having none of it. According to documents obtained by the Wall Street Journal the company is facing a lawsuit that would require it to pay hefty fines and dramatically alter its record keeping and disclosure practices. In particular the government is concerned about purchases being made by children, but Amazon thinks its approach is sound. In fact, not only is the company refusing to change its rules, it said in a letter (PDF) that it's prepared to go to court.
ComiXology removes in-app purchases for iOS app after Amazon purchase
The digital comic book retailer ComiXology has been a massively profitable addition to the iOS landscape, but after a number of run-ins with Apple on content, the company is changing things up. On Saturday, April 26, ComiXology quietly announced some major changes to its iOS and Android apps. Android users were given a brand new in-app purchases interface with an improved cart system, but iOS users found an important feature had been removed; in-app purchases. From now on ComiXology readers using iOS devices will have to buy their digital comic issues via the company's website and then sync the titles to their device, completely bypassing the iOS marketplace. This method of purchases is significantly less direct from consumers, but it allows ComiXology to get around Apple's "morals" issues which have caused content to be blocked from sale in the iOS store in the past. There's just one issue; that option was always available to iOS ComiXology users, which means iOS users now have a more complicated process of buying their titles than before. For iPad or iPhone readers, there's really no good news here. Some creators, like Chris Roberson of Moneybrain Comics are thrilled with the changes. No longer allowing in-app purchases via iOS frees up the 30% cut that Apple made on sales made through their devices. In Roberson's eyes this means more money to go back to creators. I have always recommended people make their @Comixology purchases through the site and not the app, since creators get more money that way. - Chris Roberson (@chris_roberson) April 26, 2014 Now, readers will be spending the same amount on their @Comixology purchases, but the creators will be getting a bigger cut across the board - Chris Roberson (@chris_roberson) April 26, 2014 You'll notice he prefers that all users, not specifically iOS users, buy through the website. All in-app purchases through Android and Apple are subject to the same 30% cut of the profits, the money is just sent to different corporate overloads. So why did ComiXology kill in-app purchases for iOS devices, but expand its Android store with a new cart and other features? Perhaps it's this little fella. ComiXology was recently purchased by Amazon, and Amazon's Kindle Fire uses the Android platform. By making it harder to buy comics via the iPad, they've just managed to quietly prop up the Kindle Fire as the easiest option for comic readers thinking about which tablet is right for them. Of course this is simply conjecture on our part, but if there's anything we've learned from Captain America books it's that everything happens for a reason. Also, don't trust Nazis. To ease the transition for possibly sore readers, ComiXology is giving everyone who has ever made a purchase through the app a $5 credit as a thank you for sticking with them. As of right now, only the main ComiXology app for iOS has had in-app purchases removed; the ComiXology powered iOS apps for Marvel, DC, IDW, and Image are still allowing customers to buy books on their devices. ComiXology remains the best comic book reader and marketplace available for iOS users. Will these changes to ComiXology drive you to another digital comic retailer? Let us know in the comments. In the meantime here's ComiXology own quick guide for adding a link to their webstore on your iOS home screen. It's at least something.
