Inflation, Ads, and Webstores Change Everything We Know

Inflation, ads, and webstores reverse nearly every trend in gaming—and then reverse it again. These aren't rounding errors either—they're GDP-level phenomena (literally), and the inability to account for them is warping our perception of reality in the gaming industry.- Adjusting for inflation completely reverses the growth in mobile spending between 2020 and 2023, from +8% to -9%.- Adjusting for inflation slashes Newzoo's 2026 PC & Console forecast by 39%, from +15% to +9%.- Ads revenue is likely a double-digit percentage of gaming revenue, and all we have to estimate is King's quarterly earnings.- Adjusting for webstores completely reverses the revenue decline in some midcore genres, casting cold water on the "move to the middle" thesis.

Phillip Black April 1

Journal

What causes the gaming industry layoffs?

What causes the gaming industry layoffs? Part 2 - "Interlude - The Ebbs and Flows of a Game Project." Thank you John Wright for giving me the idea of making this a series rather than one giant post.And thank you Carlos Salvado 🔜 GDC for having me go deeper on this.Part 1 in the comments.So we realized it isn't AI - because it's just a tool, just like Photoshop was a tool.We need people to use the tools.Do some people quit or get fired for not adapting?Sure, I've actually heard stories already.But it's a handful of people in comparison with the thousands laid off.I talked about R&D, new games, being essential to gain sustainability as a business. But why? What happens in the standard cycle of a game studio?A game and it's ideas, most of the times, come from previous […]

Gus Viegas March 29

Journal

Hexa Sort: The Appeal of Innovative Sort Mechanic

Amidst the recent surge of puzzle games, Hexa Sort by Lion Studio Plus presents a distinctive approach. Implementing a sorting mechanic, players are tasked with arranging hexagons of the same color to eliminate them, making room for subsequent piles. Hexa Sort adds to the array of puzzle games offered by the international publisher Applovin. Core Game Loop The gameplay of Hexa Sort is easily grasped from the outset. Players are tasked with sorting 10 hexagons of the same color to clear the stage and earn as many Stars as possible to progress through the levels. The choice of hexagonal shapes is particularly clever, as the polygon's high sides can introduce challenges along the way. In games with straightforward mechanics like this, the level design becomes the most intriguing aspect. To challenge players, blocking off certain areas and diversifying the colors […]

Guy Yogev March 26

Events

Hamburg Games Conference

5-6 March 2024! The annual Hamburg Games Conference has been a permanent date in the calendar of the international games industry for over 14 years. With a strong focus on C-Level Business and Investment, HGC offers a 2 Day onsite conference, with more than 30+ editorial talks, an expo, evening events, and matchmaking in 2024.

Gamigion March 25

Journal

Mobile Gaming in India

India is a country with strong potential for growth in the coming years, particularly within the mobile sector. This includes mobile gaming, non-gaming apps, and the overall mobile industry. I got a lot of questions about data for this country. Since a lot of data points about mobile technology, gaming, and apps are scattered across various sources, I decided to compile them (similar to how I approached the gaming, iOS, and Africa data in previous posts). It starts with more general data and then it gets more and more detailed.- general data about India- growth of internet and mobile connections- detailed data about gaming and mobile gaming in India- detailed information about apps in India

Mariusz Gąsiewski March 25

Journal

Wrapping Up Think Games by Google

It's time to wrap up ThinkGames (by Deconstructor of Fun and Google) and share some notes and highlights: • Last year's predictions about layoffs and vc winter came true, with fewer investments and smaller checks observed for new titles.• Market consolidation is strengthening, with the top 5 games in each category claiming a larger piece of the revenue cake.• Most revenue comes from titles that have been on the market for over 5 years. Launching new successful titles is increasingly challenging, though not impossible as seen with Monopoly GO.• The gaming market has matured, requiring developers to navigate it more deliberately (vs lean).• 𝗠𝗮𝘀𝘁𝗲𝗿𝗶𝗻𝗴 𝗟𝗶𝘃𝗲𝗢𝗽𝘀 𝗶𝘀 𝗰𝗿𝘂𝗰𝗶𝗮𝗹 𝗳𝗼𝗿 𝘀𝘂𝗿𝘃𝗶𝘃𝗶𝗻𝗴 𝘁𝗵𝗲 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗰𝗼𝘃𝗲𝗿𝗶𝗻𝗴 𝗵𝗶𝗴𝗵 𝗖𝗣𝗜 𝗰𝗼𝘀𝘁𝘀.• In general, games are recovering slower than apps from the post-Covid IAP decline.However, there is always space for a silver lining and promising trends:✨ Hybrid games are […]

