Game Development Doesn’t Mean Game Business
The financial success of game studios relies on business strategies.
Hello mobile game enthusiasts! 🤩
Great to see you all!
The gaming industry continues to show its tough side.😒
Back in 2019, it was almost routine to see games achieving 100 million downloads on Android and 30 million on iOS (1/3 ratio)… But now, that seems almost impossible, even 100m-15m is challenging… Nobody is happy with the situation. Is this the end of the world? Not at all. But it does call for a reckoning. Game development shouldn’t be profitable for everyone; only the bests should remain. This is natural selection. I had to close my own studio, just like many other founders. The supply-demand balance is off – there’s too much supply, making demand more selective. If supply decreases, demand will have fewer choices. Every industry has its ups and downs, and crises always bring opportunities.
However, not everyone can survive these crises.
Those who do share a common trait: they understand business deeply. Making games is a production job, but business is the skill of converting any asset into money. So, be wild and seize every opportunity that can bring $$$ to your business. Here’s a revenue diversification cheatsheet I recently shared on LinkedIn:
Your primary and biggest source of income must be the game itself because, mathematically, if you’re making more money from something else, you’re not a game studio anymore 🙂
Revenue diversification can save you in tough times. When your game’s revenue drops, it will prevent your studio from going into a financial crisis. It’s not wise to put all your eggs in one basket, right?
