IAP wins because the developer can capture more of the area under the curve for what people are willing to spend to the play the game.
With traditional games, you either pay the $10 or you dont. Once you have bought the game, you are done. Maybe you can buy an expanion pack later, or a tshirt, but the developer literally is out of ways for you to spend money.
With IAP, players can pay as little or as much as they want.
The danger is that the game can become less fun if you are always being prompted to spend more money. But I think there are games that do it well. I have spend over $100 playing Valve's TF2, a game that is free-to-play, and I don't regret it.
With traditional games, you either pay the $10 or you dont. Once you have bought the game, you are done. Maybe you can buy an expanion pack later, or a tshirt, but the developer literally is out of ways for you to spend money.
With IAP, players can pay as little or as much as they want.
The danger is that the game can become less fun if you are always being prompted to spend more money. But I think there are games that do it well. I have spend over $100 playing Valve's TF2, a game that is free-to-play, and I don't regret it.