Twitter and the various iPhone-related web sites (such as
TouchArcade's Forums) have been buzzing non-stop the last few days about Ngmoco's weekend announcement to remove Rolando 1 from the App Store to "make room" for the new Rolando 2 on July 1. Rolando 2 features all new levels and game play, so its not being offered as a free update for existing Rolando 1 users. Rolando 2 is being marketed as a brand new, separate product. For those still interested in playing Rolando 1, Ngmoco encouraged people to buy a copy of it before it disappears. Ngmoco had stated that they would continue to provide support for Rolando 1, so nothing would change for existing users, only new sales would be discontinued after July 1.
Due to the public uproar that ensued, Ngmoco announced yesterday that they've
reversed their decision and plan to keep Rolando 1 in the App Store, but for the sake of exploring new business models, let's take a moment to dive a little deeper into Ngmoco's original experiment.
Rolando 1's retirement announcement left many fans scratching their heads, wondering why the removal. From a business perspective, it makes perfect sense for several reasons. For one, the announcement not only escalates Rolando 1 sales (get it before its gone), but it also heavily promotes the forthcoming release of Rolando 2. And two, if Rolando 2 is released with a higher price tag than Rolando 1, then the fear is that users will simply gravitate toward the cheaper original game. Unfortunately, based on the impulse buy nature of the current App Store architecture, price is often the key factor in app sales. Many angry fans asked Ngmoco to rethink their decision and keep Rolando 1 in the App Store with a reduced price of 99 cents, but honestly, that just makes the issue worse. At 99 cents, new sales from Rolando 1 would probably cannablize much of Rolando 2's potential sales.
The development of a sophisticated new game is a serious investment of time and money, so Ngmoco's focus on Rolando 2 sales is understandable. I can't blame them for wanting to have a successful new product launch -- its what all commercial developers strive for. They didn't want the sales of Rolando 2 being diluted by the original Rolando 1, since that could possibly negatively impact the future chart position of the new Rolando 2. And any iPhone developer knows that getting into the App Store's top sales charts equals valuable exposure, increased sales, and extended product longevity.
When placed in a business perspective, Ngmoco's move seems completely justifiable. So why were so many Rolando fans upset?
Even though CD-based console video games are frequently taken out of print (often replaced with new editions), that's a scenario that has been happening for decades now, so consumers are familiar with this physical product cycle. But users tend to view digital distribution as a totally different animal. Since there's no cost of goods or physical shipping, why would a game be discontinued? If the publisher is still in business and the related platform/device is still active, then their games should continue to be available for as long as there is a demand for them. Right? Well, if you're a user of that game, you'd probably high-five your friends with a "Hell, yes!", but I'm not sure the answer is that simple.
We've all come to love the App Store for being a reliable digital distribution system -- our little mobile safety net in the sky for re-downloading apps directly to our iPhones and iPod touches if we're away from our computer's backup iTunes Library. But we have to remember that the App Store is merely that: a storefront. We can't assume or expect all publishers to use the same business model, especially on a platform that's still so young. The App Store has only been open for one year and yet its already overflowing with more than 50,000 apps. Its getting so difficult for new apps to shine in such a crowded marketplace that developers are forced to try new marketing and sales strategies in the hopes of finding a big enough audience. Because without sufficient sales to support development, the future of those apps die.
The real issue here is a psychological one -- no one likes having something they treasure being taken away from them (even if a simple iTunes backup would prevent that problem). And Ngmoco's tactic is a relatively new one for the App Store ecosystem, so it seemed to have caught users off-guard.
While Ngmoco did change their minds and will
keep Rolando 1 in the App Store, I will admit that I was genuinely curious to see how their original plan would have played out, but now we'll never know (at least not until another publisher tries it). Obviously, the folks at Ngmoco weighed the potential ill will of their existing customers against the sales strategy of Rolando 2... and maintaining happy loyal customers won out in the end.
Hopefully, Ngmoco's kind gesture will be rewarded with a boost in Rolando 2 sales.
Ngmoco's initial plan to retire Rolando 1 could have ultimately proven to be a successful sales experiment. But Ngmoco has just put a smile back on a lot of faces with the return of Rolando 1, and that's never a bad thing, especially when many of their existing customers will probably buy more of their iPhone games in the future.
iPhone Insights by Dave WooldridgeLabels: iphone