Amazon gets rid of in-app comic book purchases in Comixology's iOS app (update: Comixology responds)
Ever try to buy a Kindle book through Amazon's iOS app? Good: then you understand how Jeff Bezos feels about giving Apple a 30 percent cut. Just two weeks after acquiring the comic-book store Comixology, Amazon is putting the kibosh on in-app purchases in its iOS app so that it can avoid paying Apple a commission. (You can still buy comics from the Android app.) As a result, the iPhone and iPad apps are being retired; you'll instead need to download a new version that forces you to purchase comics through Comixology's mobile website. Once you complete the transaction there, you can go back into the app and sync your account so that you download any new purchases. All told, then, it's just like buying Kindle books on iOS, which is to say, it's a less-than-seamless experience. As a peace offering, Amazon is offering a $5 credit to anyone who's ever bought anything at Comixology. You better hurry, though: that free money expires within 30 days. Update: We've since talked to Chip Mosher, Comixology's VP of Communications and Marketing, about the change. Here's what he had to say regarding the reason behind the removal of the digital storefront: "As we move to complete the acquisition with Amazon, we are shifting to the web-based purchasing model they've successfully used with the Kindle, which we expect will allow us to strike the best balance between prices, selection and customer experience. There are many advantages to shopping at comiXology.com. Because of the content restrictions our mobile partners have, shopping on the web provides even greater selection of comic books and graphic novels. iOS customers will now be able to save money with comiXology's exclusive web-only Bundles, take advantage of Subscription features and enjoy eGift Cards. We also made our website more tablet/mobile friendly on all devices to make the purchasing process that much easier. And in Safari on iOS, customers can easily save a shortcut to our webstore with the "Add to Home Screen" feature. In the new Android 3.6 upgrade we have a new comiXology in-app purchase system and a great new shopping cart, one of our most requested features. In the new app, customers may be prompted to update your payment information to continue purchasing books. This is a one-time action after which you can purchase inside the app." As for whether Marvel and DC apps will also have their digital storefronts removed -- both apps are powered by Comixology -- he said that "would be a better question for them." We've reached out to both Marvel and DC for a response.
Report: Freemium leads the charge among mobile devs, in-app ads on the rise
The "freemium" revenue model is currently the top monetization strategy for mobile developers, but in-app advertising is expected to grow in prominence over the next several years, according to a new report from mobile revenue analytics company App Annie (via VentureBeat). App Annie found that over 83 percent of the top 1,000 apps in the iTunes App Store and Google Play currently take the freemium approach to monetization. The survey additionally found that 92 percent of all revenue earned among its 2,000 surveyed developers arrived via in-app purchases in free-to-play games. A majority of users in free-to-play games will never make a single in-app purchase, however. 80 percent of App Annie's surveyed developers stated that less than five percent of users spent money within their freemium apps, corroborating earlier reports of low spending rates among players. While 58 percent of surveyed developers do not use advertising in their apps, App Annie predicts that in-app advertising revenue will surpass web-based ad earnings by 2017. Currently, only the top 75th to 90th percentile of developers earn more than $10,000 monthly from ad revenue, though outliers like the recent hit Flappy Bird have the potential to rake in more than $100,000 every month. [Image: App Annie]
Apple offering refunds for unauthorized in-app purchases, and other news for March 25, 2014
Apple has sent an email to users who have made recent in-app purchases (IAPs) announcing they can receive a refund for any unauthorized IAPs "made by a minor." The refund initiative is part of a consent decree Apple struck with the U.S. Federal Trade Commission. Users who wish to get IAP refunded must submit their request by April 15, 2014. The full email is below (via MacRumors): Dear iTunes account owner, Apple is committed to providing parents and kids with a great experience on the App Store. We review all app content before allowing it on our store, provide a wide range of age-appropriate content, and include parental controls in iOS to make it easy for parents to restrict or disable access to content. We've heard from some customers that it was too easy for their kids to make in-app purchases. As a result, we've improved controls for parents so they can better manage their children's purchases, or restrict them entirely. Additionally, we are offering refunds in certain cases. Please follow the steps to submit a refund request: Find your in-app purchase records. Check your email for iTunes receipts or use a computer to sign in to your iTunes account and view your Purchase History. Use this link to submit your refund request to Apple. Provide the requested information and enter "Refund for in-App Purchases made by a minor" in the Details section. Apple will review your request and contact you via email about your refund status. All refund requests must be submitted no later than April 15, 2015. In other news: Google has announced Google Now notifications are now available for Chrome users on desktops, including Macs. Pictures have leaked suggesting the long delayed flagship Apple retail store may be opening soon in Hanover, Germany. Apple has patented a new graphical interface for the visually impaired. Booq has released the Booqpad for iPad Air, a thin folio-type case that also includes a paper notebook. It's available starting at $60. It's amazingly flexible, using magnets for magic.
