Showing posts with label iphone. Show all posts
Showing posts with label iphone. Show all posts
2018/08/14
2017/08/25
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.
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.
2017/08/18
Honorary Consultation
Sometimes I stumble across a game I really like - from an Indie team. And I offer to help them for free. The only thing we do is a handshake deal if they get filthy rich by their game they thank me.
So recently two of them have been released and I would love you all to download and review it in the app store ok? Give them 5 stars, they are small teams and did wonderful on both projects:
Cat Quest (iOS, Android, Steam)
Look here: https://thegentlebros.com/catquest/
It's a great action RPG and in my opinion, fits mobile very well.
Hades Star
If you like space games, logistics and PvE this one is for you. A very good laid back game pacing on your habit, not the games.
So recently two of them have been released and I would love you all to download and review it in the app store ok? Give them 5 stars, they are small teams and did wonderful on both projects:
Cat Quest (iOS, Android, Steam)
Look here: https://thegentlebros.com/catquest/
It's a great action RPG and in my opinion, fits mobile very well.
Hades Star
Look here: http://www.hadesstar.com/
2017/06/19
Common Mistakes in f2p Design - video!
Here is the video of my Casual Connect talk from this February - Common Mistakes in f2p Design.
Enjoy. And if you like it please consider visiting any of the four Casual Connects happening each year all over the globe.
2016/12/17
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)
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
2016/03/02
Casual Connect Amsterdam
So my talk at Casual Connect Amsterdam was a success. The room was packed, all seats taken and many people stood on the sides. Many ask for my slides or the video but I have to admit the video / slides will be delayed until after Casual Connect Asia where I will repeat a slightly longer edit of the same topic. Please be patient!
2014/01/20
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.
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.
2013/11/22
2013/07/14
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.
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.
2013/06/25
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!
#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!
2013/05/27
2013/05/08
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?
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?
2013/04/27
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
This is my talk I held at Quo Vadis in Berlin 2013
2013/04/23
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.
2013/01/28
Time runs fast
I can't believe it is only three years ago that Apple announced the iPad. 66 million sold in 2012 alone, the 100th million unit sold in October 2012. The iPad is responsible for the change in computing and even gaming.
It single handily destroyed the Netbook market.
It made the Notebook market suffer.
It changed the gaming market.
Even my boss carries around an iPad 4 now - 24h a day.
Studies show that iPad gaming happens mostly on the couch and in bed. That iPad players are more core than we might think. That iPad gamer has more disposable income. That console gaming time suffers as soon as there is an iPad in the house hold.
And the best as last: the iPad is the only wife compatible gaming device so far.
And it just has started 3 years ago. How will the tablet market look like in 3 more years? The power of the console in your hands on 8 hours battery on a resolution larger than most monitors in your household.
Update, you should follow Asymco for recent data: https://twitter.com/asymco
I didn't know the iPad outsells the iPhone by performance relative from the start. Amazing.
It single handily destroyed the Netbook market.
It made the Notebook market suffer.
It changed the gaming market.
Even my boss carries around an iPad 4 now - 24h a day.
Studies show that iPad gaming happens mostly on the couch and in bed. That iPad players are more core than we might think. That iPad gamer has more disposable income. That console gaming time suffers as soon as there is an iPad in the house hold.
And the best as last: the iPad is the only wife compatible gaming device so far.
And it just has started 3 years ago. How will the tablet market look like in 3 more years? The power of the console in your hands on 8 hours battery on a resolution larger than most monitors in your household.
Update, you should follow Asymco for recent data: https://twitter.com/asymco
I didn't know the iPad outsells the iPhone by performance relative from the start. Amazing.
2013/01/13
The World will end as we know it - in 2013
I mean the game industry world - the one we are used to. The one with PC games being niche, the one with consoles being the big revenue makers. Where there is only one MMO RPG dominating the world. Where games are usually all around the big IP's of the top publishers - on console.
