[thrwaeasddsaf]

You're oversimplifying, because the question isn't about paying to remove ads vs not paying and seeing ads, but about paying and getting the product or not paying and not getting the product.

People's behavior depends on the circumstances they are given, and if "free (with ads)" is one choice, then indeed a lot of people will choose it over paying. However, if option is not given, it doesn't mean everyone who would've picked free are not going to pay at all.

There are some highly popular freemium/ad supported games but also lots of very popular games that you simply must pay for. Applying the 1% number from products where the choice is ad-free-or-paid to must-pay-for games and assuming they'd get 99x more users if given for free with ads is just completely wrong.

In general, people seem quite willing to pay for games (this may be less true in mobile, that's a rather different market). The challenge isn't that people don't want to pay, it's that the market is extremely saturated and it's hard to stand out from the crowd & produce a game that everyone wants to play over all the other choices.