Gaming
SuperScale report reveals game development’s mortality rate – overwhelming majority die within 3 years!
The SuperScale Good Games Don’t Die white paper reveals 83% of mobile games die in 3 years and 43% are killed in development
SuperScale, the revenue growth engine for mobile games, today unveils startling new research about the mortality rate of mobile games development. Based on data from SuperScale’s Good Games Don’t Die white paper published today, it reveals that a staggering 83% of launched games die within three years, and 43% of games are killed in development before they launch, clearly illustrating significant issues prevalent in contemporary mobile game development.
The new study draws on interviews conducted with 500 game developers across the UK and US, carried out by Atomik Research on behalf of SuperScale. The report reveals that regardless of this critical high failure rate, 78% of mobile game developers prefer to work on new titles, creating a catch-22 scenario for the $96.2 billion international mobile games industry. Trends like global recessionary pressures, the redundancy of 6,000+ developers in 2023, and a general downturn in investment throughout the sector are echoed in the report in which 32% of developers conducted layoffs, and nearly a quarter came close to shutting down the business.
The report’s findings also provide insights into the human impact of the high failure rate of mobile games; ranging from loss of motivation, risk aversion and increased commercial focus. Creative unfulfillment from cancellations was reported by 30% of junior developers with less than one year of experience.
Given the endemic high failure rate in mobile gaming, the SuperScale white paper explores the untapped opportunities present in the ‘good games’ that died either in development or since launch. These ‘legacy games’ are titles that no longer receive regular UA investments or live-op updates, or those that are declining in revenue. Based on the study data, a mobile gaming portfolio features an average of 18 legacy games, and these could hold significant further commercial potential for developers and publishers. Across its 18 pages, the Good Games Don’t Die white paper unveils current trends in additional categories such as outsourcing, performance measurement, and monetization methods, which can be utilized to unlock the potential of good games which ‘died’.
Ivan Trancik, CEO and Founder of SuperScale, commented:
“These are volatile times for the games industry. Many mobile game developers are finding it hard to remain profitable in the face of challenges such as ATT, heavy competition in a mature mobile market, and macroeconomic conditions like high inflation. 83% of games are flat-lining in the first three years is an eye-opening statistic, which indicates a new mindset is needed within the industry. Findings from the ‘Good Games Don’t Die’ white paper serve as a wake-up call for the industry, a source of inspiration with actionable data; equipping developers and publishers with insight on how revenue can be maximized across their portfolio – for games both new and old.”
He added:
“The art and business of making games is often borne from a place of indescribable passion, and not always for pure commercial gain. We believe there is an opportunity for the entire games industry to reflect on the incredible gaming content that has already been created, and to take a second look at what can be done to inject new life into them.”
To hear more from Ivan, sign up here and catch the SuperScale team’s deep-dive on how to fix underperforming mobile games.
Key findings:
Recession in Gaming: 32% of studios have made layoffs in the past 12 months, 40% of studios have outsourced development tasks in the last 12 months. Collectible card games and hypercasual developers were affected most. Only a third of studios (32%) said they did not have to make layoffs, downsize or shut down.
Monetizing mobile games: 62% of developers are using LiveOps in their most profitable titles, and 37% of studios update their most profitable titles weekly, with less than half pushing out monthly updates.
Game failure and success: 43% of games in development are killed before they launch, 76% of launched games hit peak revenue within year one, 83% of mobile games die within three years and a mere 5% receive support beyond seven years.
Passion versus profit: 78% of developers prefer to work on new titles, 30% of developers believe a focus on legacy games is the path forward in the current industry climate. 37% of respondents said that industry uncertainty is stopping them from developing new games, while 30% said the market is too difficult to succeed in right now, and 30% also believe their niche is too competitive.
Gaming
The mobile gaming market is growing and attracting new companies. GAMIVO is the latest example
Usually, consoles and PCs come to mind when discussing the gaming industry. The mobile sector is often treated as a child of a lesser god, even though it generates almost as much revenue as console and PC combined. Some companies can see this potential. For instance, the e-commerce platform GAMIVO has recently entered the mobile market, allowing players to buy in-game items cheaper.
Back on course
The entire video game industry has evolved incredibly, but the most spectacular has been the growth of the mobile sector. It expanded from 36.9 million dollars in 2016 to 93.2 billion in 2021. Unfortunately, the gaming market suffered from a decline that stemmed from the overoptimism of the pandemic era. As a result, the mobile gaming industry revenues dropped to 92.2 billion in 2022 and to 90.5 billion in 2023. Recent information has indicated this was a necessary correction rather than a long-term trend.
The latest Newzoo report, issued in August 2024, shows that the industry is on the right track again. According to analysts, the mobile sector will generate revenues of $92.6 billion, representing +3.0% growth year-on-year. It’s nearly half of the entire gaming industry.
Billions of players
Revenues are crucial, but they only show part of the story. To fully understand the size and potential of mobile gaming, it’s necessary to consider the number of players, which constantly grew even when revenues dropped. Newzoo estimates that it will reach 2.8 billion in 2024. It means that almost twice as many people play on mobile devices than on PCs and consoles combined. Currently, every third person on Earth plays on mobile devices, and there’s still space for further growth.
“There are emerging markets where smartphones and mobile networks can expand, providing new potential players. Furthermore, this type of entertainment has a low entry barrier because most popular games are free and don’t require high-end devices,” explains Mateusz Śmieżewski, the CEO at GAMIVO.
One hobby, different habits
GAMIVO is an example of a company that has recently joined the party to get a piece of the mobile pie. “We examined the mobile market for a very long time, trying to find a suitable place for us. It’s essential to understand that mobile gaming and mobile gamers differ from their PC or console counterparts. You can’t do the same things you do with PC and consoles and hope to replicate your success,” said Mateusz Śmieżewski.
