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A Third of Mobile Game Downloads Are Free,
Posted: 26-Sep-2005 [Source: Telephia]

[Telephia reports 64 percent of all games downloaded in Q2 2005 were revenue-generating and the remaining 36 percent were free.]

San Francisco -- Telephia, the leading provider of performance measurement information to the mobile industry, reports that 64 percent of all games downloaded in Q2 2005 are revenue-generating purchases while the remaining 36 percent are free. According to Telephia's Mobile Game Report, Puzzle/Strategy mobile games have the highest percentage of free game downloads (48%), and shows the strongest revenue performance with a 27 percent share of revenue among the top mobile game categories. Mobile consumers paid an average price of $4.27 for a Puzzle/Strategy game.

Promotion strategies vary by mobile game genre. In contrast to the high free trial rate of 48 percent for Puzzle/Strategy games, only 18 percent of Classic/Arcade game downloads are free. However, Classic/Arcade games posted a 14 percent share of revenue, nearly half that of Puzzle/Strategy games. At the same time, Sports/Racing games had the second highest share of revenue at 16 percent with only 25 percent free downloads -- almost half the free trial rate of Puzzle/Strategy games.

According to Telephia's Mobile Game Report, pricing also varies significantly from one genre to another. Action/Adventure and Puzzle/Strategy genres lead with the highest average price paid, with mobile users paying $4.29 and $4.27 respectively, while Sports/Racing, Card/Casino and Classic/Arcade genres all have average price paid under four dollars.

"At this early stage of the game, publishers are employing different strategies with pricing and promotional incentives to learn what will gain the most traction with consumers and deliver the best revenue performance outcome," said Kanishka Agarwal, Vice President of New Products, Telephia. "Accurate data on adoption and price elasticity will play an important role in these pricing strategy decisions."

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