I am very surprised to see that just three of the top twenty grossing iPhone Apps include in-app purchases:
- The Sims 3 (#5) - Madden NFL 2010 (#8) - Tap Tap Revenge (#13) It wasn't long ago that free iPhone Apps were moving into the top grossing ranks due to in-application micro purchases. But just a couple months later, it appears as though there has been a shift in developer philosophy and/or consumer behavior... the latter of which I find difficult to believe (thanks to Zynga, Facebook and so on). It could very well be that iPhone development and mobile behavior make it difficult to fully capitalize upon in-app purchases. Of course, it could also be that the economics clearly suggest that it is in the developer's best interest to capture the revenue up front. In-app purchases obviously require significant and ongoing engagement - so this could also suggest that the lifecycle of an iPhone game is shorter than anticipated.