Publishers could exploit higher iPad prices, warns ngmoco

iPhone and iPad specialist ngmoco has warned that some publishers may look to exploit higher prices for apps on Apple's newly released handheld device.

Simon Jeffery, chief publishing officer for the GodFinger and Rolando publisher, told GamesIndustry.biz that despite the high price of the hardware and apps that sell for double those on the iPhone, his company is still pursing the free-to-play model, and letting consumers pay for extra content and features.

"In the short term, some publishers will attempt to exploit higher prices on the iPad, but we absolutely believe that the future of the ecosystem will be Freemium," offered Jeffery.

"Our entire strategic approach is about building Free-2-Play games and monetising against usage. We believe that consumers should pay for what they enjoy, rather than pay for trial, and we believe that extends to the iPad."

Jeffrey, previously president of Sega in the US, acknowledged that since the iPad launched in the US, high priced apps have sold well on the system, and he also pointed to what he believes is a significant rise in mobile gaming that could be encroaching on the home console space.

"We have certainly seen that App Sales in the US for the first couple of months of the iPad’s life are reflective of higher pricing and quality expectations," he said. "Apps like Numbers, Pages, Keynote and a number of other productivity apps are still high in the Paid chart, which signifies that the device is being used in a 'higher' capacity.

"However, games also dominate both the Free and Paid iPad charts – a highly significant indication that a shift away from traditional console videogame usage toward mobile gaming is occurring."

The iPad is a "big part" of the company's future, according to Jeffrey, who revealed that early analysis of usage by ngmoco is already throwing up usable metrics.

"We are already seeing longer play sessions from our iPad users which is indicative of a comfort level these users have with gaming on the device. Identifying and differentiating new usage patterns is something that we can and will do differently to distinguish our iPad roadmap," he said.

As the iPhone initiated significant change in the mobile market, Jeffrey expects the iPad to have a huge effect on the laptop and even the home console space in the future.

"The iPhone disrupted the mobile industry and the development community in several profound ways," he said "Usage changed, friction reduced, and iTunes as a pre-established content path broke down the traditional carrier-provided content model.

"The iPad will disrupt the netbook and potentially laptop and living room videogame console model in an evolutionary way – building on those areas of disruption pioneered by the iPhone and the iPod before it."