The designation of a game as 'mobile-first' may impact the pricing strategy developers can implement for its console versions

Recent leading titles have shown that mobile platforms can hold their own against their console counterparts.

Genshin Impact, a widely popular action-adventure game with gacha mechanics, launched simultaneously on Android, iOS, PlayStation 4, and PC in September 2020, followed by a PlayStation 5 release a year later. Today, several major IP titles are moving towards concurrent releases across consoles, PC, and mobile platforms.

This trend is driven by the narrowing performance gap between devices, alongside significant investments from companies like Netflix in mobile gaming. For instance, the upcoming Tales of the Shire will be available on Netflix from its launch day, and Paper Trail was released simultaneously across the platform and PC/consoles.

The traditional boundaries defining 'mobile' games are becoming increasingly ambiguous.

Nevertheless, long-standing biases against mobile games, often seen as inferior to their PC and console counterparts, continue to influence how some gamers perceive their value. Coupled with the widespread popularity of 'free-to-start' games on iOS and Android, developers and publishers are navigating complex pricing strategies for titles available on both mobile and console.

History and Perceptions

Michiel Buijsman, lead analyst at Newzoo, highlights the underlying value perception issue: "The most crucial factor when pricing a game is understanding that there is a distinct upper limit to what consumers are willing to pay for mobile games, which is significantly lower than the ceiling for PC and console games."

He adds that third parties, such as platform owners, also influence overarching pricing strategies: "When pricing a cross-platform release that includes mobile, it's essential to consider not only potential negative community feedback but also the mandated rules by platform holders that pricing must be equal or lower on their store."

"There is a clear ceiling to how much people are willing to spend on a premium game on mobile, which is much lower than the ceiling on PC and console"Michiel Buijsman

Supporting this, Niko Partners research reveals that the mobile gaming community is predominantly tuned to the free-to-play model. Deviating from this structure for a mobile-first title significantly diminishes its success prospects.

The expectation for games, whether on mobile or console, to be free-to-play effectively sets a price cap for mobile titles. As more F2P games launch on consoles, this trend is likely to become even more pronounced. According to Niko Partners, F2P games account for 73.1% of global player spending. Even on consoles, where premium titles dominate, F2P titles make up over a quarter of digital player spending on PlayStation and Xbox.

Niko Partners attributes this to the success of games like Fortnite and Roblox among the most-played titles: "Selling copies in a one and done fashion is no longer the optimal way to gather a large audience, which is why F2P has thrived."

However, there are ways to navigate around this pricing cap. In the Asia and MENA regions, 77% of console gamers who spend money on games have purchased a premium game in the last year. F2P console games often offer premium-priced starter packs that include various in-game advantages and extras, justifying the initial cost. This approach was evident with the PS5 Genshin Impact Starter Set exclusive to China released in January 2024. Such strategies aim to challenge the lower perceived value of mobile-first titles by incorporating additional content at the initial price point.

Developer Concerns

Given these factors, premium mobile titles are generally priced lower than they would be if they were solely released on consoles. So, how does this affect the developers of cross-platform games?

Tommy Prentice, product lead at Exient Entertainment, elaborates: "Players are now accustomed to 'free-to-play' monetization models, which also dominate many other platforms. This makes the challenge of convincing players to spend in a different manner much tougher. Determining an upper price limit usually depends on the product offered, and market conditions play a significant role in pricing considerations."

He emphasizes that "many market analysts bundle all mobile games together," but his team has identified a significant distinction between premium and F2P titles in terms of monetization strategies.

Marcus Sanders, known for his YouTube channel EpicNameBro, is the developer of the forthcoming strategy RPG Radix Chronicle. The game's initial Kickstarter campaign targeted Windows, Linux, and Android releases, with other platforms to follow. Sanders explains the pricing difficulty: "The market is dominated by gacha-based free-to-play and ad-supported games, which depresses the cost of mobile games since player expectations are set by 'free' titles."

"Selling copies in a one and done fashion is no longer the best way to attract a large audience"

"You either aim for the free-to-play audience, or you don't. We chose the latter. We deliberately avoid integrating gambling or advertising elements, basing this on personal ethics rather than financial reasons. We strive to create and sell a complete game similar to those from past eras," Sanders notes.

The perception of games, especially mobile ones relying on microtransactions, as being sold in pieces reflects the evolving economics of game publishing, as noted by Niko Partners.

Considering these dynamics and his own principles, along with the need to recover development costs upon release on Steam, Sanders and his team settled on a $20 price point for both PC and mobile. He believes it’s unreasonable to charge differently when the final experience is nearly identical on both platforms.

Hardware limitations of mobile devices also influence price perceptions among users. It's not just about the processing power of mobile phones; other device aspects can affect how mobile games are valued.

Cristian Cailenau, a partner account manager at Raw Fury, publisher of games like Cassette Beasts and Norco, comments: "Screen size used to directly correlate with game pricing for our previous titles, meaning the mobile price was a specific portion of the PC/console version."

He explains that this proportion depends on various factors, including user feedback, user base, and the average game price throughout its lifecycle, considering different discount periods. Additionally, the amount of content, including DLC, can also impact price perception.

However, with the improved capabilities of modern mobile devices, Cailenau notes that their team is "rethinking this pricing strategy," as their mobile ports now achieve "1/1 quality parity with our PC/console versions."

Therefore, even though the traditional view of mobile games as inferior to console titles is evolving, developers of cross-platform games still face challenges in pricing due to varied considerations in mobile gaming. The dominance of the F2P or freemium model presents a more significant limitation than hardware issues, but savvy developers and publishers are finding ways to maximize pricing potential across both mobile and console platforms.