Why Mobile Game Studios Are Increasing the Prices of IAPs

The mobile gaming industry is currently navigating a period of economic contraction, characterized by a 6.4% decline in global market revenue in 2022 and further projected losses for 2023. This downturn is driven by post-pandemic shifts in consumer behavior, the impact of Apple’s App Tracking Transparency (ATT) framework, and unfavorable foreign exchange rate fluctuations. In response to these pressures, many studios have begun increasing the prices of in-app purchases (IAPs) to maintain margins, particularly as the strengthening US dollar has devalued other major currencies.

Apple initiated widespread IAP price hikes in September 2022 across multiple regions, including Japan, South Korea, and the Eurozone, with increases ranging from 10% to 30%. Developers have adopted varied strategies to manage these adjustments. Some, such as the creators of Octopath Traveller and Genshin Impact, implemented direct price increases, while others, like Nintendo for Mario Kart Tour, opted to rebalance currency packs to provide additional value. A few titles, such as League of Legends: Wild Rift, leveraged the impending price changes to drive short-term revenue spikes through promotional campaigns, while Blizzard’s Diablo Immortal maintained price points while increasing the volume of premium currency offered to preserve player goodwill.

Beyond direct price adjustments, studios are increasingly bypassing platform commission fees by launching external web stores. This trend, accelerated by legal challenges regarding platform payment policies, allows developers to offer more competitive pricing and loyalty incentives directly to players. As the industry evolves, the introduction of additional price points by Apple and the potential for third-party app stores in the European market suggest a shift toward more flexible, localized monetization strategies designed to mitigate the impact of global economic volatility.