Game development is a complex and intricate process, demanding expertise in programming, design, sound engineering, and user experience optimisation. Developers must overcome challenges such as device compatibility, varying screen sizes, and diverse operating systems. In the realm of mobile game development, a recent investigation by SuperScale unveils a stark truth. The findings reveal that 83% of released games cease to exist within three years. What’s even more disconcerting is that 43% of games meet their end during the development phase, never reaching the launch stage. This paints a vivid picture of the prevalent challenges in today’s mobile game development landscape.
Numbers Reveal the Harsh Truths
Creative market research firm Atomik Research conducted a survey for SuperScale – a survey towards 500 developers in the U.S. and UK, revealing concerning trends in the mobile gaming industry. According to the Good Games Don’t Die report, 83% of mobile games fail within three years of launch, with 43% being cancelled during development. While 76% of games peak in revenue within the first year, only 4% achieve the same in the second year.
The report attributes this to fickle casual users and a lack of commitment to a proper “Live” gaming service approach. Although over half of the developers incorporate live services, 38% don’t release regular content or updates. Less than half provide monthly updates, and only 5% offer extended support seven years after launch.
Discovery From SuperScale
Amid the prevalent high failure rate in mobile gaming, the SuperScale white paper delves into the unexplored possibilities within ‘Good games’ that have either faltered in development or post-launch. These ‘Legacy games’ are those no longer receiving consistent user acquisition investments or live-operation updates, or that exhibit declining revenue. The study indicates that an average mobile gaming portfolio includes 18 legacy games, suggesting significant untapped commercial potential for developers and publishers. Spanning 18 pages, the Good Games Don’t Die white paper reveals prevailing trends in areas like outsourcing, performance assessment, and monetisation strategies, offering insights into unlocking the latent potential of these ‘Died’ but potentially valuable games.
The strategic focus on monetising mobile games is evident, with 62% of developers integrating LiveOps into their most profitable titles. Additionally, 37% of studios actively update their top-performing games weekly, while fewer than half opt for monthly updates.
The Impact
The high failure rate of new gaming projects hasn’t deterred 78% of developers from expressing a preference for working on fresh endeavours. A significant portion, over a third, cites “Uncertainty in the industry” as a hindrance to creating new mobile gaming experiences, while 30% perceive the current market as too challenging for reasonable success. The report also notes that two-thirds of mobile studios have recently faced layoffs, downsizing, or budget cuts, with 29% reducing their User Acquisition (UA) budget. SuperScale CEO and founder Ivan Trancik highlights the volatile nature of the game industry, leading to increasingly negative outcomes for mobile-focused ventures.
In the challenging landscape of today, numerous mobile developers struggle to sustain profitability due to factors like Apple’s App Tracking Transparency, intense competition in a mature market, and macroeconomic challenges such as high inflation. According to Trancik, the Good Games Don’t Die whitepaper should be a wake-up call for the industry, providing actionable data and serving as a source of inspiration for developers and publishers alike to optimise revenue for games, whether new or old.
Some Thoughts
The data and discussions provided by SuperScale underscore the palpable tension between passion and profit in game development. The findings reveal significant financial risks that can profoundly impact the outcomes of mobile games, influencing their performance for the audience. Despite the strategic approaches game developers may employ, there exist uncontrollable factors that pose inherent risks to game development. This highlights the unpredictable nature of success in the gaming industry, emphasising that, in addition to dedicated efforts, a degree of luck may also play a crucial role in achieving success.
What Are Required for a Successful Game Development?
Successfully developing a game development business in a challenging environment requires a multifaceted approach. Begin with thorough market research to identify trends and gaps, then diversify your portfolio across platforms and genres. Implement effective monetisation strategies such as in-app purchases or ads, and actively engage with your community for valuable feedback. Adopt an agile development approach to quickly adapt to market changes and prioritise cost management. Stay informed about industry shifts, network with industry professionals, and invest in marketing for increased visibility. Focus on delivering high-quality games, seek funding opportunities, and build a resilient team capable of navigating uncertainties. Embrace a holistic strategy that encompasses market awareness, adaptability, and player satisfaction to maximise success in the competitive gaming landscape.
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A Short Closing
Despite the potential and inherent risks, game developers should not be discouraged from creating new games, given the continuous demand in the market. While the challenges are substantial, a comprehensive and well-structured plan can mitigate risks, providing game developers with a more secure path to profit. Importantly, such an approach allows developers to uphold the gaming spirit and effectively reach their audience.