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Big Bucks Elusive for App Store Developers

'App Store Millionaires' few and far between

By Nick McMaster,  Newser Staff

Posted Oct 7, 2009 5:34 PM CDT

(Newser) – The popularity of the iPhone turned Apple’s App Store into a gold rush for developers. Lured by a deal that allows app makers to keep 70% of revenue, thousands poured into the field. The reality, however, has not lived up to the hype. Most lose money and even those with top sellers pull in less than expected. App Store developers interviewed by Newsweek describe the stress of investing large amounts of time and money into a project, hoping it will stand out among thousands of other applications.

"It's kind of a crapshoot," says the designer of Trism, and early App Store hit. ”I think we've reached a point where people are thinking I shouldn't quit my day job for this." Even when one does have a successful game, the rewards are often thin after development, design, and marketing costs. What’s worse, the big boys have invaded—only one app currently in the top 10 was built by an independent publisher.


MINI Liquid Assets is available for download at no charge from the iTunes App store.
MINI "Liquid Assets" is available for download at no charge from the iTunes App store.   (PRNewsFoto/BMW Group Financial Services)
Glu Mobile's critically-acclaimed original title, Space Monkey, is available for iPhone and iPod touch from Apple's App Store.
Glu Mobile's critically-acclaimed original title, Space Monkey, is available for iPhone and iPod touch from Apple's App Store.   (Graphic:Business Wire)
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We made enough to live, but not nearly as much as if we kept our jobs at a regular game company.
- Nathan Hunley, developer of 'Dizzy Bee'

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COMMENTS
Showing 3 of 5 comments
TheInterested
Oct 8, 2009 4:14 AM CDT
-alchemy through image-
TheInterested
Oct 8, 2009 4:12 AM CDT
"Apps," it's short for applications. computer applications used to be things that only nerds got excited about--but then so were mp3 players and computers for that matter. -at the heart of apple lies alchemy-
yummines
Oct 8, 2009 1:24 AM CDT
well, its to be expected that big companies would start to make apps on the iphone and become big. obviously there isnt that much money to be gained from iphone apps, they aren't meant to be big.

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