Coming soon ...

My next talk is in creation. I decided not to do any Dissection talks anymore due to many reasons but someone convinced me to do this one - simply as I spend a long time analyzing it (3 years in fact), the longest ever it took to finalize this talk. I will let you know when and where I will hold this talk.

App Stores rip off Developers?

So this made the rounds:

http://www.gamesindustry.biz/articles/2017-08-22-tim-sweeney-app-stores-are-pocketing-a-huge-amount-of-profit-at-developers-expense

30%. Seems a lot. Rip off right? The problem is that most people saying this, including Tim Sweeney, never operated an F2P game outside an app store and have not the faintest about the operational cost.

So let's see what Apple (Google is similar but slightly worse) does for you if you sell through their store - all included in the 30%:

Payment Systems & Cost
The App Store offers payment systems and an easy way to pay, much easier than any other payment systems found online, increasing conversion immensely. This alone is worth a lot.
Everyone who worked on payment system integration knows how much work goes into this besides systems, UI, flow, optimizing etc. It is a lot of work and usually, you need 3-4 people just working on this - permanently.
Payment providers charge various single digit % of your revenue usually. So this is worth that percentage plus the bonus of ease of use.

In Store Payment System & Promotions
Apple offers iTunes cards in stores in most countries. Including promotions and sales of these. Remember if Apple does a sale on iTunes cards Apple pays for it, your margin is unaffected by it.
For free. This is an effective payment system for people without access to credit cards or bank accounts. Remember stores selling these also take a share - so this one is included as well.

VAT Handling
If you ever ran into accounting in F2P companies their biggest headache is VAT handling worldwide. Every country has different VAT rates, laws and handling of virtual goods. It is a huge problem and usually, accounting is busy fixing things and keeping track of changing laws - in every single country. With Apple, you get a single invoice per month. VAT is virtually gone here. So yes you would easily need an accounting department for handling payments yourself - with Apple you need none. Zero.

Returns, Cancellations, Fraud
The second biggest headache of handling payments yourself is fraud & returns. Apple does this for you.

Available World Wide
Yes, world wide. No issues with integrating how many payment systems so everyone in any country can pay? I remember that one company I worked for had 120+ payment systems online and integrated 2-3 per week (!). Want to do this yourself? Good luck.

Download Cost & Updates
You don't pay for traffic, hosting, and more important for updating your app. The app store and iOS do this for you, usually automatic for the users. And you don't even pay for the traffic or hosting.

In other words, if App Stores wouldn't do all this you, as a small to a medium sized developer, would need at least 5-10 more people handling all of this if you launch world wide.

Is this worth 30%? Easily. And btw Tim Sweeney charges 30% as well in their Unreal market place ;)

Did I forget another advantage? Let me know.

People hate Mario on iOS - do they?

Mario mobile is upon us, at least the iOS world. And check this out:

https://sensortower.com/ios/us/nintendo-co-ltd/app/super-mario-run/1145275343/#review-history?breakdown

The number of 1 star reviews is staggering. Of course most people are angry about the $9.99 paywall after the first world. So there are two reasons why:

1) The way they build in the paywall is not nice to consumers. f2p managed to find ways way better than this.

2) Users are trained now games are free. 95% of all revenue and sales are f2p games. And as I am telling in many of my talks: most mobile gamers are new to games, so the heck they know they need to pay $10 after three levels. f2p would at least allow you to have fun for free and enhance it by paying what you want, not what Nintendo wants.

Some interesting observations about Mario.

There are many f2p mechanics inside the game, like multiple currency, the way they unlock things etc. Paid apps usually do not have this.
So I think the game was planned at f2p and Nintendo pulled the plug late and removed f2p and implemented the paywall.

Huge mistake in terms of revenue, but hey, its Nintendo and their IP, they might have other plans.

The UI is really bad at places. Their friends list? Linking your game with accounts? Thats not how mobile games look like. In fact many of the bad UI habits are pure Nintendo Wii/WiiU/3DS adaptions. We even have the dreaded friend codes :/

There are better runners in the app store than Mario. But hey its Mario. Revenue wise it was a bad decision to remove f2p. The best selling runner Subway surfer does more revenue each year than Mario will do in a life time.

