In the mobile game development industry, a recent study by SuperScale sheds light on a reality. The data, presented in the “Good Games Don’t Die” white paper, discloses that 83% of launched games meet their demise within three years. Even more concerning is that 43% of games face termination during development, never making it to launch—a stark reflection of the challenges prevalent in contemporary mobile game development.
Based on interviews with 500 game developers in the UK and US, conducted by Atomik Research for SuperScale, the report reveals a critical high failure rate that poses a dilemma for the $96.2 billion international mobile games industry. Despite this, 78% of mobile game developers express a preference for working on new titles, creating a paradoxical situation.
Beyond the financial impact, the report delves into the human toll of the mobile game failure rate. Loss of motivation, risk aversion, and heightened commercial focus are observed trends. For junior developers with less than one year of experience, creative unfulfillment resulting from game cancellations was reported by 30%.
Given the endemic high failure rate in mobile gaming, the SuperScale white paper explores the untapped opportunities present in the ‘good games’ that died either in development or since launch. These ‘legacy games’ are titles that no longer receive regular UA investments or live-op updates, or those that are declining in revenue. Based on the study data, a mobile gaming portfolio features an average of 18 legacy games, and these could hold significant further commercial potential for developers and publishers. Across its 18 pages, the Good Games Don’t Die white paper unveils current trends in additional categories such as outsourcing, performance measurement, and monetization methods, which can be utilised to unlock the potential of good games which ‘died’.
“These are volatile times for the games industry. Many mobile game developers are finding it hard to remain profitable in the face of challenges such as ATT, heavy competition in a mature mobile market, and macroeconomic conditions like high inflation. 83% of games are flat-lining in the first three years is an eye-opening statistic, which indicates a new mindset is needed within the industry. Findings from the ‘Good Games Don’t Die’ white paper serve as a wake-up call for the industry, a source of inspiration with actionable data; equipping developers and publishers with insight on how revenue can be maximised across their portfolio – for games both new and old,” Ivan Trancik, CEO and founder, SuperScale, said.
Furthermore, the impact of a recession is evident as 32% of studios have undergone layoffs in the past year. Another 40% of studios opted to outsource development tasks during the same period, with collectible card games and hyper casual developers experiencing the most significant effects. Surprisingly, only 32% of studios managed to navigate the challenges without resorting to layoffs, downsizing, or closure.
Monetizing mobile games has become a key strategy, with 62% of developers incorporating LiveOps in their most profitable titles. Additionally, 37% of studios are actively updating their top-performing titles on a weekly basis, while less than half are opting for monthly updates.
When it comes to game development, 43% of games facing termination before they even launch. On a brighter note, 76% of launched games reach their peak revenue within the first year. However, the longevity of mobile games is limited, as 83% face extinction within three years, with a mere 5% receiving support beyond the seven-year mark.
The tension between passion and profit is palpable, with 78% of developers expressing a preference for working on new titles. Conversely, 30% believe that focusing on legacy games is a viable strategy in the current industry climate. Industry uncertainty poses a significant obstacle for 37% of respondents, hindering them from venturing into new game development. Another 30% attribute the difficulty to succeed in the current market conditions, while an additional 30% feel their niche is too competitive.