Market Analysis reports and market data
Documents
DeNA, Samsung and Disney keynote Pocket Gamer Connects San Francisco 2015
The mobile gaming industry is currently undergoing a strategic shift toward high-value intellectual property, curated distribution, and long-term live operations to combat rising user acquisition costs.
- DeNA plans to launch five mobile games featuring major intellectual properties between late 2015 and March 2017, targeting hundreds of millions of users globally.
- Samsung is shifting its app store strategy toward a curated experience, partnering with reputable media sources to recommend a modest volume of high-quality content rather than hosting hundreds of thousands of apps.
- Disney Interactive utilizes a hybrid development model, balancing in-house production with strategic licensing partnerships, such as their collaboration with Kabam for midcore titles and DeNA for regional expertise.
Biz Daily: Why is Gameloft losing its players?
Gameloft’s financial performance for the second quarter of 2015 reveals a growing disconnect between high download volumes and actual revenue generation.
- Gameloft’s monthly active users (MAU) dropped 10% to 162 million, while daily active users (DAU) fell 17% to 19 million in Q2 2015, indicating a significant failure in player retention.
- Despite high download volumes, Gameloft experienced a 5% quarter-on-quarter decline in sales, signaling instability in its transition to a games-as-a-service model.
- Reported Q2 2015 sales of 62 million euros represent a 12% year-on-year increase, but this growth shrinks to a modest 3% when adjusted for currency fluctuations.
Biz Daily: GREE restructures with new offices in Berlin and Melbourne
GREE, the Japanese mobile game publisher, is undergoing a significant strategic restructuring of its international operations.
- GREE is restructuring its international operations by closing a significant portion of its San Francisco presence, which recently saw a 30 percent reduction in staff.
- The company is establishing new offices in Berlin and Melbourne to shift its focus toward European and Australian markets and better align with Western consumer preferences.
- GREE acquired the mobile game developer Twiitch in Melbourne to gain expertise in 3D, mid-core strategy games and modernize its portfolio away from traditional card-battle titles.
How to break into the western markets - PG Connects Bangalore 2015
Expanding into Western gaming markets requires a strategic shift toward professional business operations, legal diligence, and a resilient entrepreneurial mindset.
- Successful expansion into Western markets requires treating a studio as a formal business entity by securing robust shareholder agreements, managing cash flow, and utilizing professional legal counsel.
- Mobile game developers should target the casual sector by focusing on accessible, low-stress mechanics like match-three or hidden-object games rather than high-intensity competition.
- Audience demographics in the Western casual mobile market are predominantly older and female, necessitating the avoidance of gender-based design stereotypes in favor of mechanics that prioritize relaxation and social connection.
Disney on games that capture India's imagination - PG Connects Bangalore 2015
The Indian mobile gaming sector is undergoing a significant maturation phase, characterized by a strategic shift from Western-dependent design toward the creation of high-quality, locally relevant content.
- The Indian mobile gaming sector is transitioning from Western-dependent design to a professionalized ecosystem focused on high-quality, locally relevant content.
- Developers must choose between targeting the massive, untapped demographic of first-time domestic mobile users or pursuing established global markets in the US, UK, and Australia.
- Success in global markets requires a data-driven approach, high-quality user experience, and a strategic shift toward premium models in educational and ultra-casual segments.
Biz Daily: Apple's cagey attitude over Apple Watch sales
Apple’s fiscal year 2015 third-quarter earnings report triggered a significant market reaction, resulting in a 50 billion dollar decline in market capitalization and an eight percent drop in stock value.
- Apple’s refusal to disclose specific Apple Watch sales figures during its Q3 2015 earnings report triggered a $50 billion decline in market capitalization and an 8% drop in stock value.
- Despite the lack of official data, Apple reported strong overall quarterly performance with 47.5 million iPhones sold and a 33% revenue increase to $49.6 billion.
- Independent analysts estimate that Apple Watch sales reached between two and three million units during the quarter.
