Glu goes freemium with new slate of games

Games are all about the future. What comes out today is already outdated. It's all about what's coming next, and according to publisher Glu you can expect freemium to reign supreme in the years to come.

New titles revealed last week demonstrate the company's shift away from the traditional premium model to the more controversial freemium setup. With hits like Glyder 2,Beat It!, and Build-a-lot defining Glu's image on iPhone and iPod touch, the transition to freemium is a dramatic one.

"Freemium is a strategy that's all about reach," explains CEO Niccolo de Masi. In an effort to reach a wider audience of mobile gamers, de Masi contends that dropping game prices and opting for in-app purchases - in short, freemium - is the best way to do just that. "In the long run, we're competing for people's time as much as we are their money."

De Masi recounts his observations of the Chinese mobile gaming industry in its transition to the freemium model. "There were a lot of growing pains for the Chinese as a few key innovators moved into freemium. Many thought it was a mistake, but it prevailed as gamers saw the benefits of the pricing structure. When I stand back, I see it moving in that direction here [in the US and Europe]."

In short, de Masi believes that critics of the freemium model are short-sighted and the feverish competition in mobile gaming makes freemium an inevitable reality.

From a gamer's perspective, that can be an exciting or alarming prospect. While the concept of free games is an attractive one, the fact is that most freemium games are of inferior quality. De Masi insists that Glu will be different. "We're not focusing on building games that monetise aggressively."

Instead, he looks to in-game advertising as a compromise. "Micro-transaction will dominate in the near future, but in the long run [in-game] ads will be the most effective means of bargaining for consumers' time."

The precise structure of Glu's freemium line-up remains to be seen - it isn't clear if titles like Gun Bros. (shown above) and ToyShop Adventures will be fully supported by ads or rely on in-app purchasing entirely - but clearly de Masi wants to move away from heavy-handed in-app purchasing. It's a lesson no doubt learned from complaints lodged against freemium's biggest fan, ngmoco.

Beyond iPhone and iPod touch, de Masi sees potential for Glu to explore other platforms. "iPad and Xbox Live are exciting new avenues of opportunity for Glu to get into the living room." The expected launch of Windows Phone 7 and continued success of iPad could see the introduction of new Glu games, if not ports of the company's most popular titles.

While the freemium approach has yet to fully prove itself on iPhone and iPod touch, it obviously has been a winning formula elsewhere. FarmVille has been a huge hit on Facebook and many ad-supported web browser games thrive.

These have been supported by casual gaming audiences, however, and not the hardcore mobile gamers that have made Glyder 2 a success.

The challenge for Glu will be courting those gamers with its new line of freemium titles. Magic Life, Gun Bros., and ToyShop Adventures at least deserve a look when they become available later this year.