News

GDC 2011: High value IAP in freemium iOS games is driving substantial App Store refunds

#gdc11 Hasty actions demand hasty refunds

GDC 2011: High value IAP in freemium iOS games is driving substantial App Store refunds
Developers were highly vocal about Android Market's initial terms and conditions which allowed consumers to request a refund up to 24 hours after purchasing an item. That's the main reason it's since been reduced right down to 15 minutes.

You don't hear much in terms of similar talk about Apple's App Store, mainly because there's no official refund time.

However, as freemium becomes a more important business model for game developers, so it seems that Apple is operating its own unofficial refund policy.

Gimme back my money

Talking to several developers of freemium games, which have in-app purchases of up to $99, it seems an increasing number of consumers are regretting such high value decisions and phoning up Apple for a refund, citing accidental purchase. Of course, this means developers are seeing their monthly take reduced as refunds are made.

One developer told PocketGamer.biz that the issue was becoming 'substantial' in terms of its highest priced IAP.

It's something which also plays badly in terms of the whole debate over Capcom Mobile's Smurfs' Village, which as well as generating consumer ire over children accidentally buying Smurfberries, seems to have triggered a Federal Trade Commission investigation into the whole in-app purchase model.
Contributing Editor

A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.