in-app purchase

Wanna make money on apps? Give them away

The app business is increasingly banking on the notion that virtual currency in a game could be worth real money--and a lot of it.

In-app purchases, which include virtual cash, weapons, levels, or extra features, are poised to dominate app revenue in the coming years, according to research firm IHS. In-app purchases already accounted for $970 million in sales last year, or 39 percent of the market. By 2015, that figure will grow to $5.6 billion, or 64 percent of the market.

"In 2012, it will become increasingly difficult for app stores and developers to justify charging an … Read more

Zynga's CityVille arrives on Google+

CityVille, Zynga's hottest game on Facebook, is now on Google+.

Today Zynga announced CityVille's arrival on Google's new social-gaming platform. "Ultimately, we want to make our games accessible to everyone, everywhere--no matter where they play or what platform they play on."

This is really good news for Google. Getting into games in a big way with popular titles should help drive engagement on its fledgling social network. Launched as a "limited field test" in June, Google+ recently opened up publicly and has attracted 43.4 million members, AllThingsD is reporting. To really fly, … Read more

YouSendIt delivers unlimited cloud storage

The Samsung Galaxy Tab 10.1 4G will launch this Thursday, Apple forces developers to update their apps to remove external links to e-books and subscriptions, and YouSendIt offers unlimited cloud-based storage for less than you'd expect.

Links from Tuesday's episode of Loaded:

YouSendIt launches unlimited cloud storage Apply with LinkedIn Apple forces developers to update apps Apple & AT&T gearing up for iPhone 5 launch Samsung launching Galaxy Tab 10.1 4G Subscribe: iTunes (MP3) | iTunes (320x180) | iTunes (HD) | RSS (MP3) | RSS (320x180) | RSS HD

Study: iOS, Android users average $14 per in-app buy

The average spent on virtual goods in free to play mobile games is enough to buy what could be more than a dozen copies of their paid counterparts, a new study has found.

Research firm Flurry Analytics today has released data from a study of the buying habits of 3.5 million consumers across the top applications on Apple's iOS and Google's Android platforms. The big number that's been pulled out of all that data is $14; that's the average amount of money spent per transaction from within so-called "freemium" games, or free titles … Read more

Apple throws weight behind devs on patent issue

Apple has sent notice to Lodsys, as well as developers targeted by the patent holdings firm, saying it has licensed the rights to in-app purchase, and that that license extends to developers on the iOS platform.

Developers MobileAge, the makers of the game Shanghai lite, received a letter from Apple's senior vice president and general counsel, Bruce Sewell, this morning telling them that the company has already licensed the four patents in Lodsys' portfolio, and that said license allows Apple's customers and business partners similar coverage to use it.

"Apple is undisputedly licensed to these (patents) and … Read more

Report: Apple looking into Lodsys patent claim

Apple is said to be "actively investigating" the patent claims made by holdings firm Lodsys, which last week began sending a handful of developers notices that their apps were infringing on a patent the group held, The Guardian reports.

Just yesterday Lodsys posted a series of frequently asked questions, along with corresponding answers to its blog, wherein it detailed how its patent pertains to the in-app purchase feature of iOS, and the developers who use it. The group seeks an ongoing, revenue-based licensing fee, as well as back payment on apps that make use of the feature.

So … Read more

Lodsys posts FAQ on its in-app purchase patent

Lodsys, the intellectual property holdings firm behind last week's letters telling iOS app makers their use of in-app purchase was stepping on the toes of a patent, has come out with an FAQ (frequently asked questions) on the matter. In short, the group says that by creating and selling applications that make use of in-app purchase, app developers are responsible for paying a licensing fee.

The FAQ, which has been posted as a series of individual posts on the company's blog, delves into a number of topics, though primarily how its patent pertains to in-app purchases and why … Read more

iOS app makers targeted in patent spat

The makers of several iOS applications have received cease and desist letters over the use of in-app purchasing, from parties who claim the feature infringes on an existing patent.

Computer LogicX, which makes Mix and Mash and Mix and Mash LITE, as well as developer James Thomson, who makes PCalc and DragThing, have received letters threatening legal action if the feature is not removed.

In Computer LogicX's case, the U.S. patent is No.7,222,078, which Macrumors discovered is owned by holding firm Lodsys. That patent, titled "methods and systems for gathering information from units of a commodity across a network," was acquired by the firm in 2004, and deals with the set up and completion of a transaction.

A snippet from the patent attempts to sum up what the invention is about:

"Simply put, this invention helps vendors and customers by transforming their learning cycle: It compresses the time and steps between setting business objectives, creating effective products and services, and improving them continuously. It also alters their roles: Customers become partners in the improvement process along with vendors and distributors."

Rob Gloess of Computer LogicX weighed in on the matter in an e-mail to Macrumors, saying the patent holder was taking aim specifically at an upgrade mechanism that involves… Read more

iFlow Reader developer rages at Apple (Q&A)

CNET ran a story yesterday about BeamItDown Software, the start-up behind the iFlow Reader app for iOS, offering harsh words for Apple as it felt forced to shut down. In a note to customers, the Irvine, Calif.-based company said its demise was due to Apple's "mid-game rule changes that make it impossible for anyone but Apple to sell e-books at a profit on iOS."

I was struck by the candidness of the remarks and decided to track down BeamItDown's co-founder Dennis Morin for a follow-up interview. Morin has been an entrepreneur for a number of … Read more

Parent sues Apple for in-app buying policy

Shortly after Apple introduced new parental controls for in-app purchases on iPhone or iPad games, the company is being slapped with a lawsuit that says it hasn't done enough.

Earlier this week, Garen Meguerian of Pennsylvania filed a lawsuit against Apple that says the company's policy for in-app purchases doesn't go far enough to prevent children from buying currency or points inside apps and games. The lawsuit, filed in the U.S. District Court for Northern California, requests class-action status and asks for unspecified damages and legal fees.

Meguerian brought the suit after his 9-year-old daughter downloaded … Read more