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Hmm it is entirely possible to attract new users and access more disposable income (bigger pie). This is backed up with empirical data; aggregate mobile game an
by coralreef 9y ago
Hmm it is entirely possible to attract new users and access more disposable income (bigger pie). This is backed up with empirical data; aggregate mobile game and app store revenues are growing every year.
So while advertising doesn't give consumers more money to spend, it can persuade them to spend higher portions of their entertainment budget on games.
- icebraining 9y agoYes, but that only changes the "gaming industry" to the "entertainment industry". The overall point remains.
- coralreef 9y agoI don't understand what that "overall" point is anymore. I thought the point was "whether the whole mobile game industry makes more money by advertising, or whether those games that advertise just make more money at the expense of others."
- icebraining 9y agoThe claim made above was "Ads over time extract profit margins from all other industries." The mobile gaming industry was used as an example, but even if they grow their pie by reducing some other industry's, the claim is still true.