Feature

iOS developers on Apple's decision to hike App Store prices in UK

Bringing the UK in line, or likely to damage sales?

iOS developers on Apple's decision to hike App Store prices in UK
Coming almost out of the blue, Apple's decision to raise App Store price points in the UK may well anger consumers, but it's the developers who will have to take the strain.

Based on those we've spoken to, it would appear no studios were given forewarning regarding the change, making their reaction now it has come into force all the more interesting.

Indeed, a quick sample of iOS developers already reveals a variety of different takes on the change:

Andrew John Smith, MD, Spilt Milk Studios

"I'm taking a world view on this one," says Smith.

"While I can certainly understand customers being a bit miffed at the hike - or at any price rise, even one so small as this - I try to see the market as international rather than regional.

"For ages we were essentially getting cheaper games than some other countries, while other players were being charged too much. Adjusting for exchange rates seems a very sensible and fair thing to do, so I support it wholeheartedly.

"I don't really expect it to have any impact whatsoever on sales. There may be some short-term ire directed at Apple - or even developers if the customer base isn’t aware of the decision making process - but ultimately it’s a tiny amount and still keeps the tiers relatively unchanged when looking at it through 'price barrier' goggles.

"The key barriers: 99p, 1.99 and 2.99 etc. are pretty much unchanged, and these are one the biggest influences on people's spending habits. So the market won’t see much of a dip, if any at all."

Anthony Gowland, founder, Mainly About Games

"As far as I know nobody got any advance warning of this - it's something Apple just decided to do," adds Gowland.

"My gut feeling is that for a short while there will be an affect on sales for the cheapest games that used to be 59p as players feel they're not getting their money's worth any more.

"But like all price rises it'll be accepted and forgotten about within in a month. Anything above that used to be seen as 'premium' by a lot of players anyway.

"The real winners will be the freemium guys. The in app purchase prices have increased as well, so they'll be making even more from each player who is willing to pay -because, if you've already invested in a freemium title, you're not going to let an extra 30p or so put you off. Interesting times."

Ben Murch, co-founder, Rodeo Games

"We had no prior warning. Although, Hunters: Episode One is still on the App Store for the same price, as Apple automatically shifted us in the pricing matrix," says Murch.

"I don't think it'll affect sales on the marketplace at all. Most consumers who have iOS systems probably won't mind paying a few extra pence for their low-cost apps.

"Customers who purchase higher price apps have usually made the mental decision to buy, so an extra pound or two probably won't discourage them.

"It's also a necessary step by Apple to get prices aligned globally. Whilst we are being charged a little more over here, Australia is actually getting a price cut. Considering global economics and how much it all fluctuates, I wouldn't be surprised to see Apple make this pricing shuffle a yearly occurrence."

Ed Orman, co-founder, Uppercut Games 

"The lower price here corrects a perceived disparity in pricing that is often cited in Australia," states Orman on the price drop in Australia, instigated at the same time.

"In general, we pay more for games. I've heard a lot of explanations as to why that is over the years, so I'll be interested to hear how this move by Apple affects those arguments, if at all.

"Regardless, it will be nice to get more for my dollar, which I'm sure all Oz consumers will appreciate."

Russell Clarke, head, Secret Sauce"We had no warning, but I don't think it's a big deal, to be honest," adds Clarke.

"The App Store still offers fantastic value to consumers, with a huge amount of quality content available at a very low price. I'll be surprised if this causes any measurable impact to sales - especially at the lower end of the spectrum."

Ben Ward, co-founder, Hogrocket

"For what it's worth, I agree with the message already given by other developers," says Ward.

"Here in the UK we've effectively had cheaper games for quite some time, so I think it's fair that they've been raised slightly to bring them in line.

"A worldwide flattening of prices is just fine with Hogrocket as we consider our target demographic to be truly global and not restricted to just one or two territories.

"Given that the price changes are tiny, I can't see how they will affect purchase decisions in any meaningful way. Even if they do negatively affect the curve of some countries, it's likely that the spike in others will even it out."

Will Luton, creative director, Mobile Pie"As Apple have to pay VAT at the point of sale - and that's before they take their 30 percent - proceeds from the UK have been lower than other countries," contests Luton.

"Up until now that tax whack, which rose from 17.5 pecent to 20 percent recently, has been swallowed by devs and Apple, so it makes sense.

"Today 99c is 61.3p GBP in direct exchange. Add on VAT, which there is none of in the US, and you have 73.6p, so 69p is still a better deal than 99c in the US.

"I think it was the right move from Apple as it will make targeting the UK more attractive to international devs now, which ultimately is great from consumers, even if paying more isn't.

"On a more practical note it makes tier 2, previously a no-mands-land of £1.19 now a more rounded-seeming £1.49. We've already changed IAPs in Top Trumps from £1.79 - previously tier 3 - to the new tier 2 at £1.49 as it's a better price point for our consumers."

Dave Allanson, technical director and co-founder, Albino Pixel"I don't think the price change is big enough to cause too much of a problem," says Allanson. 

"It may have a big effect on apps at the £3.99 price point and above, but below that I don't think the increase is large enough to have a massive impact on sales.

"From a developers point of view, it makes sense to bring us in line with the other stores worldwide. In the UK we have always received a lower percentage from an apps price in comparison with other territories."

mills, co-founder, ustwo"The first I new about it was when twitter exploded late last night (July 13), so it was an unexpected but appreciated change, which in my opinion could have gone even further to raise the prices," adds mills. 

"59p is too cheap for the level of quality that is now expected and needed from developers to succeed.

"I very much doubt 69p will make any difference to the amount of apps consumed - i.e. it won't be less - so it's only a good thing in my books: a tidy 7p extra per app sale. So now we'll be making about £2 more a day."

John Harrison, co-founder, Bang Games

"Seems everything is getting more expensive," says Harrison. 

"I do understand Apples' line on this, exchange rates etc, but I do feel - especially in these tough times - Apple could try harder to absorb the changes.

"10p on an app doesn't sound much, but we don't want to push out 'curious' app downloaders - the guys out there who will just take a look/have a try because "its only 59p".

"These folk often discover new games or apps because they took a risk. As the lower price creeps up, this is less likely to happen, which in turn may mean developers turn to creating more free apps, which means more in-app advertising. And as Bang Games are discovering, advertising as a revenue model is risky.

"Our own title Happy Face is enjoying healthy downloads, but 'click through' revenue isn't paying off yet. Makes me feel the whole app dev/revenue models are still to settle down - I just hope this isn't some 'thin end of the wedge'."

Antony White, director, Paw Print Games"We received no warning from Apple that the pricing changes were going to be made," adds White. 

"From a developer's perspective, this is potentially a good thing, providing a little more return for our efforts. I personally think the lower end of the pricing tier is still a throw away price and people will continue to buy as regularly as they previously did, especially with some of the high quality content available at that price.

"As an example you can pick up a great fun game like, hmm, let me think, oh Kami Retro - shameless plug - for 69p.

"This price hike from Apple may initially see some customers a little irked, but I believe they will still continue to purchase quality content especially if they feel they are getting a bargain.

"However, are customers going to more frequently question whether they will want to spend that little bit more and be less impulsive? I don't know the answer to this and only time will tell, and in the meantime I am sure some friendly statisticians will provide us some nice graphs to look in the coming months."
Check back later for further additions.

If you're an iOS developer and you'd like to give your take on the App Store price rise, drop an email to keith.andrew [at] pocketgamer.co.uk.

With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font.