Windows Store: Paid Apps start at $1.49
With the Metro interface in Windows 8 comes Windows Store, a marketplace for free and commercial apps that users can download and install on their systems. The store is interesting for a number of reasons: it gives Windows users for the first time an option to download, install and update applications in a streamlined interface. And for Microsoft, it is a new revenue opportunity as the company will earn money from the store as well.
A new blog post at the Windows Store for developers blog walks developers through the money making opportunities that Windows Store offers. It needs to be noted that developers can offer their apps for free as well. But if they want to make money from the apps, they have multiple monetization options at their disposal:
- The straightforward option is to sell apps right away in the store. The price tiers range from $1.49 to $999.99. The lowest price feels a bit on the high side, but maybe that is just me. You can also expect one of those bogus luxury apps to hit the $999 mark soon after the store goes life.
- Offer a trial version of the app first, and charge later once the user has tried and tested the app on the system. According to Microsoft, this increases the revenue by up to five times when compared to apps that need to be purchased right away before they can be used.
- In app purchases to make money from users who are buying features, add-ons or items during use of the application.
- With advertisement which is displayed to users who work with the app
- Billing users using external billing mechanisms
As far as pricing goes, the selected price for an app will automatically be converted into other currencies using foreign exchange rates. Microsoft pays companies and developers once a month if they have at least accumulated $200 in earnings. Microsoft's cut is 30% until an app reaches $25,000, after which it drops to 20%.
Closing Words
It is too early to tell how successful the Windows Store will become in Windows 8. What is almost certain though is that Microsoft will integrate the store into every new version of the operating system that comes out. For them it is a new revenue opportunity and a way of controlling part of the operating system's software distribution model.
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So – I was wondering – do you think that sometime in the not so distant future – MS will be blocking 3rd party applications, or making it horribly difficult to run them on Windows?
They are doing it now in Metro, not in the future.
Like with main paid version of Advanced system care suddenly there was new version and main old version was not working anymore. I had to buy a new license but I did not want that because main old version was still working more than good enough.
Microsoft is going to do the same. Making sure that the never make any loss anymore like they did this year.
Another ferry valid point is that people who right now just can effort the run the systems in the future, are not able to do that anymore.
This because many $1.49 makes a lot of money. And its always a lot of $1.49 ‘s to make a system run the way it should.