Market Analysis reports and market data
Documents
Korean winners Com2uS and Gamevil, and King's good/bad IPO timing
The mobile gaming industry experienced significant financial shifts in late 2014, highlighted by the quarterly performance of Korean publishers Com2uS and Gamevil, alongside the market challenges faced by King.
- Com2uS achieved significant growth in late 2014, doubling its quarterly revenue to $85 million with a 50% profit margin, driven by the success of 'Summoners War' and 'Ace Fishing'.
- King reported a 13% decline in quarterly sales despite generating $514 million in revenue, highlighting the difficulty of sustaining growth after a peak driven by a single franchise, 'Candy Crush Saga'.
- To address investor concerns regarding its reliance on a flagship title, King highlighted that its non-Candy Crush business generates $1 billion in annual revenue and initiated a dividend strategy to provide shareholder value.
Nordic Game Sales 2014
The "Nordic Game Sales 2014" document analyzes the performance of the physical retail game market across Nordic countries in 2014.
- The Nordic video game market experienced an 18 percent decline in physical retail value in 2014, driven by a structural shift toward digital distribution and service-oriented revenue models.
- Market performance was heavily concentrated in major multi-platform franchises, with action titles capturing 25 percent of the market and sports games accounting for 16 percent.
- Top-selling titles across the region in 2014 included FIFA 15, Grand Theft Auto V, and Call of Duty: Advanced Warfare.
F2P's soul, Glu's financials, and the even hotter Helsinki scene
The mobile gaming industry in late 2014 reflects a period of significant financial transition, characterized by the dominance of established franchises and the volatility of free-to-play (F2P) business models.
- Glu Mobile achieved profitability in late 2014 by leveraging the Kim Kardashian brand, which generated $43 million in its first full quarter and accounted for 52% of the company's total revenue.
- Despite strong earnings, Glu Mobile's share price dropped 20% in a single day as investors reacted to performance falling short of high market expectations.
- Traditional console giants are successfully capturing mobile market share by migrating core franchises, with EA reporting a 64% year-over-year increase in mobile revenue to $123 million and Ubisoft reporting a 45% increase in mobile sales.
The Lithuanian mobile scene, power of merchandising, and 5 types of iPad
The Lithuanian mobile gaming sector is emerging as a significant regional hub, driven by favorable economic conditions and strategic infrastructure investments.
- Apple has shifted its iPad strategy from a singular product focus to a segmented model featuring five distinct hardware tiers to capture diverse market segments and manage inventory across different price points.
- Lithuania is emerging as a mobile gaming hub, attracting major firms like Game Insight due to competitive corporate tax rates, lower labor costs, and EU membership status.
- Effective merchandising in mobile gaming requires a minimum threshold of 10 million monthly active players to ensure a brand is sufficiently recognizable to support revenue growth.
Fiksu on overcoming the dangers of discoverability
The primary challenge for mobile application developers is overcoming discoverability hurdles in a saturated market where users typically engage with only a fraction of their installed apps.
- Prioritize 'cost-per-loyal-user' over 'cost-per-install' as the primary metric, defining a loyal user as someone who engages at least three times and completes a value-added action like a purchase or registration.
- Focus acquisition efforts on retention, as over 20% of mobile app downloads are currently used only once.
- Target the top 25 apps in store rankings, as 88% of users limit their browsing exclusively to this group.
Are we in an M&A bubble, iOS 8 rates plateau and World of Tanks Blitz
The gaming industry experienced a record-breaking third quarter in 2014 regarding mergers and acquisitions, driven by five major deals including Microsoft’s acquisition of Minecraft for $2.5 billion and Amazon’s purchase of Twitch for nearly $1 billion.
- Q3 2014 saw record-breaking M&A activity in the gaming industry, headlined by Microsoft’s $2.5 billion acquisition of Minecraft and Amazon’s nearly $1 billion purchase of Twitch.
- Consolidation is extending beyond major game studios into industry infrastructure, evidenced by RNTS Media’s $190 million acquisition of user-acquisition firm Fyber.
