Earlier this month a report by Flurry revealed that:
Revenue from free games in-app purchases overtook revenue from paid games during the course of this year. Flurry’s latest report sheds some light on why this is so.
Flurry report notes that while only (relatively speaking) 13% of in-app purchases are over $20, this 13% of in-app purchases provides 51% of revenue. Clearly, there is a small but significant group of people willing to pay real money for virtual goods and virtual game currency.