Tag: angry birds

Square Enix to embrace mobile games

Square Enix to move away from traditional games toward mobile games

Japanese game publisher and developer Square Enix has been a powerful name in the game industry for several years. The company is responsible for some of the most beloved franchises in the industry, but has recently begun to struggle with its most recent titles and endeavors. This is largely due to the fact that gaming is changing, as are the gamers. As older gamers give way to a new generation, Square Enix is finding that more people are inclined to play games on their mobile devices. In an effort to retain its place in the game industry, Square Enix has begun to set its sights on mobile games.

A new generation spurs a new focus for the developer

The developer has announced that it will be transitioning away from the big-budget games that had made it famous in the past. While Square Enix will not be abandoning its efforts to make such games, much of the company’s focus will be attributed to mobile games. This new focus will not only affect the company’s publishing initiatives but also the development aspect.

Mobile Games - Square EnixMobile games may help Square Enix connect with a new generation of gamers

The company has high hopes for mobile games, largely due to the popularity of these games with consumers. The success that mobile games represent is most evident among independent developers. Games like Angry Birds and Temple Run have become unexpected phenomena in the game industry and both of these games have proven to be strong revenue streams for their developers. Square Enix believes that mobile games can help it overcome the failures of its past and make it a more recognizable name with a new generation of gamers.

Company likely to face many challenges

Mobile games are popular, but there are many challenges that exist in moving away from traditional, big-budget projects. The first involves the relatively low attention span that consumers have when it comes to mobile games. Another challenge is represented by the fact that mobile games must often include micro-transactions in order to generate a profit, a practice that is somewhat controversial among gamers.

Mobile games see turbulence in revenue generation

Developers looking to find ways to get people engaged in mobile games

Mobile games have become one of the most potentially lucrative sectors of the game industry, largely due to the sheer number of consumers that have mobile devices. While these games have proven quite popular with consumers, they are not a guaranteed gold mine. In order for mobile games to generate any significant amount of revenue, they must tackle a very difficult challenge involving consumer engagement. Consumers have a very short attention span when it comes to mobile applications and will move on to a new application very quickly. This has lead many developers to seek out new ways to ensure that their mobile games remain engaging.

Supply outweighs demand

The number of mobile games has increased dramatically since 2007. This means that there is no shortage of options when consumers are looking for new games to play. Because there is no shortage, consumers can easily go from game to game without having to spend any significant amount of time on a single application. While this may be good for consumers, this is somewhat problematic for developers, as low engagement times mean less revenue produced by a particular game.

Mobile Games - revenue and consumersConsumer engagement proves to be a tricky issue

Finding ways to keep consumers engaged has not been an easy task. Thus far, the mobile games that have been able to accomplish this task have been those with strong social elements, such as Draw Something and Words With Friends. Some developers have taken to developing highly addicting games with attractive features, following the example of Angry Birds. No developer has yet found an effective way to ensure that a mobile game produces a high level of revenue, however.

Finding ways to generate revenue continues to be a strong focus for the game industry

Angry Birds developer Rovio notes that 45% of its revenue comes from merchandise and mobile games themselves only account for 9% of the revenue for the entire game industry. Smaller developers do not typically have the funds needed to produce merchandise, and thus must find effective ways to enthrall the attention o consumers that have limited interest in devoting themselves to a single game or entertainment application.