Monetization

With the introduction of the iOS App Store and support for in-app purchases by October 2009, the methods through which mobile games earn revenue have diverged significantly away from traditional game models on consoles or computers. Since 2009, a number of models have developed, and a mobile game developer/publisher may use one or a combination of these models to make revenue.

Premium

The premium model is akin to the traditional model where the user pays for the full game upfront. Additional downloadable content may be available which can be purchased separately. Initial games released to the App Store before in-app purchases were available used this approach, and still common for many types of games.

Freemium

The freemium or "free to try" model offers a small portion of the game for free, comparable to a game demo. After completing this, the player is given the option to make a one-time in-app purchase to unlock the rest of the game. Early games shortly after the introduction of the in-app purchase feature used this approach such as Cut the Rope and Fruit Ninja.

Free-to-play

A free-to-play game requires no cost at all to play, and generally is designed to be playable from start to finish without having to spend any money into the game. However, the game will include gameplay mechanics which may slow progress towards completing the game. Commonly in mobile games, this is some form of energy or stamina that limits how many turns or actions a player can take each day. By using in-app purchases, the player can immediately restore their energy or stamina and continue on. In-app purchases can also be used to buy power-ups and other items to give the player a limited-time advantage to help complete the game. While free-to-play games had been common on computers prior to mobile, the method was popularized in mobile gaming with Candy Crush Saga and Puzzle & Dragons.

Advertising-supported

A ad-supported game will be free to download and play, but periodically or persistently, the game will show an ad to the user which they will have to watch through before they can continue with the game. The developer earns revenue from the advertising network. In some cases, an in-app purchase allows the player to fully disable ads in these games.

Subscription model

A subscription-based game will offer a base version with limited features that can be played for free, but additional premium features can be obtained if the user pays a monthly subscription fee. If they terminate their subscription, they lose access to those features, though typically not any game progression related to those features, and can pick up those features later by restarting their subscription.

Many game apps are free to play through a combination of these models. Over time, mobile developers of these types of apps have observed that the bulk of their players do not spend any funds on their game, but instead revenues are generated from a small fraction, typically under 10% of their total players. Further, most of the revenue is generated by a very small fraction, about 2%, of the total players, who routinely spend large amounts of money on the game. A similar split on revenue had been seen in social-network games played in browsers. These players are known as "whales", inspired by same term used for high rolling gamblers. The social nature of a mobile game has also been found to affect its revenue, as games that encourage players to work in teams or clans will lead to increased spending from engaged players.