Studies confirm this observation. Average PC and console players spend about 2.1 hours a day in virtual worlds. It’s half an hour more than mobile gamers. However, things get interesting when we take a look at playtime per week, which is the same for mobile and console (5.4 hours) and slightly longer for PC (5.7 hours). Moreover, typical PC and console owners play 2.6 and 2.7 days a week, respectively, while mobile players play 3.4 days per week.
Those statistics prove that PC and console players are more dedicated, spending more time in games’ worlds once they enter them. However, mobile gamers prefer shorter but more frequent sessions. They play while commuting or have a short amount of free time.
“Mobile players are more willing to uninstall games and give another title a chance. Hence, the gameplay has to be captivating and designed to provide quick but intense sessions.
Furthermore, even though the average weekly playtime is identical to PC players, many mobile players don’t think of themselves as gamers,” clarifies Mateusz Śmieżewski.
Another major difference regards the way in which revenue is generated. PC and console games traditionally represent the premium model, where players buy the game. Most popular mobile releases are free and generate revenue with microtransactions. Almost all titles allow players to spend their real money on virtual coins, crystals, and other items that can be used to unlock additional content or reduce cooldowns.
Entering the mobile market
Those contrasts and nuances scare most companies from the mobile market. Let’s see how GAMIVO has coped with this.
“We decided to launch a new product category dedicated to mobile gamers. Our model allows them to top up in-game accounts cheaply. As a result, they can save up to 30% on buying virtual items, upgrades, and other content. The GAMIVO offer includes the most popular mobile titles, such as Genshin Impact and PUBG Mobile, and still extends,” describes Mateusz Śmieżewski.
“We dedicated a lot of time to research and analyses. Also, the development process required a lot of work to provide GAMIVO customers with safe transactions and a user-friendly environment. The first reactions are very positive, confirming our belief that our decision was right and there is still more space in the mobile game market,” concludes the GAMIVO CEO.
Gaming
AI Gives Horses for Courses True Meaning in ‘Owners Club’ Racing Game
Invincible GG, a groundbreaking competitive gaming platform and technology company, has outlined the latest AI developments of its interactive mobile horse racing game, Owners Club, which is set to provide a new injection of interest into the ancient sports of kings.
Following a successful game launch in Q3 2024 and activations at the Doncaster St. Leger and York Ebor festivals, thousands of Owners Club players have started to formulate an expansive game world that gives the masses the true feeling of horse ownership, breeding, and racing experiences.
Being founded on the latest in AI and Web3 technologies allows the game to evolve with more nuance over time, with the former being implemented to enhance users’ strategic horse development and create developing traits and performance benefits that can lead to further self-training opportunities in-game.
Each horse has its own unique, nuanced genetics and racing traits. These can be trained via evolving in-game activity—which will include collaborative intelligence in future releases and passed on to future colts and fillies to create racing dynasties that will stand the test of time while also bringing in lucrative in-game winnings and potential syndicate stud earnings.
Further features include an AI-powered event simulation engine (instead of predetermined RNGs), and sophisticated algorithms that factor in horse health, jockey decisions, and environmental factors that ensure Owners Club races maintain tension and excitement throughout, just as racing fans in the real world would experience from the grandstand.
Jonathan Strause, Invincible GG CEO, said: “Gamers of today want more than static, insular game worlds. They’re looking for immersive experiences in evolving ecosystems, multiplayer competition, and the feeling that they’re fully integrated into the game. Owners Club is offering just that for both current racing enthusiasts and the next generation of racing fans.
“With unrivaled AI integration into the theoretically unlimited stable of in-game horses, combined with back-end Web3 technology that empowers players to easily realize what true thoroughbred ownership and training feels like, Owners Club players can forge their own relationship with horse racing via the gamification of training, racing, and trading in the app, which can only help the future engagement of this ancient pastime.”
Owners Club will be showcased to its biggest live audience yet at the QIPCO British Champions Day on 19th October, 2024, with live races broadcasted as-live to screens around Ascot, with various prizes on offer for the winning owners.
Gaming
Evoplay introduces action-packed skill-based title Adrenaline Rush to wider operator network
Evoplay, the award-winning game development studio, is expanding the availability of its flagship 3D racing title Adrenaline Rush to all of its operator partners, following a successful exclusive release.
Adrenaline Rush combines the thrill of high-speed racing skill-based gaming mechanics, providing an immersive experience for players who enjoy a strategic and competitive edge in their gameplay. Players can engage in intense races where success is determined by both speed and skill, making it a standout title in Evoplay’s diverse portfolio.
Following its main global release on October 8th, Evoplay is set to launch two additional versions of the game, slot title Adrenaline Rush: Super Boost on October 22nd, and crash game Adrenaline Rush: XCrash on November 5th, creating an expanded offering that caters to a variety of player preferences.
Released initially as an exclusive, Adrenaline Rush has already garnered attention for its innovative mechanics and immersive gameplay, earning the Skill Games Supplier award at the prestigious EGR B2B Awards. With this wider release, Evoplay’s global operator network will now be able to offer the title to an even broader audience.
Ivan Kravchuk, CEO at Evoplay, said: “Adrenaline Rush is a one-of-a-kind experience that perfectly blends competitive racing with skill-based gaming. Since its launch, it has resonated strongly with players, and we’re thrilled to now offer this exciting title to all of our operator partners globally.”
“The upcoming releases of the equally popular slot and crash versions will ensure that Adrenaline Rush remains a fan favourite across multiple formats.”
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