- iOS 8 adoption rates have plateaued and are currently trailing the update speeds observed for iOS 6 and 7, signaling a shift toward increased fragmentation for mobile developers.
Why the lucrative Korean mobile games market is an uphill battle
The South Korean mobile gaming market represents a significant global opportunity, characterized by a population that views gaming as a lifestyle and a mature understanding of the free-to-play model.
- The South Korean market is dominated by local developers who excel at high-intensity 'games as a service' operations, including 24/7 engagement cycles and frequent daily events.
- Success in the region requires a 'digital-first' mindset where players treat virtual assets with the same gravity and value as physical property.
- Google Play is the primary distribution channel, while once-essential platforms like KakaoGame have seen their effectiveness decline due to overcrowding and discoverability issues.
Hitcents on how it defeated the pirates and built a business in China
Hitcents, a US-based creative agency and game developer, entered the Chinese market to address widespread piracy of its flagship title, Draw Stickman.
- The Chinese mobile gaming market is highly fragmented, featuring over 100 Android app stores categorized into carrier-specific, third-party, and hardware-based channels.
- Successful entry into China requires deep 'culturalization' beyond simple localization, including adjusting art styles, incorporating local themes, and redesigning tutorials to be significantly more prescriptive and directive than Western versions.
- Carrier billing is essential for monetization in China because it allows for transactions without internet access, with typical purchase sizes ranging from 1 to 30 RNB.
Essential Video Game News: Market Data and Consumption – France (October 2014)
This document, "Essential Video Game News: Market Data and Consumption – France (October 2014)," provides an overview of the French video game market, consumer profiles, and industry forecasts.
- The French video game industry is the country's second-largest leisure sector, with 75% of the population aged 10 to 65 playing games at least occasionally.
- Market forecasts for 2014 projected a 7% increase in total industry turnover and a 42% surge in hardware sales, driven by the eighth generation of consoles.
- By the end of 2013, over 17 million French households were equipped with home or handheld gaming consoles.
Is Minecraft worth $2.5B, iOS 8's slow uptake and why do gamers and journalists hate each other?
This analysis examines key developments in the gaming and mobile technology sectors as of mid-September 2014, focusing on high-profile acquisitions, hardware shifts, and industry cultural tensions.
- Microsoft acquired Minecraft for $2.5 billion, a valuation that analysts consider significantly higher than comparable industry deals like those involving Supercell or King.
- Minecraft creator Markus 'Notch' Persson exited the company following the acquisition, citing a desire to move away from the business side of the industry to maintain personal autonomy.
- Apple's iOS 8 adoption rates are slower than previous versions, primarily due to the high storage requirements needed for the installation process.
The Chinese PS Vita? The iReadyGo Much i5
Snail Games, a prominent Chinese PC MMOG publisher, is expanding its footprint into the mobile sector by introducing the iReadyGo Much i5, a dedicated gaming smartphone.
- Snail Games is vertically integrating its business model by acting as a hardware manufacturer, mobile service provider, and software publisher through the launch of the iReadyGo Much i5 smartphone.
- The iReadyGo Much i5 is a dedicated gaming device featuring physical controls, dual joysticks, and a curated Android app store managed by Snail Games.
- Snail Games is leveraging its status as a virtual network operator in China to bundle the device with proprietary SIM cards, offering incentives like free game downloads to drive ecosystem adoption.
Games You Might Not Have Tried: Humble Bundle - Find New Games - Extra Credits
The primary purpose of this analysis is to highlight overlooked indie video games that offer unique design perspectives, narrative depth, or innovative mechanics.
- Independent developers frequently prioritize novel mechanical and narrative concepts over high-fidelity production, resulting in unique gameplay loops that challenge traditional industry tropes.
- Titles like Enemy Mind and One Finger Death Punch demonstrate how indie studios innovate by distilling complex genres into specific, streamlined mechanics like ship-possession and rhythmic two-button brawling.
- Games such as Hand of Fate successfully blend disparate genres, specifically integrating roguelike deck-building with third-person arena combat.