Skip to main content

Freemium game developer reveals the dirty truths behind in-app purchases

apple and supercell partner for charity microtransactions clash of clans
Image used with permission by copyright holder
Much has been made in recent years about the rise of the so-called “freemium” model sweeping games on mobile platforms, luring users in with free initial downloads and making boatloads of profit through countless, in-app micro-transactions. Despite several high-profile lawsuits forcing Apple and Google to temper the more exploitative elements of the practice, the model is thriving, with apps like Game of WarClash of Clans, and Candy Crush dominating the top-grossing charts. The vast majority of writing on the subject focuses on the consumer perspective, and how the distorted value proposition of these supposedly free games has eroded trust between players and developer.

Less attention has been given to the developers’ side of the equation. A revealing piece on Touch Arcade, written by an anonymous producer of major, free to play games, has pulled back the curtain on the machinery behind these massively profitable games, and the truth is even ickier than most of us have probably realized. Note that while the anonymous authorship of the piece means that its revelations could be taken with a grain of salt, Touch Arcade is a reputable and well-connected news source for the mobile gaming field, giving this story the weight of credibility.

The writer describes him or herself as “a senior producer at a free-to-play games company” that has worked for several major companies. You have almost certainly played or are playing a game that this person produced or worked on in some significant capacity. Originally a console game producer, they joined mobile games in the early days of the iPhone and witnessed the whole evolution that brought us to where we are today.

The most troubling revelation of the story is how much personal data developers skim about their players, and then use to target them for in-app purchases:

“This is about how we can target you, because we (and our partners) know everything about you. We know where you live, we know your income level, we know your relationships, your favorite sports teams, your political preferences. We know when you go to work, and where you work. We can target an event to start for you when we know you have a long weekend coming up. We own you.”

As is so often the case, the road to this dystopian present started innocently enough. In order to balance their games to be as enjoyable and accessible as possible, developers started to track player behavior. At first this just allowed them to do things like adjust the difficulty of particular levels and “balance the game in the wild.” Trouble started when the engineers started to look at not just the in-game data, but also the metadata about when people were playing.

“We know where you live, we know your income level, we know your relationships, your favorite sports teams, your political preferences … We own you.”

“During a meeting about the game, the guy who ran our website brought up some interesting information. He started watching the Web logs and seeing all the connections to the JSON file [which tracked in-game behavior]. Unbeknownst to him (or our team) he was getting us a DAU [daily active users]. For the engineering and production teams, this was just a neat thing to know, a feel good ‘look how many people love our game’ statistic. The CEO saw something else.”

Like sharks to the smell of blood, upper management developed an insatiable hunger for data about when, where, and how users were playing their games. They realized the potential this information held for getting players to buy more things, or convince their friends to play as well. Particular focus was given to the best way to find “whales” — the minority, high-spending users that account for the most profit in freemium games.

“Time passed, Free to Play became a thing. I went from company to company. Each time, every new project became less and less about how we can do cool things, and more about how we can track and target users to get the most whales possible, boost chart position and retain users to shove as many ads on them as possible.”

The widespread adoption of Facebook was the turning point. Like marketers of all kinds, developers mine Facebook’s rich stores of data to build creepily intimate portraits of how you play their games, so you can be targeted with personalized push notifications and store specials optimized to maximize the likelihood that you will spend money. Even if you do not actively use Facebook, your connections reveal a lot about you. As Edward Snowden’s NSA revelations demonstrated, a dangerously complete portrait of a person can be developed just from the metadata of their connections and communications, even without any actual content.

If you are a whale, the stalking goes to an even creepier level. “You spend enough money, we will friend you. Not officially, but with a fake account. Maybe it’s a hot girl who shows too much cleavage? That’s us. We learned as much before friending you, but once you let us in, we have the keys to the kingdom. We will use everything to figure out how to sell to you.” The writer then goes on to describe a particular whale who lived in Saudi Arabia, but loved American football, and how they created virtual items based on his favorite teams to sell just to him.

The same data that was once used to maximize fun is now being used to maximize profitability, with developers going so far as to manipulate gameplay itself. “We will flat out adjust a game to make it behave just like it did last time the person bought IAP. Was a level too hard? Well now they are all that same difficulty.”

If this makes you uncomfortable, then your only recourse is to opt out. Like lunch, there ain’t no such thing as a free game. Vote with your wallet and buy games with an up-front cost, or else publishers will continue to focus on manipulative tactics as the only way to extract profit from games.

Editors' Recommendations

Will Fulton
Former Digital Trends Contributor
Will Fulton is a New York-based writer and theater-maker. In 2011 he co-founded mythic theater company AntiMatter Collective…
Google is launching a powerful new AI app for your Android phone
Google Gemini app on Android.

Remember Bard, Google’s answer to ChatGPT? Well, it is now officially called Gemini. Also, all those fancy AI features that previously went by the name Duet AI have been folded under the Gemini branding. In case you haven’t been following up all the AI development flood, the name is derived from the multi-modal large language model of the same name.

To go with the renaming efforts, Google has launched a standalone Gemini app on Android. Moreover, the Gemini experience is also being made available to iPhone users within the Google app on iOS. But wait, there’s more.

Read more
Fortnite is coming back to iOS, but Epic Games still isn’t happy about it
Solid Snake aiming a pistol out of a box in Fortnite.

Fortnite is set to come back to iOS in Europe sometime in 2024. This will mark the first time a natively running version of Fortnite will be available on iOS since Apple removed the game from the App Store in 2020.

Apple did so at the time because Epic tried to use its own third-party payment system, kicking off a series of legal battles in an attempt to get Apple to open up its platform more. Although those legal battles have yielded mixed results for Epic, a newly passed Digital Markets Act in the European Union is forcing Apple to do things like "allow third parties to inter-operate with the gatekeeper’s own services in certain specific situations" and "allow their business users to promote their offer and conclude contracts with their customers outside the gatekeeper’s platform."

Read more
A big change is coming to the iPhone — but only for some people
A person holding the Apple iPhone 15 Plus.

Big changes are coming to the iPhone this year. On January 25, Apple announced a slew of changes coming to iOS — including the ability to sideload applications and download apps from alternative/third-party app stores.

These are things you've been able to do on Android for years, but have long been absent from the iPhone. The Play Store is the primary way to download apps on Android, but you can also manually download APK files from any website that has them available. Similarly, you can use alternative app stores like the Samsung Galaxy Store and Amazon App Store. When iOS 17.4 releases later this year, iPhone users will finally be able to do similar things.

Read more