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Create free accounthello and welcome to Biz daily I'm John Jordan so the news we're talking about today is that Undead Labs which is a seattle-based uh game developer has announced that it's not going to release its game moonrise so that might seem kind of a little bit odd it's a game that's not been um globally released yet and it's now now never going to come out it kind of seems kind of wow so what's the news there but this kind of interesting um in terms of how games are made now particularly mobile games so kind of to kind of um kind of give some background on moonrise so moonrise is a a kind of kind of um a creature based RPG I mean broadly um inspired a bit by Pokemon um but but you know very broadly um and it's been in development um and
been in soft launch for quite a long time now so it's been on PC it's been on Steam Early Access and it's been on iOS in in uh Australia and Canada um for about eight months now so as we all know now kind of soft launches is a big thing that that game developers do they kind of get their game to a certain stage of development and then they go right we're going to put out in some territories and just kind of get some feedback um and some of that feedback is is kind of overt feedback from from players and some of it is kind of um just looking at the numbers looking at the data looking at how many people download the game then how many people from The Who download the game go on and play it for one day um 7 days 30 days that's the standard um and then maybe look at a bit of monetization as well um but um normally you know ging soft launch for maybe you know certainly a month maybe two 3 months you know uh moon rise has been in soft launch for you know a number of months you know more getting on for um you know cly over half a year getting on for a year really um and that's always kind of a bad sign really that's always a sign that the developer hasn't found the numbers as they want
them they can't tweak them easily into the numbers that they want them to be so they're having to do some quite kind of severe um Redevelopment and kind of re it's kind of more than tweaking at that that stage um so we've been looking at moonrise it's you know certainly an ambitious game it wasn't it's not a easily um pigeon hold kind of game um and it was from a a new so Undead labs are a fairly new kind of developer certainly haven't done a lot of free to-play games before this is their first big free-to-play mobile game um but also it's was being um published by would or would have been published by Kabam so Kabam obviously fairly well known very big American publisher or American Chinese publisher depending on how you want to see them um but over the over kind of historically Kabam has has been moving much much more towards um branded content so it's big game at the moment is Marvel um content content contest of Champions it's been a very successful game for them they fast this game to $100 million of Revenue um and it's moving away from from original Ip and that's obviously moonrise is original Ip
is how games used to be made certainly 10 years ago you came up with a cool idea and characters made made a game a success and then the sequels um we've kind of moved away from that a little bit certainly mobile Brands and celebrities and that's become a lot more important but kind of what's interesting with moonrise is that the developer Undead lebs the CEO um Jeff strain's gone um publicly online and and said you know we some people really love this game we can see that from the from the metrics but most people kind of kind of like downloaded it um in soft launch characters play it for a little bit and then come said you know not really for us and then left and so because it's a game and lot a lot of games now games as a service they require High um infrastructure costs a lot of kind of server bandwidth um they acquire a live team so once the game goes live you move from a development team to a live team they're running events they're running kind of um marketing they're running in-game um retailing um you know that's fairly expensive that's that's like just a cost you have to have to kind of Run Run the game and then you have the development team doing new content and update and new things they've basically
realized that they can't make this game profitable and look read between the lines probably Kabam have said you know we we're moving away from from from this original Ip thing into branded IP that's where we think we can make our big money and Kabam is certainly all about make making very profitable big money games um but the really kind of interesting story is this game moonrise will never come out now apart from if you're in Canada or Australia or quickly get it on Steam um the servers aren't going to be shut down till the 31st of December so it's got kind of 4 months to go before it's kind of shut down totally and actually what Undead labs are now saying is they're going to kind of really play around they're say they going to open the floodgates where in our headline haha said we're going to open the fun Gates um and they've really changed the Ina economy so obviously freeto playay games are to a degree controlled by kind of timed Gates so this you can't get the content um straight away you have to kind of grind some of it out or you pay to get it quicker um what they're basically saying it was we're going to experiment so everyone who's playing that game moment has been given a lot more resources um the the um progression
is going to happen in time wise much quicker people going to have just much more you know much more open experience than they would otherwise had and probably what we're going to find is Undead labs are going to get some really good data about what happens when you really um loosen the economic strings in a free-to-play game and that's going to be super interesting I think for them whether how whether they make that public or not I don't know I assume not because that's going to be really valuable it's very rare that a company has the chance to have a game with a lot of people in that they just go this game's never going to come out we don't care about profitability but we're just going to experiment and and let people play the game in a very different way because OB we' see in freet to playay games there's a lot of people you know there's a lots of tweaking you know it's definitely tweaking monetization so it can we get 10% more monetization which is a big deal for a lot of games um but with what Undead Labs again are doing they're effectively kind of moving the lever massively they're not doing looking for 10% they're looking for they tweaking at 100% you're getting a lot more Revenue kind of resources in the game if you're a player and that'll be very interesting to see that maybe we'll see as a result of that kind of a and it's something Kama have been looking at
themselves they were notoriously um kind of tight on their monetization because they wanted to make money and then they a year ago they took a step back and said we're going to make it easier we're going to be easier on our monetization because we were looking for retention and often when you talk to people who do monetization they talk about we don't monetization is secondary to retention if you can't retain players then you can't monetize them at any point and that's really what Undead labs are saying is when they look at their data they can't retain their players um over that first kind of 1 day 7day 30-day period um is obviously the longer people if you can keep people in a game for a couple of months still the majority of them won't pay anything at all but they they're very valuable users players that level and at some point you know you might be able to monetize them or if they're still playing and you over a couple month period and you're putting advertising in there that their value is generated by the advertising they'll see so it's kind of very interesting um this kind of whole kind of monetization retention thing um so yeah kind of a really a really it's very nice I think from a journalistic point of view to see a developer being very open with with it
with its user base with its player base and saying this game is not going to come out in the commercial level in which we wanted it to come out we're going to be nice we're going to kind of give you a whole bunch of stuff um enjoy the game um and hopefully we'll learn something and we can take that on to to our next games so I guess if you're in Australia or Canada kind of check out um um moonrise um while it's still available and the rest of us we would have to wait and see what Undead Undead Labs get up to um next it certainly be fascinating um come back tomorrow and we'll see what the news is then see you then
The cancellation of the creature-based RPG Moonrise by Seattle-based developer Undead Labs highlights the challenges of the modern mobile games-as-a-service model. Despite an extended soft launch period of nearly eight months on Steam Early Access and in the Australian and Canadian iOS markets, the developer failed to achieve the necessary retention and monetization metrics required for a global release. The decision to terminate the project reflects a broader industry shift, particularly by publisher Kabam, away from original intellectual property in favor of high-revenue branded content, such as Marvel-themed titles.
The primary obstacle for Moonrise was an inability to maintain player engagement across critical 1-day, 7-day, and 30-day retention benchmarks. Because live-service games require significant ongoing infrastructure costs and dedicated teams for content updates and event management, the inability to convert the player base into a profitable audience rendered the project unsustainable. Undead Labs concluded that the game could not be effectively tweaked to meet commercial viability standards.
In a unique final phase, Undead Labs opted to keep the servers active until December 31, 2015, while drastically loosening the game’s economic constraints. By providing players with increased resources and accelerated progression, the studio intends to gather rare data on how a free-to-play economy functions when traditional monetization gates are removed. This experiment serves as a strategic learning opportunity, prioritizing the collection of behavioral data over immediate profitability. Ultimately, the case underscores the industry's growing consensus that long-term player retention is the fundamental prerequisite for successful monetization in the mobile sector.
Nippon Ichi Software
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