The major trends which we have seen in 2012 surfacing which will be even stronger in 2013 are:
Crowd Funding
It is an additional source for money. And as most people know in the gaming industry - money is the #1 problem of all developers. So this is an alternative. Not the best, but it is in addition to what we already have. And it also is able to fund games which are under the threshold of publishers - this means single man games, small teams, games with budgets of less then 1 million.
Of course there are the big million budget funded games - but those will be the "AAA" of kick starter. The important thing is not the money or that users decide which games are being made - the important thing is that the industry will see a new source of creativity from that funding. This impulse is desperately needed as otherwise CoD 10 and Fifa 2014 and Halo 5 and xyz 10 are all the same again and again.
Digital Distribution
It took long enough. We had hoped it will happen back in 2000 but the internet bubble bursting destroyed our master plan. Finally digital distribution has a break through and I expect this to quickly push into the console space as well.
There are more games being sold on digital platforms than on retail. Add it up. You will come to the same conclusion. Note I said "most" as in numbers, not in revenue. That will follow. Quickly.
What does this mean? It means retail becomes secondary, not the major platform anymore. The time as we went to stores to get games are over. Amazon does the rest of the death push of retail - but games will be a niche shelf space pretty soon. - if consoles push digital.
'Mobile' as major game space
I put mobile in quotes as studies shows that the main space people play mobile games is the couch or bed - so its not really "mobile". Still Smartphones and iPads will push the games market to bigger segments as even the console market. Even now the mobile market is the only one where western game makers have even access to all Asian markets. Note that consoles don't exist there and most western online games (the only one popular on PC) do not have a single chance of being published there. But hey, now even Asian's play single player games - but on mobile.
Why is Asia so important for mobile? Because it doubles, nearly triples the revenue potential of games on the devices with no major investment. This is huge. The Asian games market is so big that we (in the west) have not even a glimpse of its power.
So will mobile destroy consoles? I think it will push aside handheld gaming as we know it but AAA console games will stay - at least for the next generation. But as more and more developers find it easier to publish on mobile the creativity and cool games might move away from consoles to tablets.
Free to Play
F2p seems saturated 'they' say. I hear that often but always shake my head. F2p has just started and shows some saturation - but only in spaces where big companies are located and all their copy cats - as those copy cats don't know how to enter the f2p market but to copy the lead publishers - and of course fail ;)
Believe me: there are many game genres and types still to be published successfully as f2p as big as League of Legends or even World of Tanks. There is still plenty of space. Want proof? Which publisher would have accepted a Counterstrike type game with World War II tanks and persistent development? NO ONE!
Of course now they say "yes of course it works". But before? Nah, they wouldn't even have gotten an appointment.
So there is lots of space. The primary reason is being online: when you got the world internet population as potential customers it is easier to reach a critical mass to be profitable then in retail or any other publishing platform.
Online - Persistent
Games have shown that if they are online (even if only basic asynchronous) and persistent that the success doubles easily. The recent example of Clash of Clans and Hay Day shows that also on mobile it is a pre-requisite for huge success potential.
So the time of Fantasy MMO RPG's might be over, but hey, the time for online MMO's just has started!
Conclusion
If you want to be on the ride combine all four from above. Do a tablet/PC online persistent crowd funded free to play title.
Cheers, Teut
The major trends which we have seen in 2012 surfacing which will be even stronger in 2013 are:
Crowd Funding
It is an additional source for money. And as most people know in the gaming industry - money is the #1 problem of all developers. So this is an alternative. Not the best, but it is in addition to what we already have. And it also is able to fund games which are under the threshold of publishers - this means single man games, small teams, games with budgets of less then 1 million.
Of course there are the big million budget funded games - but those will be the "AAA" of kick starter. The important thing is not the money or that users decide which games are being made - the important thing is that the industry will see a new source of creativity from that funding. This impulse is desperately needed as otherwise CoD 10 and Fifa 2014 and Halo 5 and xyz 10 are all the same again and again.
Digital Distribution
It took long enough. We had hoped it will happen back in 2000 but the internet bubble bursting destroyed our master plan. Finally digital distribution has a break through and I expect this to quickly push into the console space as well.
