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GDC 2010: Ngmoco justifies the freemium model Posted on March 10th

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As popular as Ngmoco and its games are, whenever we seem to post about them, the subject of their business model seems to rise to the top again. While they have emerged as one of the iPhone's top original developers, they've also lost a lot of fans by sticking with a model they call "freemium," even to the detriment of some of their most popular games. They release games for free, and then monetize the games by using microtransactions, selling both virtual items and virtual currency for real money.

We have a lot of questions for the company, and we'll be asking even more of them coming later this week. But first things first: we cornered Ngmoco producer Allen Ma here in their suite at GDC 2010 and asked him to try and tell us why Ngmoco is so insistent on "freemium," and how they feel about some of the adverse customer reactions to their model. Read on to hear why free-to-play, pay-to-play-more is the model that they're betting their business on.

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GDC 2010: Ngmoco justifies the freemium model originally appeared on The Unofficial Apple Weblog (TUAW) on Wed, 10 Mar 2010 15:00:00 EST. Please see our terms for use of feeds.

The Unofficial Apple Weblog (TUAW)GDC 2010: Ngmoco justifies the freemium model originally appeared on The Unofficial Apple Weblog (TUAW) on Wed, 10 Mar 2010 15:00:00 EST. Please see our terms for use of feeds.

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