Apple now warns users of in-app purchase settings in iOS 7.1
Sure, Apple's legal scuffle over in-app purchases made by misbehaving youngsters has ended, but the firm's added a precautionary measure to avoid additional costly mishaps. Among other changes included in iOS 7.1, Cook and Co. snuck in an alert after micro-transactions that tells users similar payments can be made for the next 15 minutes without entering their password. Of course, the notice also directs the wielder of the iOS device to adjust the restriction if it's not to their liking. The 15-minute policy is far from new, but the message is likely a welcome -- albeit tiny -- addition for parents with shopping spree-prone offspring.
Emulsio does an excellent job of stabilizing your iOS videos
Emulsio (free, but more about that later) takes a shaky video and really smooths it out. Shoot a video of up to 15 minutes in length with your iPhone, iPod touch or iPad and load it into Emulsio. The app fixes horizontal or vertical movement, and even removes some shots that are just too shaky for viewing. One nice feature of the app is that you can see a split screen of the processed and unprocessed video, allowing you to increase the strength of the stabilization routines to fit your needs. You can then send the photo to your camera roll, email, Facebook, Dropbox, Evernote or iMovie. The processing was very fast on my iPhone 5s -- a twenty second clip was processed in about eight seconds, and it was obviously smoother and more professional looking. You can see a good demo video on the web. OK, on to some complaints. While billed as free, the app is just a sampler for the "real" US$1.99 version which is available as an in-app purchase. The free version processes only 30 seconds of video, and then exports the processed video with a watermark -- that makes the app pretty unusable in the real world. I think free apps should not be so completely encumbered. Frankly, Emulsion is worth $1.99. It does what it does very well, and in my view it should be sold that way. Sure, the app will get sampled for free, but I think happiness will be followed by disappointment at how crippled the free app is. A lot of work went into producing this app, so don't let my negative comments about the free app dissuade you. Emulsio supports most Apple hardware (iPhone 4 and up, iPod touch 5th generation, iPad 2 and up) and it is optimized for iOS 7 and 64-bit devices. Emulsio really does work. I just dislike the come-on.
You won't want to walk away from Any Landing
The saying goes: "Any landing you walk away from is a good one," and that mindset is the backbone of Any Landing, a new action game from Strange Flavour. Your only goals are to get as far as possible without crashing your plane, and when you do eventually fall out of the sky, to crash as gently as possible. You are given only a button for throttle, a button for the brake and a prayer. Any Landing starts you out with a simple aircraft and gives you a brief tutorial on the game's tilt-based controls and item gathering. From there, you're on your own, and the first few solo flights are definitely going to be shorter than you would expect. In my own experience, the first endeavor came to a close with a poorly timed dive to gain some speed, at which point my plane stalled and burst into flames. This is not unusual in Any Landing. You see, the planes in Any Landing aren't exactly built with care -- or at least it would seem that way, given their tendency to belch fire. Using the engine button to boost your speed damages the engine, and once your engine is completely ruined, you have no way of preventing an eventual crash unless you pick up some in-air repair items. Of course, not everything you find in your path is there to benefit you; there are flocks of birds and other obstacles, as well as bombs and planes from the nefarious "Evil Air" corporation. And whether it's on the first or last of the game's 32 levels, you're going to eventually succumb to the damage the world inflicts and have to hit the dirt. Crashing in Any Landing is an art of its own, and there are many ways to approach it. Slamming into the ground at a steep angle will typically end in a Game Over, but if you can manage to slow your aircraft and slide into the terrain in a less-destructive manner, your crew and passengers will walk away unscathed. It's also worth mentioning Any Landing's in-app purchase system, which I detailed in a separate article. The game allows you to purchase in-app currency called "Wings," which can be used to purchase upgrades and repairs. The twist is that each purchase you make pushes you closer to the US$9.99 "All You Can Eat" tier where you are given unlimited Wings permanently. It's a fantastic compromise for gamers who normally shy away from "pay to win" games, and I'm really hoping other developers adopt similar models. Any Landing is free to play, and it's both a refreshing alternative to the "runner" genre and an example of a fantastic microtransaction model. Give it a shot.
