2015
Company
Documents about 2015
Will Nintendo be successful making mobile games?
Nintendo’s March 2015 decision to enter the mobile gaming market through a partnership with DeNA marks a significant strategic shift for the company.
- In March 2015, Nintendo shifted its long-standing policy of exclusive hardware development to enter the mobile gaming market through a strategic partnership with DeNA.
- The move was prompted by the declining performance of the Wii U and 3DS consoles, which led to Nintendo’s first period of financial losses in decades.
- Nintendo aims to leverage its iconic intellectual property, such as Mario, Donkey Kong, and Pokémon, to reverse its financial trajectory on smart devices.
Ramblings on the Apple Watch
The March 2015 announcement of the Apple Watch marked a significant shift in Apple’s product launch strategy, emphasizing a personalized, high-touch consumer experience over the traditional rollout models used for the iPhone and iPad.
- Apple shifted its launch strategy for the March 2015 Apple Watch by prioritizing a high-touch, personalized retail experience with specialized in-store displays rather than the traditional rollout models used for the iPhone and iPad.
- Market analysts provide a wide range of first-year sales projections for the Apple Watch, spanning from a conservative 5–10 million units to an aggressive 40 million units based on a potential 10% adoption rate among the 400–450 million active iPhone users.
- The Apple Watch is positioned across a broad price spectrum, ranging from a $350 entry-level aluminum model to a luxury gold edition priced between $10,000 and $17,000.
Some trends from GDC 2015
The 2015 Game Developers Conference (GDC) in San Francisco served as a primary venue for major engine providers to refine their market strategies and for industry leaders to re-evaluate player engagement terminology.
- Epic Games transitioned Unreal Engine 4 to a free-to-access model, shifting its monetization to a 5% royalty fee on live product revenue.
- Unity Technologies introduced a tiered pricing structure, offering a free Personal Edition alongside a professional subscription service priced at $75 per seat per month.
- Major engine providers are aggressively targeting mobile developers by lowering barriers to entry and increasing the accessibility of high-performance development tools.
Top 50 Developers of 2015: #1 Supercell
Supercell secures the top position in the 2015 list of mobile developers, marking a return to the number one spot it previously held in 2013.
- Supercell reclaimed the number one spot in the 2015 mobile developer rankings, driven by the sustained financial performance of its core portfolio.
- Clash of Clans remains the studio's primary revenue driver, generating an estimated $1.8 billion in 2014.
- The company successfully expanded its market reach with Boom Beach by positioning it as a less competitive companion to Clash of Clans, avoiding user base cannibalization.
Gdc 2015 show floor with Ctrl.alt.gdc and Tim Schafer and a one life left
The 2015 Game Developers Conference (GDC) floor serves as a primary hub for showcasing experimental hardware and unconventional interactive experiences.
- The 2015 GDC expo floor demonstrated a significant industry shift toward experimental, physical, and tactile gameplay mechanics that bypass traditional controller-based inputs.
- Innovative hardware prototypes showcased at the event included a mechanical, dial-operated tank simulation and 'Line Wobbler,' which utilizes a bungee cord interface for movement and combat.
- The conference serves as a critical networking bridge, facilitating direct interaction between emerging graduate students and industry veterans such as Ron Gilbert.
2015 game user research summit
Game user research functions as a specialized discipline rooted in rigorous scientific methodology, primarily drawing from the fields of cognitive psychology, statistics, and data science.
- Game user research relies on rigorous scientific methodology, integrating principles from cognitive psychology, statistics, and data science to drive objective development decisions.
- Testing environments must be designed to mimic real-world conditions, such as domestic living rooms, to ensure that data accurately reflects how players interact with hardware and software.
- When testing with children, researchers must mitigate groupthink and peer-influence bias by separating participants or using structured, independent questioning techniques.
Tencent buys Miniclip and Sega invests in Space Ape
The gaming industry in early 2015 is characterized by a surge in mergers and acquisitions, as highly profitable companies leverage their cash reserves to secure strategic assets.
- Tencent acquired a significant majority stake in Miniclip to leverage shared expertise in transitioning web-based portals to mobile free-to-play ecosystems.
- Sega Networks expanded its mobile footprint by acquiring Demiurge Studios and investing in Reignited Artists and London-based Space Ape Games to facilitate entry into the Japanese market.
- Playtech acquired YoYo Games for $16.4 million to integrate the Game Maker software into its gambling-focused business model.
Were Super Bowl ads worth it, and Glu's Katy Perry lift
The mobile gaming industry is currently undergoing a strategic shift toward high-profile brand advertising, exemplified by the significant investments made during the 2015 Super Bowl.
- Mobile gaming companies, including Supercell and Machine Zone, spent approximately $15 million on 2015 Super Bowl television spots to shift from performance-based digital marketing toward high-visibility brand advertising.
- Glu Mobile’s stock price increased by 30 percent in a single day following the announcement of a five-year partnership with Katy Perry, building on the success of their celebrity-driven simulation model.
- The mobile gaming market is characterized by a 'winner-takes-all' dynamic where a single breakout hit, such as Kim Kardashian: Hollywood, can stabilize a company's finances after years of losses.
Why Kabam is toning down its F2P monetisation
The mobile gaming industry is currently navigating a shift toward long-term player retention and sustainable monetization strategies, as evidenced by the financial performance and strategic pivots of major players like Electronic Arts and Kabam.
- Kabam shifted its strategy from aggressive, short-term monetization to a 'less is more' approach after missing its 2014 revenue target of $550–600 million, reporting only $400 million.
- To improve long-term lifetime value, Kabam is reducing its game release frequency and easing monetization mechanics, such as gifting players small amounts of hard currency to foster better sentiment.
- Mobile game developers are increasingly utilizing 'extreme user acquisition,' evidenced by companies like Supercell and uCool investing millions in high-profile traditional media, including Super Bowl advertising.
10 key trends shaking up the mobile games market in 2015
The mobile gaming industry in 2015 is defined by a complex interplay between established market dominance and emerging creative shifts.
- High user acquisition costs have created a significant barrier to entry, allowing well-funded companies like Supercell and King to dominate top-grossing charts through massive advertising and television campaigns.
- Smaller developers are increasingly pivoting toward paid game models to avoid the resource-heavy update requirements of the games-as-a-service model.
- Free-to-play developers face mounting pressure from international regulators regarding aggressive monetization practices and the protection of minors.
Big numbers from Monument Valley, Crossy Road and Minecraft
The mobile gaming industry began 2015 with a focus on monetization strategies, highlighted by performance data from three prominent titles: Minecraft, Crossy Road, and Monument Valley.
- Monument Valley generated $5.8 million in net earnings against $1.4 million in development costs, resulting in a $4.5 million profit from 2.4 million sales.
- Crossy Road’s two-person development team earned $1 million in revenue by utilizing Unity Ads, demonstrating the financial viability of non-intrusive, incentivized video advertising.
- Minecraft maintains its status as a premium mobile outlier, having reached a total of 30 million downloads.
Finland's one bright spark, Kamcord's $15M and CCGs in China.
The mobile gaming industry experienced a period of strategic consolidation and investment toward the end of 2014, characterized by significant funding rounds and shifting market dynamics in key global regions.
- The Chinese mobile gaming market is projected to reach $6 billion in revenue by 2015, positioning it to become the world's largest mobile gaming sector.
- Kamcord secured $15 million in funding, led by GungHo Online Entertainment, to advance mobile gameplay recording and social sharing tools.
- Collectable card games (CCGs) currently dominate the Chinese market, accounting for approximately one-third of total mobile gaming revenue.