The Rise of Web Stores in Gaming: A Game-Changing Revenue Strategy

Editor's note: This content was originally published on Game Makers, where our Chief Marketing Officer Gil Tov-Ly was invited to talk with Joseph Kim about the rise of web stores and their impact on publishers' revenue.

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Watch the episode below or continue reading for the highlights.

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🎧 Listen on Spotify, Apple Podcasts, or Anchor

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How it works

Mobile web stores enable game developers to manage payments from their players directly rather than using the existing built-in app store payment mechanism.

Managing customer payments directly enables game studios to avoid paying the 30% app store payment fees.

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The gaming industry is witnessing a significant shift in how studios monetize their games, with web stores emerging as a powerful alternative to direct app store purchases. Here's what every game executive and product leader needs to know about this transformative trend.

🔑 Key Trends and Numbers

• In just three years, Tov-Ly suggests over 65% of top-grossing mobile game studios have launched their own web stores
• Some game studios are reporting up to 40% of their revenue now coming from web stores
• Studios implementing web stores have seen 20-30% increases in total revenue
• Appcharge, a leading web store platform, has reached a $200M annual revenue run rate in just 2 years

💰 Economic Benefits

• Higher Margins: Studios keep ~95% of revenue from web store purchases vs. 70% through traditional app stores
• Expanded Revenue Opportunities: Players often spend more when given additional purchasing options
• VIP Player Focus: Web stores are particularly effective for games with high-value players (whales)
• Market Size: The in-app purchase market ($110B currently) is expected to grow to $200B by 2030, with web stores potentially capturing 10-20% of that market

🎮 Best Practices for Success

• Game Genre Matters: Games with significant spending differentials between average and VIP players (like casino games) see better web store adoption
• Trust Building: Ensure web stores maintain a professional look and feel aligned with the game's brand
• Player Experience: Focus on seamless integration and clear value proposition for players
• VIP Strategy: Consider making web stores exclusive to VIP players initially to build momentum

🛠️ Implementation Considerations

Build vs. Partner: Studios can build in-house (requiring significant resources) or partner with specialized providers.

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Feature Requirements:

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• Payment processing and fraud prevention
• Multiple currency support
• Local payment methods
• Tax compliance
• User authentication
• Analytics and tracking

🚫 Current Limitations

• Most regions still restrict in-app links to web stores
• Studios cannot actively promote web stores within their games
• Platform constraints on payment provider choices remain
• Geographic regulations vary

🔮 Future Outlook

• Alternative app stores (like Epic Games Store on iOS in the EU) are beginning to emerge
• Regulatory changes may enable more direct player relationships
• The industry is moving toward a multi-channel distribution and monetization model
• Web stores are becoming the "new norm" rather than just a trend

💡 Strategic Benefits Beyond Revenue

• Direct Player Relationships: Build stronger connections without platform intermediaries
• Marketing Control: Ability to run direct promotional campaigns
• Data Ownership: Better understanding of player behavior and preferences
• Flexibility: More control over pricing and promotional strategies
• Player Engagement: Web stores can become an additional meta-game element for engaged players

For game studios considering web store implementation, it's crucial to understand that success requires more than just technical implementation - it needs a strategic approach to player communication, value proposition, and long-term relationship building. As the industry continues to evolve, web stores are becoming an increasingly important part of a comprehensive monetization strategy.