This is how in-app purchases should be handled
Ever since the ability to include in-app purchases was added to the App Store, the idea has divided gamers. On one side you have customers who prefer the traditional manner of purchasing a game -- pay upfront, and you have access to whatever the game has to offer -- while others see no problem in getting a game for free and then paying for perks, in-game currency or additional game modes. There are arguments to be made for either sale method, but we've not seen anything in the way of a quality compromise between the two, until now. Developer Strange Flavour has introduced a new in-app purchase model in its new game Any Landing, and it's designed to please both camps. Strange Flavour calls it the "Play Nice" model, and here's how it works: The core game can be either free or paid, it doesn't really matter. Any Landing is indeed free. Like most in-app purchase games, there are several tiers of goods available (in Any Landing the purchasable currency is called "Wings"). Along with the incremental boosts, there is an "All You Can Eat" option that unlocks everything, and locks the ability to make any in-app purchases, even accidentally. Each time you purchase one of the smaller boosts, the amount you paid is deducted from the All You Can Eat price. This system is superior to what we are currently used to from IAP games for a couple of reasons, but most important is the fact that when you make a purchase, you're always working toward an end, rather than simply stuffing your digital wallet for a day or a week. One of the main arguments against games that rely on in-game transactions is that they're never-ending, and feel more like you're throwing money into a void than actually paying for the game. With Play Nice, every cent you put in rewards you in the same way as it would in your average game, but it also brings you a step closer to owning everything the game has to offer. Play Nice also solves the problem of parents who find unexpectedly massive App Store bills after letting their kids have a go at some in-game boosts with their credit card. No matter what, only a set amount can be spent on a game that uses the Play Nice model. Even if you delete the game or re-download it on another device, you can restore your previous purchases for free, ensuring you never double pay. Now, I understand that some games -- Candy Crush Saga and Clash of Clans come to mind -- benefit from players paying massive amounts of money to keep their in-game performance at a peak, but these are extremely rare and special cases. Your average developer never sees the type of rabid fanbase that warrants in-app purchase options of US$59.99 or $99.99, and a payment system like Play Nice gives would-be players an incentive to spend a few bucks now, and then maybe a few more bucks later, as opposed to trying out a game, seeing how much it costs to "win" and then never bothering to try.
I'd probably really enjoy this game if I could get past the ads
My intention was for what I'm writing right now to be a review of the new iOS game Small Fry. It's a game about a cute little fish that you have to navigate through the sea and air and it initially caught my eye because I have a serious addiction to Fish Out Of Water. But instead of writing about Small Fry, I'm writing about Small Fry's in-game advertising and what it means for the App Store. To be perfectly clear upfront: I would prefer to pay for apps once at the time of my initial download and never have to worry about paying more to continue the experience down the road. That is my ideal App Store experience, but I'm not unwilling to compromise. Anecdotally, I hear all the time that in-app purchases are the scourge of humanity, but the fact that so many high-profile apps are relying on this model means that it's paying off for at least some of them. I see game genres embracing IAPs that I never thought would, like racing games and shooters, and I realize that it's futile to push back. I get it: Developers have to make money. If you get someone to download your app for free and then drop US$5 every few weeks on "gold" or "gems" or whatever, then it ends up paying more than a $2.99 upfront, one-time payment. That's fine; keep doing that. I'm not going to buy the crap, but I'm officially giving up my battle against the idea of in-app purchases because they're very clearly not going anywhere. That, and enough developers seem to have gotten the hang of the freemium model that I no longer fear it when I play a game being marketed as "free." What I will keep fighting against is intrusive and obnoxious in-app advertising strategies. This is where Small Fry and so many other games get things shockingly wrong. Here's how the offending system works: Opened the app? Launch a pop-up ad. Finish a level? Launch a pop-up ad. Hit the pause button? Launch a pop-up ad. Die or otherwise fail? Launch a pop-up ad. Exit to the main menu? Launch a pop-up ad. I invite you to guess how many times I (intentionally) click on these types of ads. If you guessed "never," you are correct. The obvious reason I don't click on them is that I'm already playing a game and don't really want to switch, but this doesn't tell the whole