(Link with regards to @ZhugeEX)

Pokemon and others - real time

Check this out. Hang in a while.

http://appinstitute.com/pokemongo-realtime-stats/

Why Apps might be dead (Update)

We remember. Years ago we called them Programs or Software. Since Apple launched the App Store we call them Apps, even on PC or other devices. Even the TV now has apps. Researchers forecasted the Web is dead, as its content and interaction move to App's of the provider instead. This is already happening as statistics prove (google for access numbers of mobile for Google, Youtube etc.)

Now Apple opened maps, messenger, Fotos and more of their apps to developers, allowing them to develop plugins. In my opinion Apple isn't doing this for fun, they are forced to do this.

The trend is less App switching. We have so many apps now that people simply no longer want to switch between them. Like going to maps to look for a restaurant, reserve in another app, book an Uber in their app to drive there.

This also explains the incredible value WeChat and Line have now. Check this out:

http://www.gamesindustry.biz/articles/2016-06-13-line-to-launch-ipo-at-USD5-5-billion-valuation

This means WhatsApp is under pressure. The big secret of those new chat programs in Asia is their plugins. You can do everything inside the chat you normally do in Apps. In fact in China WeChat is so massive that if you aren't in WeChat with your service you virtually don' exist.

Facebook looks into this direction with their Messenger, but WhatsApp seems to sleep regarding this matter.

We'll see. the world of apps is changing again.

How this effects mobile games? Well, the first games making millions are inside WeChat. The other way around works too: why isn't your chat and clan chat no in those chat apps instead doing your own? There is my hint.

(Update) Techrunch well written article on the Messaging War:

https://techcrunch.com/2016/06/14/apples-ios-10-finally-truly-begins-the-mobile-messaging-war/

iOS App Store congestion

Many developers and publishers alike are worried about visibility on the App store. To counter this they try to spend more and more money on user acquisition. Or they find creative ways to game the App Store.

However there is another obvious way getting your App visible. Have a bloody good & distinct game.

If you do whatever everyone else is doing then the only way to separate you from them is either price or marketing spend (aka visibility). Price is tough as you can't go cheaper than free (well you can, but that is not here yet).

Lets see some examples: strategy games. There are really bloody good strategy games on the App Store. Check them out yourself: http://toucharcade.com/top-reviews/strategy/?time=all

Just look at the 5 star rated ones. Awesome isn't it. The key trick is that I put on "life time", i.e. all 5 star rated games since the App Store exists from that site.

Why this? Because the iPhone to an extend doesn't change a lot in terms of games. Practically you compete against all games having been released since ... lets say the iPhone 4, that was in 2010.

This is what I am worried about more than visibility. In the next few years you need to compete against all hits since 2010. That is kind of unique. On consoles hits from 2 years ago aren't really competing anymore with you. On iOS they are.

Look at the top grossing charts. do you realize that most of these have been released prior 2013?

Check yourself: http://blog.tapjoy.com/app-development/what-do-apples-top-grossing-iphone-apps-of-2013-all-ha/

So if you plan to make a runner game for example don#t do this unless you are 100% sure you are going to revolutionize that genre. Or a tower defense game.

Do what no one does. Or do it entirely different. Be bold. Be different. But be realistic.

Also check this list out (Metacritic): http://www.metacritic.com/browse/games/genre/metascore/strategy/ios?view=condensed

And do  me a favour and buy one of my all time favorite real time strategy games on iOS: Red Conquest.

Too cool not to share

IDIOTS from BLR_VFX on Vimeo.

From another source

I am doing my talk at GDC Next today and in relation to this I would love to share this research done by Benedict Evans which clearly supports my point: A change is coming.

2013 11 mobile eating the world from Benedict Evans

Preview of my GDC Next talk

by Gameindustry.biz:

http://www.gamesindustry.biz/articles/2013-11-01-mobile-evolution-will-make-todays-market-irrelevant

Have fun reading!

Gamasutra Interview

For your reading pleasure my interview about my upcoming talk at GDC Next:

http://www.gamasutra.com/view/news/200393/Whats_Next_Move_to_mobile_or_fall_behind.php

The App Store Problem

Developers complain that their game doesn't sell in the app store or doesn't have enough downloads and thus doesn't make enough revenue through their in app purchases.

