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How IAPs Fuel Player Retention and Growth in F2P Games

Consider an experiment on a given game; IAP is turned on in one version, and in another, IAP is turned off. After one year, which version has more players? It's the one with IAPs on! Monetization increases engagement; far from a tax, it's a subsidy.In a rush to emphasize the unique low conversion and hyper-skewed nature of F2P, evidence rarely is presented as a time series. We often lament that "less than 1% of players pay!" but this isn't true on a time series basis. The retention rates of players who choose to pay are significantly different from those who do not. Over time, the share of DAU that's made at least one payment rises; it's also why we see ARPDAU rise. With enough time, payers outnumber nonpayers. Top games like Galaxy of Heroes or Summoner's War likely maintain 60-80% […]

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How to analyze your Monetization Metrics?

How to analyze your Monetization Metrics? 📊Similar to acquisition, engagement, and retention, monetization performances can be analyzed through cohort views.By doing so, you can see how changes in your pricing or product affect your revenue over time.Analyzing cohorts for monetization would represent groups of users who made their first payment in the same period.Customers with different characteristics (like how they were acquired, user behavior, and location) may have various monetization performances. This can help you understand which types of customers are the most valuable and tailor your monetization strategies accordingly.🔔 But remember: no single metric tells the whole story. In Growth, metrics are interconnected.The most meaningful insights often come from understanding how different metrics relate.A great acquisition is not meaningful if most users churn quickly.Retention will not power revenue if you don’t acquire users.It’s the sum of each metric and their relations […]

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My Perfect Hotel: $3M IAP & $4M IAA in Last-30

Interesting to see another monster hit come out of SayGames! My Perfect Hotel in the last 30 days has made $3 million in IAP revenue and we estimate another $4 million in ad revenue. The game was in soft launch for over a year but recently clocked in 18 million downloads in the last month! It's safe to say that SayGames is building a Habby style of game framework for the Idle Arcade genera.. and wow is it working!Comparing My Perfect Hotel with DreamDale you can see many similarities in how SayGames’s hybrid casual framework is starting to evolve. From an ads perspective, they monetize with Banners after 20 min of gameplay that is on a 15-second refresh rate. Compared to 10 seconds on hyper-casual titles. Interstitial ads are delivered with increasing frequency based on how far through the game a […]

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The mobile games investment landscape is currently bleak.

Let's face the fact: The mobile games investment landscape is currently bleak. If you're currently seeking investment exclusively for mobile games, you're in for the hardest time of your life. Investors and venture capitalists (VCs) are not prioritizing mobile games given the current landscape.Why? Because of:1. The overall economic situation: There are widespread layoffs and increasing costs of living. Everyone is scrutinizing their spending habits more closely.2. Post-IDFA (Identifier for Advertisers) challenges: High Cost Per Install (CPI) rates and related issues have arisen after the implementation of IDFA changes. The impact of IDFA changes is widely recognized. Optimizing games and user acquisition (UA) for the ideal audience no longer has shortcuts as it used to. Games need to be developed, operated, and scaled with new approaches and models. Until these models become more widely accepted and reliable, investors are skeptical […]

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Chinese Games Have Gone Global

Chinese games have gone global. This week’s launch of Honkai: Star Rail and Starlight 84 marks China’s emergence as a AAA developer for Western audiences. In the past, top Chinese games such as Honor of Kings, Fantasy Westward Journey, and QQ Speed struggled to meet Western expectations or compete with their Western counterparts. As with our usual economic growth story, manufacturing and outsourcing accumulates valuable human capital and spur agglomeration effects, letting developers move up the supply chain. Original IP development sits atop that chain. The adoption of mobile gaming and sophisticated virtual “dual stick” controls in the West has aided Chinese success. GenZ is being raised on dual-stick Roblox mobile, and Call of Duty Mobile’s dual-stick success was a revelation. The explosion of anime in the West hasn’t hurt, either. Driven by platforms like Netflix and Crunchyroll, the growing […]

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Supply-chain economics is as much a game design responsibility as it is production.