story. The more nuanced reason is that these types of ads -- the ones that relentlessly assault you at every turn -- are outright ruining the experience. I don't see an ad for another game pop up for the 18th time and think, "Oh, let me take a look at this for a second and possibly consider purchasing it." I think about how quickly I can find the "x" in the corner and how stupid the developer must be for thinking that I'm going to be more likely to buy its other game on the 18th time it's been pitched to me than on the first 17. To put it another way: If I download your app, launch it and the first thing I see is a full-screen ad for a different game, I'm never going to play either of them. I'm not going to fight your app to let me play it, and if you insist on tainting your digital wares in such a way, I promise you I can't delete them from my phone fast enough. It's not as though I'm alone in this line of thinking, either. Using Small Fry as an example, two of the top five reviews at the time of this writing mention how obnoxious the ads are. Read a bit further and you'll find players begging to simply pay for the app upfront rather than deal with intrusive ads they have no interest in clicking. There are some downright fantastic games that are seriously damaged by horrible ad systems, and some of them are even paid apps (I'm looking at you, Flick Home Run). These types of games sometimes make an appearance on the top charts, but by and large the App Store's heaviest hitters have taken a much more measured approach. I could be wrong, and people could be clicking on these ads every chance they get. I doubt it, but anything is possible. But personally, I'm done wasting my time on games that seem to be hell-bent on getting me to play something else.
Your child make an in-app purchase by mistake? Apple will refund your money: News from Jan. 15, 2014
The biggest news of the day was Apple's agreement with the FTC regarding the in-app purchases that children made without their parents' permission. Apple will return at least $32.5 million to those who had their children rack up huge iTunes bills inadvertently. This includes full restitution for those purchases, whether it's as little as a dollar or as much as several thousand dollars. If the total bill comes in less than $32.5 million, the rest will be paid to the FTC. Apple has until March 31 to institute changes to clarify when an in-app purchase is being made to prevent this from happening any longer. Will you be getting money back out of this settlement? Other news from this afternoon included: Which app sold more than 4 billion pages worth of comics in 2013? None other than industry leader Comixology, which was deemed the most-profitable non-game iPad app once again. Are you having issues with your Fitbit Force? The company is offering full refunds to those suffering from skin irritation from the wrist unit, or you can choose another item from the Fitbit line to use. Spotify makes another step forward in making its process more accessible to everyone. On top of enabling free listening on its iOS apps, it has dropped the time limit it had imposed on listening on the computer for those using the free version. This is an international move, so if you're using the ad-supported version of Spotify, you can listen for as long as you want. The Google Play Movies & TV app is now available in the App Store. It'll enable iOS users to watch movies and TV shows they've gotten through Google Play. The TV shows are restricted to the United States, United Kingdom and Japan at this time. Starbucks has admitted that its iOS app stores its mobile app store passwords without any sort of encryption. Kick back and relax with some of these features: 5 Apps that would have made the Fellowship's trip to Mordor much easier Hands-on with Kinsa, the smart thermometer of the future
Apple settles with FTC, agrees to pay out $32.5 million to customers in IAP suit
Apple has agreed to issue more than $32.5 million in refunds to iTunes App Store customers who incurred unwanted in-app purchase fees within kids' mobile apps, settling a complaint registered by the Federal Trade Commission. The FTC's complaint found that Apple "does not inform account holders that entering their password will open a 15-minute window in which children can incur unlimited charges with no further action from the account holder." As a result, many parents racked up significant iTunes bills when their children took advantage of the loophole to purchase virtual items, currency, and other in-game bonuses without permission. The FTC notes that Apple has received "tens of thousands of complaints" from affected parents in the years following the App Store's launch. One child reportedly spent $2,600 of her mother's money in Tap Pet Hotel, and several parents were hit with hundreds of dollars in fees after their children played games like Dragon Story and Tiny Zoo Friends. The UK's Office of Fair Trading levied similar complaints last year when it launched an investigation targeting pressured purchases in childrens' apps. Apple previously issued over $100 million in iTunes gift certificates to reimburse unwanted fees from Capcom's microtransaction-supported Smurf Village.
