Elbert Perez: "The gold rush of Windows Phone is now over"–why he is wrong

imageElbert Perez, the successful developer behind the Occasional Gamer company and many very popular games, has posted on his website that essentially the good times is over for early Windows Phone 7 developers, and that it is time to branch out to other platforms.

He writes:

The gold rush of Windows Phone is now over. With more and more apps flooding into the market the competition is getting harder. Money is not as good as it was, and the quick development method is less effective. Being stuck monetizing just on ad revenue alone sucks. Windows Phone needs IAP and it seems like it will be forever before it shows up.

I have a library of successful games that are screaming to be ported over to other platforms. This makes the porting process easier for me because I already have all the assets and design done for me. So I can concentrate on building the infrastructure of my multi platform strategy. Once I have better understanding on  going multi platform, I can resume creating new games :)

Now as an ad-driven enterprise I can understand why Elbert would feel low this time of the year.  Revenue from ads take an extremely deep dip in the first half of the year, after being extremely high at the end of the year, making this period pretty demoralizing. He is of course right that having an in-app purchasing element would remove control of his revenue from random advertising budgets to himself and his users, and this is an issue Microsoft does need to address urgently.  The reduced ad revenue however is pretty cyclical, and will average out over the course of a year.

While Elbert plans to spend his time porting his existing games to other platforms, he will be taking his eye off the ball right at the time when the Windows Phone ecosystem itself is getting a great boost with expansion of devices into numerous new markets. This should be the time he consolidates his brand on the Windows Phone 7 marketplace, rather than letting others come in and take his crown.

And lastly of course, there is very little guarantee of a return on investment taking his games to more developed and even more crowded application stores. If he felt Windows Phone Marketplace was getting crowded with 70,000 apps, I wonder how he will deal with 400 and 550,000 competitors on Android and iOS.

Of course Elbert has been nothing if not transparent, and we look forward to seeing how his venture turns out, and of course wish him the best of luck personally.

Via windowsphonedaily.com

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