Economics & Advantages of Mobile Web Stores

🎧 Listen on Spotify, Apple Podcasts, or Anchor

Speakers:

• Joseph Kim. CEO at Lila Games.
• Gil Tov-Ly. CMO at Appcharge.

🤓 How It Works

Mobile web stores enable game developers to manage payments from their players directly rather than using the existing built-in app store payment mechanism.

Managing customer payments directly enables game studios to avoid paying the 30% app store payment fees.

The gaming industry is witnessing a significant shift in how studios monetize their games, with web stores emerging as a powerful alternative to direct app store purchases. Here’s what every game executive and product leader needs to know about this transformative trend.

🔑 Key Trends and Numbers

• In just three years, Tov-Ly suggests over 65% of top-grossing mobile game studios have launched their own web stores
• Some game studios are reporting up to 40% of their revenue now coming from web stores
• Studios implementing web stores have seen 20-30% increases in total revenue
• Appcharge, a leading web store platform, has reached a $200M annual revenue run rate in just 2 years

💰 Economic Benefits

• Higher Margins: Studios keep ~95% of revenue from web store purchases vs. 70% through traditional app stores
• Expanded Revenue Opportunities: Players often spend more when given additional purchasing options
• VIP Player Focus: Web stores are particularly effective for games with high-value players (whales)
• Market Size: The in-app purchase market ($110B currently) is expected to grow to $200B by 2030, with web stores potentially capturing 10-20% of that market

🎮 Best Practices for Success

• Game Genre Matters: Games with significant spending differentials between average and VIP players (like casino games) see better web store adoption
• Trust Building: Ensure web stores maintain a professional look and feel aligned with the game’s brand
• Player Experience: Focus on seamless integration and clear value proposition for players
• VIP Strategy: Consider making web stores exclusive to VIP players initially to build momentum

🛠️ Implementation Considerations

• Build vs. Partner: Studios can build in-house (requiring significant resources) or partner with specialized providers
• Feature Requirements:
  • Payment processing and fraud prevention
  • Multiple currency support
  • Local payment methods
  • Tax compliance
  • User authentication
  • Analytics and tracking

🚫 Current Limitations

• Most regions still restrict in-app links to web stores
• Studios cannot actively promote web stores within their games
• Platform constraints on payment provider choices remain
• Geographic regulations vary

🔮 Future Outlook

• Alternative app stores (like Epic Games Store on iOS in the EU) are beginning to emerge
• Regulatory changes may enable more direct player relationships
• The industry is moving toward a multi-channel distribution and monetization model
• Web stores are becoming the “new norm” rather than just a trend

💡 Strategic Benefits Beyond Revenue

• Direct Player Relationships: Build stronger connections without platform intermediaries
• Marketing Control: Ability to run direct promotional campaigns
• Data Ownership: Better understanding of player behavior and preferences
• Flexibility: More control over pricing and promotional strategies
• Player Engagement: Web stores can become an additional meta-game element for engaged players

For game studios considering web store implementation, it’s crucial to understand that success requires more than just technical implementation – it needs a strategic approach to player communication, value proposition, and long-term relationship building. As the industry continues to evolve, web stores are becoming an increasingly important part of a comprehensive monetization strategy.

Have you implemented a web store for your game? I’d love to hear about your experiences in the comments below!

The Big Oxmox advised her not to do so, because there were thousands of bad Commas, wild Question Marks and devious Semikoli, but the Little Blind Text didn’t listen. She packed her seven versalia, put her initial into the belt and made herself on the way. When she reached the first hills of the Italic Mountains, she had a last view back on the skyline of her hometown Bookmarksgrove, the headline of Alphabet Village and the subline of her own road, the Line Lane. Pityful a rethoric question ran over her cheek, then she continued her way. On her way she met a copy.

Separated they live in Bookmarksgrove right at the coast of the Semantics, a large language ocean. A small river named Duden flows by their place and supplies it with the necessary regelialia. It is a paradisematic country, in which roasted parts of sentences fly into your mouth. Even the all-powerful Pointing has no control about the blind texts it is an almost unorthographic life One day however a small line of blind text by the name of Lorem Ipsum decided to leave for the far World of Grammar.

The Big Oxmox advised her not to do so, because there were thousands of bad Commas, wild Question Marks and devious Semikoli, but the Little Blind Text didn’t listen. She packed her seven versalia, put her initial into the belt and made herself on the way.

l using her.Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts. Separated they live in Bookmarksgrove right at the coast of the Semantics, a large language ocean. A small river named Duden flows by their place and supplies it with the necessary regelialia.