There are problems getting visibility on the app store, its key to success. However the main problem I see isn't visibility - its boredom of the users looking at your app.

Let me give you one example: I am looking for good strategy games in my iPad and iPhone since months and can't find a lot. Most so called strategy games are Tower Defense games or variations of games already in the app store since years. There are exceptions like Autumn Dynasty or Ravenmark. But most other strategy titles can be put into 3 or 4 drawers or "me too" or clones of existing concepts. Boring.

The same is happening on many other genres. It seems that developers look whats selling and copy that concept - and then complain their game isn't selling. How lame is that. I can understand that licensed IP's for movies like Despicable Me simply copy a game concept (runners) and be good with it - but long term revenue is not happening on game types which exist in the app store since years.

Developer friends told me they are tired of the App Store. Its not as exiting as it used to be. But that's exactly whats happening. 90% of all games being published already exist.

That's exactly why indies have better success than commercial developers: they despise copying concepts.

So the first step for success on the iOS store is to make a big step away to all mass concepts like runners, tower defenses and match three games.

n00b iPhone app mistakes

#1: ignore the sound switch the user set. Blare loud in the office when I start your app although I switched it mute (talking to you Skype!)

#2: save games. That's so last century. Auto save. Also cloud save so I can reuse it with re-installs or across devices. Thank you.

#3 super long intros. You know that most players don't even remember your company name and really don't care about the licenses you used. Stop doing this shit.

#4: make intros not cancellable. Yes. Let the user look through a 1 minute intro before he can play. Most users uninstalled your game faster than your intro finishes.

#5: full animated cinematic and voiced over sequences. Make your game a 1.8 GB download. Thank you. Enough said? Its a mobile device.

#6: make a mandatory registration. Yes, let me register before I can play and your registration either doesn't work or doesn't like m password or even needs a confirmation email click. Sorry. Uninstall is so much quicker and even user friendly!

#7: before I even finish your tutorial you ask me to rate your game. You know. I don't. Let me take a look at your game first. Thank you.

#8: Don't use incremental updates. Let me patch a 1.2 GB update. Thanks. Took an hour.

#9: Don't give me those updates "bug fixes". Give me a list of bug fixes. I know you just want to reset your ratings, ad placement or trackers.

#10 (Feedback from Tino): When I turn off Notifications I mean OFF. Not "maybe I can notify you again - without asking?"

Having more oddities and don#t likes of games on iOS? Let me know!

June 10th 2013 will be remembered

June 10th will be remembered as the day which changed our (games) industry. June 10th is the day where the key press conference are on E3. Big announcements will be made by Sony and Microsoft for their new consoles.

But.

Apple makes another keynote on June 10th as well. Deliberately placed to compete with the important gaming conference. Readers take note. I warned you.

June 10th 2013. Not a nice date to remember. 06.10.2013 (US) or 10.06.2013. 100613. 061013. Doesn't look nice.

Here is what else happened June 10th in our history: http://www.historyorb.com/day/june/10

Mobile is eating the world

What I said on Quo Vadis but in better slides:

2013 05 BEA - ’Mobile is eating the World’ from bge20

Mobile is not worth it (NOT!)

I will remind Bobby about this in 5 years when he regets this:

http://www.gamesindustry.biz/articles/2013-05-09-activisions-kotick-brushes-aside-the-mobile-market

Cheers

Additional signs of change

EA posted its financial earnings and it disappoints. Without their cash of 1.6b in the bank they would be gone by now. "Don't expect growth on the giants EA and Activision" they say. Ok, so why do others grow like hell. And some new mobile companies have a market cap of 9 billion. Wtf.

Those are all signs of disruption. Its happening and quick. The old games market will change dramatically in the next 2-3 years, so don't moan if your favorite FPS is no longer the #1 topic on the web sites.

Then EA announced they bought the Star Wars license. Oh my. Thanks no, I see what you did to Harry Potter. And fail, major fail: the license excludes online, social and mobile platforms. That deal is like an ancient relic. Fire the guy who did it.

But then its all about small 90 men companies doing more money than the old economy.

So when are you joining?

Major change incoming

We are living through a major change in technology and digital media. A large one incoming. Get ready.

