Rumor: App Store Plus to offer premium content

Rumors are swirling about Apple partnering with game manufacturers to provide premium content via the App Store, but as usual, everyone's staying mum on the details.

With the App Store filling up so fast and furiously, there have long been rumors floating around regarding a more exclusive sales venue for high-end software sales. The latest rumor comes courtesy of Pocket Gamer, suggesting that Apple might invite developers like EA Mobile and Gameloft into an exclusive arena where they could sell games for $19.99 each. Of course, as is the norm with such rumors, Apple, EA Mobile, and Gameloft all refused to comment on the speculation.

A premium App Store, an "App Store Plus" if you will, does make sense on a certain level, and yet the iTunes Store has done just fine with a single storefront augmented by targeted sales campaigns. A simple visit to the App Store shows how effectively the current system already works at catching the shopper's eye and funneling buyers to the proper areas. Banner ads already promote software and a "new and noteworthy" section brings discovery into the equation. At best, an App Store Plus might work as a boutique sub-page, showcasing a select collection of the best iPhone applications available.

The suggested $19.99 price point is not out of line when compared to other handheld gaming systems, but seems a little high when contrasted against the $7.99 SEGA Super Monkey Ball gold standard. Super Monkey Ball, which debuted at $9.99, reached its current price point in December. Electronic Arts' Spore Origins currently retails for $5.99 and SimCity goes for $7.99.

Price labels, or at least the lack thereof, represent the biggest difference between the iTunes Store front page and the App Store front page. Unlike the iTunes Store front page, which brandishes its yellow-colored price points and sales, the App Store remains distinctly empty of any cost information. You can see that in the two screen shots in the image on this post. There doesn't seem to be a sales point to advertise because the market is still searching for the application "standard". Without that standard, it's hard to put your application on sale. Can a $4.99 app be "on sale" when most units are retailing for $0.99 or $1.99?

The App Store is just six months old. Developers are still exploring pricing structures and trying to balance sales against application sustainability. The idea of a premium App Store distribution channel makes sense in terms of promoting high-quality products, but there's simply no data out there beyond unfounded rumor as to when Apple might introduce it, how it might do so, and how much Apple would charge consumers to buy in.

source:http://arstechnica.com/apple/news/2009/01/rumor-app-store-plus-to-offer-premium-content.ars