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At first, 200,000 downloads sounded impressive, getting into the top apps lists is also impressive, but the problem is outlined in the second paragraph.

>>Gasketball was released for free, with a one-time in-app purchase that unlocks the rest of the game offered for $2.99. The conversion rate to the paid version of the game sits at 0.67%.

It seems like they should figure out why the conversion rate is low (e.g. perhaps the free version offers too much functionality for free, perhaps the free version quality is poor and users aren't motivated to pay more etc...)

Conversion rates around 1% are typical, but in this case even if the conversion rate was 4% (which would be very good) it would only translate to ~17k

>>“A common complaint on the release build of Gasketball was that even our friends couldn’t find out how to buy the game. Obviously that’s a huge problem and we’ve remedied that in this patch update that we just released,” Wohlwend said

The reason the conversions are so low is covered in the story. The game doesn't make the fact that there's a full version very discoverable and provides enough content that many people probably didn't think there was any more to it.

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