Opinion: Why user acquisition prices are going through the roof, and why it's bad news for the mobile ecosystem
It costs a lot of money to acquire users for a mobile game right now. Over the past six months, we’ve heard companies throwing around per-user figures ranging from $1.50 (borderline unaffordable) to $3.00 (insane) to $6 (ludicrous).
For most developers, this is just way too much. Companies are only profitable when they earn more than they spend, and since mobile users are typically hard to convert and not terribly valuable even when they do, it’s either very hard — or mathematically impossible — to break even at these rates.
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