This will fix itself -- if he is correct that people want iOS apps (read: games) that reach parity with other handheld devices.
1. Developers will start making simpler games to maintain profitability at the $5 price point.
2. Once the vast majority of iOS games are $5 and relatively shallow in comparison with other devices, deeper more complex games will once again contrast in value to the $5 games, allowing them to charge more money.
3. Because of the "monthly budget" effect, I'm guessing the way this will work is in-app purchases. X-Box has been very successful with this model. Sell a full (but somewhat short) game for $5. Then allow the users to buy more "content" for $2 per unit.
a $5 game That allows you to buy multiplayer content, additional story, or other mods for a dollar or 2 at at time could easily get their average lifetime sales per game up to 7 or 8 dollars. (and the big name games could start at $10 and total 12 to 15)
One more thing
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I think it's worth pointing out that price decreases in the longer term don't prove anything. This happens everywhere. Even on game consoles (Xbox, PS3, wii, etc) where the games start out costing upwards to $40.
You can always to to a game store and find older games on sale for $15.
1. Developers will start making simpler games to maintain profitability at the $5 price point.
2. Once the vast majority of iOS games are $5 and relatively shallow in comparison with other devices, deeper more complex games will once again contrast in value to the $5 games, allowing them to charge more money.
3. Because of the "monthly budget" effect, I'm guessing the way this will work is in-app purchases. X-Box has been very successful with this model. Sell a full (but somewhat short) game for $5. Then allow the users to buy more "content" for $2 per unit.
a $5 game That allows you to buy multiplayer content, additional story, or other mods for a dollar or 2 at at time could easily get their average lifetime sales per game up to 7 or 8 dollars. (and the big name games could start at $10 and total 12 to 15)
One more thing
--------------
I think it's worth pointing out that price decreases in the longer term don't prove anything. This happens everywhere. Even on game consoles (Xbox, PS3, wii, etc) where the games start out costing upwards to $40.
You can always to to a game store and find older games on sale for $15.