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(lemmy.world)
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$5 as a one-time payment is not enough for a single developer to sustain his livelihood on.
And ultimately, "worth" is based on what the market decides.
You make valid points, however, I'd like to point out that most games on the play store don't cost a lot because the real costly transactions are in-app purchases. It's common, in my experience, for the popular free apps to have IAPs upwards of $100 for in-game currency.
There's also that matter of the no-cost version of the app. It seems perfectly usable, making the ad-removal an optional purchase.
Considering the smaller user-base and the finite economic value of life-time purchases I'd say $20 is fair. But that's my stated opinion and I have yet to put my money where my mouth is.
Very good point regarding micro transactions.