This is my talk I held at Quo Vadis in Berlin 2013

Why mobile/Touch will win from Teut Weidemann

This is important

Times change fast, faster than ever before. I couldn't have made a better presentation than these guys: READ all slides to the end. World changing.

2012 KPCB Internet Trends Year-End Update from Kleiner Perkins Caufield & Byers

Wrong prejudice preconceptions?

India is a huge country with over 1.2 billion people. So we should think its huge for games, smartphones or computers. But it isn't. Mechanics we learn to use to market products no longer work in that country. We wrongly assume that our market mechanics work in countries like India, or Russia, or Brasil. Why is this?

To understand those markets and people you have to understand how they developed.

We have grown up with home computers, then switched to PC, then hooked the PC up to the internet. Then we got smartphones and went online with them too. This is our pattern and this can be used to target us for marketing or to look for similarities when launching products.

In markets like China or India people never had home computers. Or PC's. When the internet came they had to go to internet cafes to go online. This means that they encountered gaming as online only, as those games were default installed and people usually went to those places in groups, i.e. in social groups to play together. That is one reason why online games are so huge in Asia: they never experienced the grand history of single player games.

What else is different? Well if you do not have a computer at home how do you manage the daily tasks where we usually access the internet? Mobile. In India and China the primary access to the internet including search engines are mobile phones. At one time the number of searches on mobile in China was larger than searches on Google - worldwide.

In the days of the smartphone this doesn't sound that strange, but you have to realize that even before the iPhone revolutionized the phone market that the Asians went online with their phones. They had their own standards, search engines and even the UMTS network was implemented sooner than here. I remember a time where I had to rent an UMTS phone for Korea as their phones were already pure digital.

Let us return to India. The reason why I use that example is that we operate in free to play business and usually you target people by using Google Adsense or Facebook ads (Facebook has only a 5% penetration - still 62m people though). Now in India when no one is sitting in front of his computer - how do you get them to actually notice your product?

A good friend of mine told me how to target India, and this actually ruined my plans to launch games in India "easily" without leaving my office:

Billboards it is. Can you imagine to fill India with its vast space and huge cities with enough billboards to get noticed? That's tough - close to impossible. So how about mobile? Apple has some problem in India selling their iPhone but so does Samsung.

India still has very strong local providers who tune their services and phones to the populations specific attributes mostly using phone types we no longer use so it will be hard to break through them. To target people through those custom services is even harder. So time will tell.

So that are a couple of reasons why a country with 1.2 billion people isn't a huge gaming market yet. And that also means that rather sooner or later India will explode and be a huge market for all of us. Better be prepared. Otherwise you will miss markets like you did miss Brazil. Brazil you ask? Well ... research yourself, its huge already for online games - it already exploded.

The challenge of going digital

I remember the time when publishers all were looking forward going digital with distribution. "It's here" they said and most of them were too early.

Now as digital is here there is a resistance going digital as they finally realize what it means: it means your product is visible worldwide - all at once - and if its quality is not good enough everyone is going to know about it.

In the old economy retail played a major role. It allows you to control sales by controlling shelf space. If you were good at doing this you could sell a minimum viable number of copies of your games - even if they are under average quality. There is always the 1% impulse buyers.

Now that is gone if you go digital. Visibility is no longer under your retail sales control. Someone else tells his audience whether your product is cool or not. No wonder the big guns try to establish their own digital distribution portals like Origin or U-Play and clone Steam - to control the "digital shelf".

Take a look at Steam: estimated revenues are 1.5b US$ in 2012 excluding micro transactions.

This means Steam is huge. In fact their revenues are larger than most publishers. And this does NOT include item sales! Check out the footprint: Steam is as important as retail. So yes digital is here and publishers are cautious what it really means.

It means it will be harder to get attention as suddenly all products available - worldwide - are fighting for attention. Before only your local markets did, and many smaller companies didn't even enter your home turf. Now everyone can. A good preview how hard it will be to get visibility is the App Store.

"Wait a second - what about consoles?" you might say. Recent rumors and leaks suggests that the next generation console will offer all games digitally and on disc with both offering instant play, with the disc merely replacing the necessary download. This means digital will be 100% there for all games - circumventing retail. And we know that digital trumps retail for many users as you can buy when and whatever you want independent on distance, time and location.