There are more games being sold on digital platforms than on retail. Add it up. You will come to the same conclusion. Note I said "most" as in numbers, not in revenue. That will follow. Quickly.
What does this mean? It means retail becomes secondary, not the major platform anymore. The time as we went to stores to get games are over. Amazon does the rest of the death push of retail - but games will be a niche shelf space pretty soon. - if consoles push digital.
'Mobile' as major game space
I put mobile in quotes as studies shows that the main space people play mobile games is the couch or bed - so its not really "mobile". Still Smartphones and iPads will push the games market to bigger segments as even the console market. Even now the mobile market is the only one where western game makers have even access to all Asian markets. Note that consoles don't exist there and most western online games (the only one popular on PC) do not have a single chance of being published there. But hey, now even Asian's play single player games - but on mobile.
Why is Asia so important for mobile? Because it doubles, nearly triples the revenue potential of games on the devices with no major investment. This is huge. The Asian games market is so big that we (in the west) have not even a glimpse of its power.
So will mobile destroy consoles? I think it will push aside handheld gaming as we know it but AAA console games will stay - at least for the next generation. But as more and more developers find it easier to publish on mobile the creativity and cool games might move away from consoles to tablets.
Free to Play
F2p seems saturated 'they' say. I hear that often but always shake my head. F2p has just started and shows some saturation - but only in spaces where big companies are located and all their copy cats - as those copy cats don't know how to enter the f2p market but to copy the lead publishers - and of course fail ;)
Believe me: there are many game genres and types still to be published successfully as f2p as big as League of Legends or even World of Tanks. There is still plenty of space. Want proof? Which publisher would have accepted a Counterstrike type game with World War II tanks and persistent development? NO ONE!
Of course now they say "yes of course it works". But before? Nah, they wouldn't even have gotten an appointment.
So there is lots of space. The primary reason is being online: when you got the world internet population as potential customers it is easier to reach a critical mass to be profitable then in retail or any other publishing platform.
Online - Persistent
Games have shown that if they are online (even if only basic asynchronous) and persistent that the success doubles easily. The recent example of Clash of Clans and Hay Day shows that also on mobile it is a pre-requisite for huge success potential.
So the time of Fantasy MMO RPG's might be over, but hey, the time for online MMO's just has started!
Conclusion
If you want to be on the ride combine all four from above. Do a tablet/PC online persistent crowd funded free to play title.
Cheers, Teut
2013/01/04
Numbers - from end of 2012
8 Million
The number of Angry Birds downloads on Christmas eve December 24th
30 Million
The number of Angry Birds downloads between December 22nd and 29th
17.4 Million
The number of new Smartphone/Tablet devices activated during Christmas, up from 6.8 Million last year
50 Million
The number of new smart devices activated between December 25th and January 1st
328 Million
The number of total apps downloaded on Christmas eve.
1 Million
The average daily revenue of Supercell with only 2 games in the iOS Appstore
453.000
The number of Minecraft sold aross all platforms on a single day on December 24th (thats more than lifetime sales of most PC #1 hits)
5 Million
The number of Minecraft sold lifetime on XBLA
5 Million
The number of Minecraft sold on Smartphones/Tablets
627 Million
Last quarter revenue of DeNA with an operational profit of 254 million
30 Million
The number of active users in all Bandai games combined - only in Japan on social networks. This was "only" 10 million in January 2012, that is 3x more in just under a year - in Japan only.
Yes, the industry is changing. If you still believe the next 5 years will be similar to the PS3/XBox360 Generation then it is time to wake up.
Sources: Flurry, Notch, Rovio, Business Insider.
The number of Angry Birds downloads on Christmas eve December 24th
30 Million
The number of Angry Birds downloads between December 22nd and 29th
17.4 Million
The number of new Smartphone/Tablet devices activated during Christmas, up from 6.8 Million last year
50 Million
The number of new smart devices activated between December 25th and January 1st
328 Million
The number of total apps downloaded on Christmas eve.