Biz Daily: What next for Nintendo in a post-Iwata world?
The passing of Nintendo CEO Satoru Iwata has placed the company at a critical strategic crossroads, prompting an evaluation of its future direction in a rapidly fragmenting gaming landscape.
- Nintendo is at a strategic crossroads following the 2015 passing of CEO Satoru Iwata, necessitating a shift in direction to navigate a fragmenting gaming landscape.
- Despite the hardware successes of the DS and Wii during Iwata’s 2002–2015 tenure, the company struggled with the 3DS and the commercial failure of the Wii U, leading to stagnant share prices.
- Nintendo’s institutional hesitation regarding mobile gaming is evidenced by a lack of specific details for its five-title partnership with DeNA, reflecting a broader internal resistance to modern monetization models.
Biz Daily: Why did GREE sack 30% of its SF office?
GREE, a prominent Japanese mobile gaming platform, has initiated a significant restructuring effort by laying off 30% of its San Francisco-based workforce.
- GREE has laid off 30% of its San Francisco workforce as part of a broader international contraction that previously included closing its London office and Vancouver development studio.
- The restructuring aims to address profitability challenges and recurring project cancellations despite the company generating approximately $800 million in annual revenue.
- The company is struggling to transition from its historical dominance in the Japanese feature phone market to achieving a breakout hit in the global smartphone gaming sector.
Biz Daily: Did Fallout Shelter only make $5.1M?
Fallout Shelter emerged as a significant surprise in the 2015 mobile gaming landscape, achieving high rankings on Western top-grossing charts shortly after its release.
- Fallout Shelter generated approximately $5.1 million in its first two weeks following its June 2015 launch, representing a ten-fold return on development costs estimated at under $500,000.
- Despite initial success, the game experienced a rapid decline from the top 200 grossing charts in major markets including the U.S., U.K., Germany, and France.
- The game's revenue potential was structurally capped by a 200-dweller capacity limit, which effectively concluded the player experience once reached.
Biz Daily: The significance of Angry Birds 2
The announcement of Angry Birds 2 marks a pivotal strategic shift for Rovio, signaling the developer's transition toward a modern, free-to-play model for its flagship franchise.
- Rovio is transitioning its flagship Angry Birds franchise from a premium, paid model to a modern, free-to-play games-as-a-service structure with the launch of Angry Birds 2 on July 30.
- This strategic pivot addresses Rovio’s historical lag in adopting aggressive free-to-play monetization mechanics compared to industry competitors like Supercell.
- To support this business model shift, Rovio has spent the last six months recruiting specialized industry talent with deep expertise in free-to-play game design.
Biz Daily: Can Gacha, Fusion and Collection work in the west?
The global mobile gaming industry is currently at a critical juncture, with experts projecting significant growth potential by adopting mechanics that have long defined the Japanese market.
- The global mobile gaming industry could see revenue increase tenfold by adopting Japanese-centric engagement models that prioritize collection, randomization, and fusion over traditional skill-based progression.
- Western mobile development is currently in a state of pre-peak growth, lagging behind the Japanese market's superior revenue per user metrics.
- The core strategy for growth relies on three pillars: Gacha for randomized monetization, collection for inventory depth, and fusion for asset management and power progression.
Biz Daily: Why Apple rebooted iPod Touch with A8 chip
Apple has unexpectedly revitalized the iPod touch line, positioning the device as a high-performance, cost-effective entry point into the iOS ecosystem.
- Apple upgraded the iPod touch with the A8 chip and M8 motion co-processor, delivering a reported ten-fold increase in graphical processing power compared to the previous A7 iteration.
- The hardware refresh is strategically designed to lower the barrier to entry for the iOS ecosystem, providing a cost-effective alternative to high-performance Android devices.
- By omitting cellular capabilities, Apple is targeting a niche market of younger, budget-conscious users who require gaming and media functionality without a smartphone data plan.