Microsoft Corporation (NASDAQ:MSFT) has released its latest Windows Store app download data. With more than 3 billion visitors to the platform since the Windows 10 release, majority of downloads have been attributed to games. This data is likely to facilitate investment decisions for developers and help them determine what segment is more popular amongst consumers — which in this scenario appears to be the gaming industry.
As per the company's official blog, Games accounted for 32% total downloads from Windows Store, with action-adventure category being the most popular gaming sub-category at almost 30% of total gaming downloads. Utilities and Tools ranked second at 15% share, while Music, Social, and Photos & Video download made up the top five most downloaded content.
Microsoft has further assisted developers by providing data for total app downloads versus apps available in that particular category, classified as "Total Opportunity by Category." If the developers' aim is to enhance their products downloads, they could analyze these categories to determine which one has the greatest potential and gaps and present a lucrative investment opportunity. Despite games being the most popular downloads, Navigation & Maps category has the greatest number of downloads per available app.
The data also explains the monetization of these downloads and which category and regions invoked greater paid transactions as opposed to others.
Majority of paid transactions originated from the US at 36%, while the UK, Germany, and France combined to register 25% of total paid downloads. Majority of downloaded apps were developed with English as the core app language. However, Microsoft notes that apps in other languages such as Russian, Italian, and Hindi have seen an increase in downloads in the last quarter.
This data can be useful for developers, who can now determine which market based on region and language generates more money than others. This revenue on Windows Store is derived from three major branches: paid apps, in-app purchases such as additional content or game customizations, and in-app advertisements.
Microsoft states that paid-apps download experienced a two-fold growth for both PC and tablet-based consumers in 2015's holiday season, as opposed to the same period in 2014. Windows 10 users helped generate almost five times more revenue per device as opposed to consumers using Windows 8. Paid-apps remain the lowest contributor to total revenue, but the company claims they have attained stability at a current 14% share.
The 37% share of Ad revenues may likely be higher in reality, as this figure only includes the revenue paid by Microsoft Advertising and does not account for revenues earned through other third-party ad networks. With this data out, developers now have a clear idea of which category of application, in which region/language, and in which app sub-category they need to invest their time and money in.
As for Microsoft, the Windows-maker would need to focus on how it can improve offerings on Windows Store in order to attract greater number of consumers to utilize its devices. While Windows 10 for PC is slowly gaining traction, the picture for smartphones remains weak; Microsoft accounted for only 2.9% of smartphone market share in the US for three month average ending December 2015.
Source: Microsoft Windows Store is Finally Making Some Money Through Games
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