The performance of Zynga’s stock in the almost two years since its IPO has chilled public markets ambitions for gaming companies. But two Western gaming developers, both of which have capably navigated a transition from Facebook (and other web-based platforms) to mobile, currently contend for the distinction of most likely to undertake the first post-Zynga [...]
Lifetime Customer Value
(The model referenced throughout this post can be downloaded here) Supercell’s recent $100mm secondary financing round raises some interesting questions about how mobile game developers capitalize on a hit game. A title in the Top 10 grossing chart for the US can, as evidenced by a number of recent high-profile examples, generate upwards of $500,000 [...]
The macro trend playing out in mobile gaming over the past six months has been the shift away from casual gaming toward the mid-core experience: niche games driving high ARPU values through extended retention profiles and engagement metrics. You know a trend has breached the public consciousness when Forbes writes about it, which it did [...]
It should be obvious to anyone operating in the mobile space that app discovery is ripe for disruption: slide four from MoPub’s recent 4th Quarter Mobile Advertising Marketplace Report illustrates how rapidly eCPMs are rising on both iOS and Android (the entire report is worth reading).
A comprehensive free-to-play game model: revenue, DAU, virality, and retention (spreadsheet included)
Download the model here (updated 20-03-2013) As free-to-play transitions from an emerging, vaguely defined abstraction into the dominant business model on mobile, developers will face an increasing need to understand the concept from an analytical standpoint. I spent some time this weekend thinking about how free-to-play games generate revenue: what mechanics converge to deliver positive ROI on the [...]
I read this piece on GigaOM the other day about what VCs look for when investing in gaming start-ups, and this bit caught my eye: Hyatt’s number one metric for games that interest him as investment prospects: Day-one retention, i.e. whether new users come back the next day to play. This is an especially important way [...]