Despite the popularity of the Google Play store and the Apple Store making them the only two options for app developers to reach a large user base, many creators are not pleased with the conditions they have to deal with. Today we will take a look at some of them and introduce a new project that is about to finally offer a viable alternative to the two market leaders.
The current mobile app ecosystem
The current situation on the mobile app market is comparable to a natural monopoly. There are only two major competitors – the Apple Store and the Google Play Store – both of which are offering a wide array of high quality apps. They exercise strict control on any new product submitted to their stores to ensure a high user satisfaction and standards.
However, to preserve that high level of quality and to justify the high exposure to potential customers offered to developers for their apps, the two app stores are charging considerable fees from the app creators. While the submission and review fees are rather modest – a one-time payment of $25 for the Google Play store and an annual subscription fee of $99 for the Apple Store – the situation is much different when it comes to the revenue-based fees. Both app stores demand the whooping 30% of all revenues – including app purchases and in-app transactions.
This creates a challenging situation for many app developers, especially those who are launching their first product. Next to the development costs of the app developers have to also think about marketing, which sometimes becomes the most resource-intensive factor.
Especially when they are competing with bigger app development companies, it gets especially difficult for smaller developers to turn a profit when you add up the 30% revenue cuts from the app store. And keep in mind that these are not just raw profit we are talking about – it includes all funds incoming from app purchases and in-app transactions, which do not account for the marketing costs and any other expenditures such as maintenance, further development, taxes, and many others.
Another problem that is currently prevalent in mobile games in particular is the exclusiveness of digital in-app currencies. Mobile gaming is among the most rapidly growing entertainment sectors with a CAGR of over 20%, a number few can compete with. It has already surpassed PC and console gaming which are other sub-sectors of entertainment on the verge of becoming leaders in growth. The average american spent about $250 on in-app purchases for mobile games in 2019, signifying a clear trend that is yet to fully unfold.
The problem lies not within the mobile games themselves but within the use cases (or lack of such) for the specific in-game currencies they offer as the only medium of payment for in-app purchases. Purchasing a battle pass or a skin requires the user to deposit a certain fixed sum (let’s say $10) for which they get 1,000 diamonds (the native currency of the specific mobile game). Quite often there is a considerable percentage of the diamonds left unused because of how the in-app products are priced.
Game Changer opens a new chapter
Game Changer is among those companies that become visionaries by breaking traditional models that have considerable problems but have established themselves as the current best alternatives to everything else available. The project creates the first cryptocurrency powering a blockchain-based app store as well as a social media network.
By creating an app store governed by blockchain technology, Game Changer decentralizes the traditional model and removes any intermediaries. Most of the app store functions are managed automatically based on predefined conditions enabling a more efficient way of operations.
The ultimate goal is to lower the percentage of fees deducted from the developers to as little as possible, enough to fund the operational costs of the ecosystem, the costs incurred in reviewing new apps submitted to the ecosystem and for profit for the creator of the app store. All of these percentages are fully transparent to all stakeholders thanks to blockchain technology, allowing them to easily find out the distribution of fees collected.
The GC token will enable cross in-app purchases from one app to another, offering much better flexibility for app users and a higher incentive for them to deposit funds without fearing that they might lose interest in the specific app they want to put their money in. What is more, this enables additional monetization methods for app users, allowing them to tokenize any virtual asset they own within any app in the ecosystem.
For developers, Game Changer creates conditions encouraging them to focus mainly on quality than on marketing expenditures by taking over the promotion of all apps within the ecosystem. This is due to the alignment of Game Changer’s interests with those of app developers through the native currency that is the Game Changer token.
Game Changer and their plans for the foreseeable future
The full rollout of the Game Changer blockchain-based app store and currency are planned for the end of this year. The first apps have already been developed and will be deployed as soon as the project launches to ensure an initial traction.
At a later stage, Game Changer has planned the introduction of a social media network that will be governed by the GC token and will enable the creation and transfer of NFTs (Non-fungible tokens).
To learn more about Game Changer, their upcoming blockchain initiative and ongoing token sale with bonus tokens for early adopters, visit https://gc-token.com/.