1 Million
The average daily revenue of Supercell with only 2 games in the iOS Appstore
453.000
The number of Minecraft sold aross all platforms on a single day on December 24th (thats more than lifetime sales of most PC #1 hits)
5 Million
The number of Minecraft sold lifetime on XBLA
5 Million
The number of Minecraft sold on Smartphones/Tablets
627 Million
Last quarter revenue of DeNA with an operational profit of 254 million
30 Million
The number of active users in all Bandai games combined - only in Japan on social networks. This was "only" 10 million in January 2012, that is 3x more in just under a year - in Japan only.
Yes, the industry is changing. If you still believe the next 5 years will be similar to the PS3/XBox360 Generation then it is time to wake up.
Sources: Flurry, Notch, Rovio, Business Insider.
2012/12/30
My choices - person of the year
See below!!
All three have one thing in common: They changed the industry - worldwide. All three come from Scandinavia, in fact two from Finland. Ask yourself - WHY.
If you find the answer let me know. I wish to learn.
HAPPY NEW YEAR!!!
Cheers Teut
All three have one thing in common: They changed the industry - worldwide. All three come from Scandinavia, in fact two from Finland. Ask yourself - WHY.
If you find the answer let me know. I wish to learn.
HAPPY NEW YEAR!!!
Cheers Teut
2012/12/21
2012/11/11
Transition Years
If you read my blogs or listen to my talks you know that I held a talk 2001 where I described the 5 year cycle of the industry (PDF link, note: this cycle is longer)
Generally whenever the old console is aging and the new one isn't here yet several things happen:
Some explanation here: most console games are sold to owners who own the console for the 1st year. In other words console sales influence the next 12 months game sales volume. On the other hand: less console sales mean less software sales for that reason. Check current console sales history.
So this causes a dire news coverage and you might take the impression away that we are in deep trouble. In fact we are not - we are in the best state we will be in the next 5 years.
The reason is simple: during that time called 'transitions years' the games industry is most creative and usually comes up with some new toys to play with. In the past transision years we had things like 3d hardware, CD rom, DvD, the internet & team based games and MMO's to drive new categories.
This transition we got smartphone/tablet gaming, or going digital generally which allows even small developers to publish worldwide: basically this fixes the problem #3 above for the next transition years, If the developers are adapting.
Transition years usually cause trouble for publishers or developers who do not adapt or do not want to adapt. It happens all the time as some of those companies start to be comfortable what they do and so they lose the lead.
But listen, we are the gaming industry. We live from innovation, from change, from new technology, from new gadgets and devices or software concepts. If you start to stand still and feel comfortable or want to be, then you are in the wrong industry.
Change is good. And 2013 will be the biggest change for our industry we ever experienced. Exactly that is the reason why I love this industry.
Generally whenever the old console is aging and the new one isn't here yet several things happen:
- Publishers close or fire people
- Publishers take less risk and go conservative (sequels, less 3rd party development)
- Developers close down as they can't sell their pitches to publishers
- Magazines/Media closes as they are dependent on marketing spending
Some explanation here: most console games are sold to owners who own the console for the 1st year. In other words console sales influence the next 12 months game sales volume. On the other hand: less console sales mean less software sales for that reason. Check current console sales history.
So this causes a dire news coverage and you might take the impression away that we are in deep trouble. In fact we are not - we are in the best state we will be in the next 5 years.
The reason is simple: during that time called 'transitions years' the games industry is most creative and usually comes up with some new toys to play with. In the past transision years we had things like 3d hardware, CD rom, DvD, the internet & team based games and MMO's to drive new categories.
This transition we got smartphone/tablet gaming, or going digital generally which allows even small developers to publish worldwide: basically this fixes the problem #3 above for the next transition years, If the developers are adapting.
Transition years usually cause trouble for publishers or developers who do not adapt or do not want to adapt. It happens all the time as some of those companies start to be comfortable what they do and so they lose the lead.
But listen, we are the gaming industry. We live from innovation, from change, from new technology, from new gadgets and devices or software concepts. If you start to stand still and feel comfortable or want to be, then you are in the wrong industry.
Change is good. And 2013 will be the biggest change for our industry we ever experienced. Exactly that is the reason why I love this industry.
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