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"How do we recalibrate people's expectations about the value of software back to pre-2008 levels?" As someone who wasn't quite old enough to be interested in f

by Zirro 14y ago

"How do we recalibrate people's expectations about the value of software back to pre-2008 levels?" As someone who wasn't quite old enough to be interested in following this when it happened, I feel the need to ask: Why did the App Store affect pre-2008 price-levels as much as it did? Were most apps this cheap at the launch of the App Store, or did it lower over the year(s)? Did Apple set any guidelines for the price-levels of apps, thus creating the levels we're seeing today, or was it entirely up to the developers?

SoftwareMaven 14y ago
The early days of the App Store were a gold rush. People were able to make a good chunk of money off a $5 app. That brought in investment dollars (angel or internal corporate development) that allowed prices to be lowered because there was less direct need to have revenue and costs line up. Over time, that pushed the prices down lower. Customers became accustomed to getting an amazing app for $0.99 (or even free), so they complain at best and refuse to buy at worst if the price is much higher. Apple never provided any guidelines on pricing. The market went where it wanted to.
- mgkimsal 14y ago
  I know I'm not the only one, but I rarely buy iphone/ios apps, mostly because there's often no trial process, and there's no return/refund policy. Yes, it might get abused, but give vendors the ability to do more (time limited trials, functional trials with in-app upgrades, etc). Some vendors try to provide this, but... they're fighting against Apple App Store policies. Yes, you can argue "hey, it's just $x" ($2? $1? $3?) Over time, those tend to add up, and when there's no recourse, I'd rather just not participate much.
gyardley 14y ago
Prices were slightly higher at launch, with $4.99 and $9.99 being fairly common price points. (Super Monkey Ball, the first heavily-promoted game I can recall, was $9.99.) But by Christmas 2008, less than a year later, prices were about what they were today. In my opinion / recollection, prices dropped because some developers experimented and discovered that they could make more money at $0.99 - the increased unit sales more than made up for it. Of course, those increased unit sales were partly because they were one of the few quality applications selling at $0.99 - and once the other developers saw how the $0.99 apps were cannibalizing their $4.99 sales, they followed along to compete. I don't recall Apple influencing pricing publicly, but god knows if they had any discussions with their initial, pre-announcement partners. It wouldn't surprise me if they pushed Sega to get Super Monkey Ball out at $9.99, since it sold for much more than this on earlier game platforms, but that's just me speculating.

by Zirro 14y ago

SoftwareMaven 14y ago

The early days of the App Store were a gold rush. People were able to make a good chunk of money off a $5 app. That brought in investment dollars (angel or internal corporate development) that allowed prices to be lowered because there was less direct need to have revenue and costs line up. Over time, that pushed the prices down lower. Customers became accustomed to getting an amazing app for $0.99 (or even free), so they complain at best and refuse to buy at worst if the price is much higher. Apple never provided any guidelines on pricing. The market went where it wanted to.

mgkimsal 14y ago
I know I'm not the only one, but I rarely buy iphone/ios apps, mostly because there's often no trial process, and there's no return/refund policy. Yes, it might get abused, but give vendors the ability to do more (time limited trials, functional trials with in-app upgrades, etc). Some vendors try to provide this, but... they're fighting against Apple App Store policies. Yes, you can argue "hey, it's just $x" ($2? $1? $3?) Over time, those tend to add up, and when there's no recourse, I'd rather just not participate much.

gyardley 14y ago

Prices were slightly higher at launch, with $4.99 and $9.99 being fairly common price points. (Super Monkey Ball, the first heavily-promoted game I can recall, was $9.99.) But by Christmas 2008, less than a year later, prices were about what they were today. In my opinion / recollection, prices dropped because some developers experimented and discovered that they could make more money at $0.99 - the increased unit sales more than made up for it. Of course, those increased unit sales were partly because they were one of the few quality applications selling at $0.99 - and once the other developers saw how the $0.99 apps were cannibalizing their $4.99 sales, they followed along to compete. I don't recall Apple influencing pricing publicly, but god knows if they had any discussions with their initial, pre-announcement partners. It wouldn't surprise me if they pushed Sega to get Super Monkey Ball out at $9.99, since it sold for much more than this on earlier game platforms, but that's just me speculating.