Earlier this month a report by Flurry revealed that:

Flurry: Free Games Generate More Revenue Than Paid Games (seasonal component?)

Revenue from free games in-app purchases overtook revenue from paid games during the course of this year. Flurry’s latest report sheds some light on why this is so.

Consumers Spend Average of $14 per Transaction in iOS and Android Freemium Games

Flurry report notes that while only (relatively speaking) 13% of in-app purchases are over $20, this 13% of in-app purchases provides 51% of revenue. Clearly, there is a small but significant group of people willing to pay real money for virtual goods and virtual game currency.

Via VentureBeat GamesBeat