The Comeback

Key insights

6 takeaways

01
Live-service games are currently failing to address the 'lapsed player' demographic, focusing almost exclusively on user acquisition for new players and retention for existing ones.
02
Implementing 'reboarding' strategies—designed to help returning players quickly understand new story arcs, currencies, and gameplay systems—could be as effective as traditional marketing campaigns for long-term game health.
03
As live-service games age, the cost of user acquisition rises, forcing developers to rely on expensive, high-reach advertising like Super Bowl spots or platform-specific deals to maintain growth.
04
Saudi Arabia’s Public Investment Fund has acquired a $1 billion stake in Embracer Group, continuing the trend of significant sovereign wealth investment in the gaming industry.
05
Epic Games Store is moving toward hosting NFT-based titles like 'Grit,' creating a conflict for CEO Tim Sweeney, who maintains an 'open platform' policy while simultaneously pursuing legal action against crypto-scams using his company's intellectual property.
06
The ESA has officially pledged to return with an in-person and online E3 event in 2023, though the industry's long-term reliance on the show remains uncertain following multiple years of absence.

Summary

The live-service gaming industry faces a significant strategic oversight by focusing almost exclusively on user acquisition and the retention of highly engaged players. While developers prioritize these two groups to maintain revenue and satisfy the most vocal segments of their community, they frequently neglect a third, potentially valuable demographic: the lapsed player. These individuals, who previously invested time and money into a title but have since drifted away, represent a more accessible target for re-engagement than entirely new users, yet current industry practices offer little support for their return.

Returning to a mature live-service game often proves overwhelming due to the accumulation of new currencies, complex gameplay systems, and evolving narrative threads. As games age, the barrier to entry for former players rises, creating a sense of alienation rather than nostalgia. While developers have mastered onboarding for new users, they lack a structured approach to what could be termed reboarding. Implementing systems to help returning players quickly synthesize new content and catch up on progress could serve as a powerful alternative to the increasingly expensive and difficult task of acquiring new users.

The current landscape of user acquisition is particularly challenging for console and PC titles, which lack the straightforward advertising pathways available to mobile games. As the cost of finding new players continues to climb, the industry’s reliance on existing, highly engaged users creates a cycle of diminishing returns. By failing to design experiences that welcome back those who have already demonstrated an affinity for the product, developers are missing a logical opportunity to stabilize their player bases. The first studio to successfully bridge this gap and facilitate a seamless return for lapsed players may fundamentally alter the long-term sustainability of the live-service model.