This week’s ranking check for G5 Entertainment is a continuation of the recent trends. Google Play is stuck in a downward spiral while iOS is keeping decent positions without managing to get to the next level. The big hope lies all the more on Secret Society, which continues to be ranked around the top 50 grossing games on iPad in the US (it also performs very well on other big iPad markets such as Germany, South Korea etc).
The big question is: How much are these rankings worth in real money? While it is straight forward to get the rankings of individual games, it is almost impossible to get the actual value of these rankings. Pocketgamer, Distimo and others are from time to time publishing bits and pieces about certain games’ performance and one of our readers was kind enough to sent us his thoughts on the subject:
“In a recent article on pocketgamer.com it said that e.g. “Fish out of Water” made some USD 15,000 a day from the US iPhone plus iPad market with a top grossing rank of around 60. Unfortunately, Secret Society is not performing that well on iPhone so we only should look at the iPad side of these USD 15,000. Assuming around 30% of the app store revenue in the US comes from iPad, it should be a reasonable assumption that around 30% of the USD 15,000 are iPad related as well. That would mean that “Fish out of Water” made some USD 4,500 a day with a top grossing ranking of around 60 in the US on iPad. Quarterly revenue for a consistent rank 60 US iPad game would then be 4500*90*6.6 = 2,673,000 SEK. Secret Society is currently ~50 meaning revenue would be higher than that if it holds the position. On top of that would come revenue from the rest of the world, and from iPhone.”
This seems to be an interesting approach of tackling the issue. www.forbes.com had a recent article titled “iPad app revene catching up with iPhone faster than expected” (http://www.forbes.com/sites/terokuittinen/2013/04/09/ipad-app-revenue-catching-up-with-iphone-faster-than-expected/). According to the article, iPad app revenue nearly doubled year-over-year between January 2012 and January 2013. This significantly outpaces iPhone growth. In download numbers, iPad app volume is still roughly 70% below iPhone app volume. But revenue generated by iPad apps is less than 30% below iPhone app revenue (see Appannie chart below). This might suggest that the calculation above could be even conservative, as Appannie’s findings indicate that roughly 40% of US iOS app store revenues are generated by the iPad.
Using the same reasoning above, a top 60 grossing iPad US ranking could therefore by worth: USD 15,000 x 40%= USD 6,000. Quarterly revenue would then be around SEK 3.5m, in current FX rates. Again, Secret Society is doing actually better than that for quite some time now, with a top grossing ranking around 50 in the US. On top of that, Secret Society is doing very well in other major countries as well (in some even better than in the US). We believe that around 35% of all global app revenue is generated in the US. For the sake of simplification we could than come to the conclusion that total revenues from Secret Society at is current performance level is around SEK 3.5m / 0.35 = SEK 10m.
We would appreciate to get input from those of you who have more inside knowledge in the matter. How much is a top grossing postion worth for iPad and iPhone in the US (or other countries for that matter)? Maybe some of you are developers that have had games at these levels? We are also very interested in the value of other top grossing position of course. Please send us a mail and let us know what your app has generated at certain top grossing positions. Also, please do not forget to cast your vote in the bestappever Android awards. Several G5 games are nominated and as you can see in the ranking check – all positive attention is highly needed. Vote here: http://nordicinvestor.net/2013/04/23/g5-entertainment-games-nominated-bestappever-android-awards-2013/
Number of G5 Entertainment games among the top grossing charts for iOS:
(We are screening the app markets of Australia, Brazil, Canada, China, France, Germany, Italy, Japan, Netherlands, Russia, South Korea, Spain, Sweden, UK and USA)
Number of G5 Entertainment games among the top grossing charts for Google Play:
(For Google Play, we are screening the app markets of Germany, Denmark, Sweden, and USA)
Secret Society top grossing rankings in USA on iPad:
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