Which is better? Revenue from game sales or revenue from advertising on a popular free game? From Jenna Wortham, The New York Times:
Although Rovio has released two dozen other mobile games, none has come close to the success of “Angry Birds,” which cost about $100,000 to make. Since it was released a year ago, 50 million copies have been downloaded, and Apple said last week that it was the best-selling iPhone app of 2010. The free version of the game for phones running Google’s Android software, released in October, should be producing $1 million a month in advertising revenue by the end of this year.
$1-million a month in ad revenue for the free version? Why? Because the ads get in the way and users accidentally click them.