Breaking: Apple agrees to FTC consent decree on in-app purchases (Updated)
Re/code reported earlier this morning that Apple has signed a consent decree with the Federal Trade Commission (FTC). This agreement is intended to resolve complaints that the company didn't go far enough in preventing kids from making in-app purchases without understanding that there was real money involved. Update: At a Washington, DC press conference this afternoon, FTC chairman Edith Ramirez noted that Apple will refund at least $32.5 million to consumers to settle the case in which children had made in-app purchases without their parents' consent or knowledge. That $32.5 million figure is a minimum -- Apple must pay full restitution to consumers for the unauthorized purchases, so the number could be bigger. Apparently, if the number paid out is less than $32.5 million, Apple will pay the difference to the FTC. Apple also has until March 31, 2014 to revise its billing system to make it more obvious that an actual purchase is being made during a game and to make sure that consumers have given their informed consent before being billed for in-app purchases. Last year, Apple settled a lawsuit over unauthorized use of IAP in games and apps, but apparently the FTC decided that wasn't enough. Apple CEO Tim Cook sent an email to all employees this morning explaining the company's decision: From: Tim Cook Date: January 15, 2014 Subject: FTC announcement Team, I want to let you know that Apple has entered into a consent decree with the U.S. Federal Trade Commission. We have been negotiating with the FTC for several months over disclosures about the in-app purchase feature of the App Store, because younger customers have sometimes been able to make purchases without their parents' consent. I know this announcement will come as a surprise to many of you since Apple has led the industry by making the App Store a safe place for customers of all ages. From the very beginning, protecting children has been a top priority for the App Store team and everyone at Apple. The store is thoughtfully curated, and we hold app developers to Apple's own high standards of security, privacy, usefulness and decency, among others. The parental controls in iOS are strong, intuitive and customizable, and we've continued to add ways for parents to protect their children. These controls go far beyond the features of other mobile device and OS makers, most of whom don't even review the apps they sell to children. When we introduced in-app purchases in 2009, we proactively offered parents a way to disable the function with a single switch. When in-app purchases were enabled and a password was entered to download an app, the App Store allowed purchases for 15 minutes without requiring a password. The 15-minute window had been there since the launch of the App Store in 2008 and was aimed at making the App Store easy to use, but some younger customers discovered that it also allowed them to make in-app purchases without a parent's approval. We heard from some customers with children that it was too easy to make in-app purchases, so we moved quickly to make improvements. We even created additional steps in the purchasing process, because these steps are so helpful to parents. Last year, we set out to refund any in-app purchase which may have been made without a parent's permission. We wanted to reach every customer who might have been affected, so we sent emails to 28 million App Store customers – anyone who had made an in-app purchase in a game designed for kids. When some emails bounced, we mailed the parents postcards. In all, we received 37,000 claims and we will be reimbursing each one as promised. A federal judge agreed with our actions as a full settlement and we felt we had made things right for everyone. Then, the FTC got involved and we faced the prospect of a second lawsuit over the very same issue. It doesn't feel right for the FTC to sue over a case that had already been settled. To us, it smacked of double jeopardy. However, the consent decree the FTC proposed does not require us to do anything we weren't already going to do, so we decided to accept it rather than take on a long and distracting legal fight. The App Store is one of Apple's most important innovations, and it's wildly popular with our customers around the world because they know they can trust Apple. You and your coworkers have helped Apple earn that trust, which we value and respect above all else. Apple is a company full of disruptive ideas and innovative people, who are also committed to upholding the highest moral, legal and ethical standards in everything we do. As I've said before, we believe technology can serve humankind's deepest values and highest aspirations. As Apple continues to grow, there will inevitably be scrutiny and criticism along our journey. We don't shy away from these kinds of questions, because we are confident in the integrity of our company and our coworkers. Thank you for the hard work you do to delight our customers, and for showing them at every turn that Apple is worthy of their trust. Tim The FTC is holding a press conference at this time to discuss the details of the consent decree.