Julia Iljuk March 25

Journal

Power of Positive Networks in Gaming

While the game industry is having turbulent times, recently I got happy after seeing one person from my network, who's been searching for a job for a long time, getting hired! 💪👍 The specific reason I'm happy for this person is that I had given some career tips for career development, portfolio and such, which apparently did pay out well (at least a bit) in terms of getting hired. Feels really good during these turbulent times, and I'm really proud of this person finally making it! 🎓👌In terms of jobs market in games, when looking further, what is amazing is how some people in this industry can effect positively so much to people's careers and the opportunities they get. 🤝When I look towards some persons' profiles, who I've had the pleasure to work with (including also hiring them in most […]

Antti Kananen March 21

Journal

Gaming’s Best Days Are Behind It

Matthew Ball's excellent piece, The Tremendous Yet Troubled State of Gaming in 2024, unpacks a paradox: gaming seems prosperous yet is marred by unprecedented industry layoffs. Ball's findings reveal a simple reality: playtime is down over 20% (3.5 hours per week) from its COVID peak. This decline, further seen in declining inflation-adjusted spending, cements gaming as an entertainment product with a capped growth potential. Without new strategies to reclaim timeshare, gaming's best days are behind it.Despite COVID hangovers, Ball remains optimistic about gaming's prospects, citing opportunities in streaming, in-game advertising, and transmedia. The mid-00s breakthrough of OnLive, Burnout Paradise, and Uwe Boll wasn't enough. But other growth suggestions include "'UGC platform developers' (i.e. Roblox developers) shifting to standalone titles." This resulted in Steam's top-charter, Lethal Company, the product of a former 21-year-old Roblox developer. UGC needs to play a central […]

Phillip Black March 20

Events

MWC Barcelona

3-6 March 2025Fira Gran Via, Barcelona Join MWC Barcelona, the largest and most influential connectivity event in the world, hosted by GSMA in Barcelona, Spain, 2024.

Gamigion March 20

Journal

Little observation about the gaming startup market.

I have a little observation about the gaming startup market. In 2018, I was working for a public gaming company, and we were considering investing in the newly formed gaming VC fund (now one of the best on the market). They pitched that they see about 100 gaming investment opportunities a year. We had a similar deal flow, and I suppose it was the best you could get back then. >> Fast forward to the present moment. In 2023 alone, TGF received over 3000 applications, and I believe it is about the best you can get now. x30 growth in deal flow in 5 years.

Ilia Eremeev March 18

Journal

GameDev is Not That Sweet

GameDev is Not That Sweet 🍭 This and more ideas came to me after reading Significant Zero: Heroes, Villains, and the Fight for Art and Soul in Video Games by Walt Williams.Book with ****ing strong language (since industry may be harsh) is written in such a way that when you read it you feel like you’re sitting in a bar with your buddy. After reading about the creation of BioShock, Mafia II, and Spec Ops: The Line, etc, I got a desire to replay them.📕 My favorite ideas from the book:- Our main value is not in ideas but in the ability to implement them.- No matter what industry you work in, never turn down a free T-shirt.- Game development is not a nursery.Thanks, Daniil Varshaver for giving me this book and signing it. Sounds like an interesting tradition, exchanging […]

Eva Piatrushina March 18

Highlights

LinkedIn Ventures into Gaming: Introducing Puzzle Fun

Wow, wow, wow! Looks like LinkedIn wants to crash the gaming party already! Time to roll out the red carpet, or? LinkedIn, our networking giant, is leveling up! Time for brainy fun with puzzles like "Queens" and "Crossclimb" coming your way. Who said networking couldn't be a game? Seems like we're in the "wait and see" zone. No launch date yet, but they're prepping for quick, fun gaming sessions. Tech giants diving into gaming show how games rule both business and culture, aiming to keep us entertained for the long haul. Enhancing User Engagement With a user base of over 1 billion individuals, LinkedIn recognizes the potential of integrating games to captivate its audience further. By introducing casual gaming experiences, the platform aims to offer users a refreshing break from their professional endeavors while fostering deeper connections and sparking conversations […]

Gamigion March 18

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