Downloads and revenue are not indicators of a game’s success.
Many large games operate with a negative ROAS throughout their existence.
Despite impressive numbers, they often bring their owners nothing but losses.
So why do studios continue to buy traffic for such games and lose money?
Here are several reasons:
• Hope for profitability: Belief in a turnaround during the live-ops phase
• Competitive strategy: Securing traffic share to force competitors to bid higher.
• Inflating valuation: Boosting overall ARR before selling the company.
• Attracting investments: Demonstrating potential to draw in investors.
• Misjudgment: Sometimes, it’s simply foolishness. 🙂
There are rare cases where buying traffic for a loss-making game makes sense.
But it’s mostly an attempt to create the illusion of a successful game for investors or stakeholders.
Profit > Volume