The power of free-to-play app pricing
"Free-to-play." For mobile gamers, those simple three words (often abbreviated as FTP) have a host of different meanings. For optimists, it means people can play high-quality games with little or no financial investment of their own. For others, it's a game-crippling inconvenience that ends up getting in the way of a good time. This writer falls into the latter category of "just let me buy the game once and leave me alone," but as the success of FTP games like Candy Crush Saga has shown, I'm in the minority. In fact 82 of the top-grossing games on the iPhone are FTP. They're here to stay, so we should probably learn to live with them. What makes a successful free-to-play game? Geoffrey Goetz of Gigaom.com has written an incredible -- and long -- rundown of the free-to-play market that answers the question "Why is free-to-play pricing so effective?" The answer is simple to understand, but complex to fully explain. It works a lot like how your parents probably explained drugs to you -- the first hit is free, but from then on, you start paying. As a developer, how do you make that first "hit" enjoyable? It comes down to three major factors, according to Goetz: Flow, Intermediate Currency and Dynamic Pricing. Flow is a game's ability to get you involved in play, and keep you involved. This is done by giving you a clear task, such as gardening or clearing all the Jellies in a level of Candy Crush. Intermediate Currency is removing the obvious exchange of money from your transaction. That's why so many games have you buying gems or coins for in-game purchases instead of using your everyday money. Your brain doesn't see gems and coins as real money when you're spending them in real time. Finally, these games use Dynamic Pricing to give you the illusion of saving money when the game wants you to. You might balk at paying $5 for access to a fire-breathing dog in an iOS game, but holy crap! Did you know that same dog is only $2 if you buy him on Labor Day? Those are the kind of savings that will drive you from the picket lines! The rest of Goetz's article examines the other aspects of the free-to-play marketplace and is well worth your time to read. Gamer happiness with in-app purchases, how parents can control their children's app spending and an examination of the real expense of virtual goods are just some of the angles he covers that I've personally never considered. Head over to Gigaom for the complete article. Depending on where you're at in Candy Crush, you probably have anywhere from 30 minutes to a few hours before you can play again anyway! Unless, of course, you want to throw down a few extra dollars...
Study: freemium gamers say in-app purchases are worth it
In-app purchases (IAPs) have gotten a lot of bad press over the past year. It seems like it's every other week you'll see an article saying that some kid racked up US$20,000 in IAP's on his parents' account and now those parents want Apple to pay for it. But a new study has been released that shines some good light on the practice of freemium games that offer in-app purchases: gamers feel like they're a good deal. The study was conducted by video game research company EEDAR. It found that out of 3,000 respondents, 75 percent of those that spent US$50 on IAPs and 67 percent that spent over $100 thought the price was fair and they were benefiting from the experience. As EEDAR's senior analyst Patrick Walker told PocketGamer: "Critics of the free-to play-business model state that the model takes advantage of heavy spenders by leveraging impulsive buying behaviors rather than providing true gameplay value. However, when asked, the majority of heavy spenders endorse that they are satisfied with the purchases made in the mobile games on which they spend the most money. In addition, these heavy mobile spenders play on a broad variety of platforms, including consoles, and understand the value proposition supplied across different business models, and still choose to purchase microtransactions." The games that users said they bought the most IAPs from were Candy Crush Saga, with 22 percent of respondents buying IAPs in, and Clash of Clans, which totaled 9 percent of IAPs purchased.
Usain Bolt added as playable character in Temple Run 2
The Temple Run series of games are some of the most popular casual games on the App Store, and while the simplicity of the titles can't be overstated -- running forward is really your main goal -- they offered developer Imangi Studios a chance to have some fun with one of the fastest humans around. And so, for a "limited time," Usain Bolt can be bought as a playable character in Temple Run 2. According to AllThingsD, Bolt was enthusiastic about his inclusion in the game, stating that people often joke that they'd like to play as the Olympic champion in a Temple Run title. Bolt's digital self is outfitted in his iconic gold and green Olympic garb and costs US$0.99. Oh, and he even performs the runner's trademark pose, because details matter.