Core design influences the production gap between Blizzard's Overwatch heroes and, say, Ubisoft's Rainbow Six Siege (R6:Siege) Operators. Ubisoft has shipped an average of .51 new Operators per month since launch compared to Blizzard's .21 new heroes, more than double the pace. Blizzard will pack far more lore, cosmetics, and unique gameplay into each hero at the time of release - it's part of the Blizzard "quality bar," but maybe heroes should release faster and with fewer "features." In faster character designs, weapons are sometimes disintermediated from character units - Apex and Valorent release weapons separately. Part of player empathy is servicing players' content needs, with many legacy AAA studios refusing to tackle the challenge. But it's at their peril; players ultimately choose the optimal mix of quality and quantity, not design directors. Liveops' responsibility is to reduce the constraint […]

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Supercell To Superscale

The world’s least powerful CEO won’t lead Supercell’s next chapter. Supercell is superscaling, and with it comes bureaucratization and hierarchy. CEO Ilkka Paananen believes investing in their proprietary game engine is crucial for the company's future. One way to scale is by increasing each developer’s productivity. The engine functions like a platform with “out-of-the-box” tools to avoid re-building the wheel for every title. The challenge, however, is that each game and genre has its own “wheel.” Supercell's most ambitious project, Clash Heroes, opted for Unreal instead of the in-house engine, raising concerns about its effectiveness. The economics of proprietary engines haven’t worked. Engine development is expensive, with costs amortized over customers. The fewer the customers, the more expensive the development. This worsens when combined with new studio locations and remote work. EA’s Frostbite isn’t exactly setting the industry ablaze, and […]

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How to Stay Profitable In A Post-Privacy World

Success in a post-privacy world is highly unpredictable. To make matters worse, the headwinds facing the global App Economy have reached gale-force speeds, turning up the pressure on marketers to conserve cash, not burn it on UA. And finally, the marketplace has become a monstrously large and massively noisy space where apps compete for audience attention. This is where a strong brand pays dividends. "Unless you've built a brand, the user journey to conversion typically remains longer due to a lack of top-of-the-mind awareness," Piyush Mishra, Head of Growth Marketing at Product Madness, Mishra told me during a recent podcast interview. Short user attention spans and limited budgets represent dangerous disconnect marketers can only bridge with a strong brand. From data-driven user acquisition (UA) marketers to performance marketing pros and from lifecycle experts to retention specialists, I have interviewed hundreds […]

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Finding the next best performing Ad

💡 Picture this You scroll your feed, you see an ad from a competitor app, and you have the urge to share it with your colleagues on Slack. This is the life for the majority of people. It happens to everybody (including past me), and it is okay that you leave this habit after reading this post. Samet, you are being too harsh. This is not my intention. But here is the thing: If that ad you shared didn't get thousands of likes or millions of views, you are distracting everyone. But Samet, how do I inspire people to create more ads? The real question is *not* creating more ads (tho, definitely better than not creating anything). The question is: Where can I find the ad that the competitor is spending tons of 💰? ---- Btw, if you are new […]

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GDC: AI, Storytelling, and Surface Economy

You never forget your first time - and that goes double for me when I look back at my first Game Developers Conference GDC. And what a year to join the party! It was much more than a must-attend gaming developer meetup and happening. To borrow a few words from my favorite (and practical!) visionary Frans Johansson, GDC marked a tipping point in “The Great Recombination” era. It’s an exciting space where creativity explodes (and has far greater importance) because the cost and ease of access to platforms, products and services are dropping at stunning speed. As Frans puts it: “Because technical expertise matters less and less — creativity will mean far more.” Nowhere is the impact more profound than in gaming. Games industry veteran and innovator Chris Heatherly captures the zeitgeist in a post-GDC LinkedIn post. “The game-as-app era […]

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Dreams in the Witch House

Here’s a brief review of an interesting retro-style point-and-click adventure game that just released a few days ago on Steam [LINK] and I’ve found enjoyable, although perhaps not flawless. At first glance, one could just think this is just another point-and-click game, with the only particularity of being based on the Cthulhu Mythos. But there’s a bit more than that. On top of the classic mechanics of the genre, Dreams in the Witch House has an interesting twist by adding survival/RPG mechanics to the formula.On top of solving the puzzles, the player has to deal with the main character's needs like in The Sims: having to get food, obtain wood to keep his room warm, get clothing (based on the weather), and take proper rest to avoid handicaps and even death.And like in Bully or the Persona series, the player has to study different subjects and pass exams to continue being a […]

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Is Your Ad An Attention Magnet?

Marketing teams are combining talent and tools to produce campaign creatives that are memorable and hit the metrics. It’s an arms race to develop compelling and engaging ads, and it’s an idea that is spreading like wildfire as companies realize ad creatives are the source of their competitive advantage. But are they? My interview with attention measurement pioneer and thought leader Dr. Karen Nelson-Field PhD flies in the face of everything I have heard over the past months about the power of the ad creative. The research she has produced with her team at Amplified Intelligence, where she is the founder and CEO, shows that ad creative is actually near the bottom of the hierarchy of factors that influence audience and outcomes. Image courtesy of Amplified Intelligence It comes as no surprise that marketers also need to nail audience context […]

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