draw something Archives ⋆ Mobile Commerce Press

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Mobile games see turbulence in revenue generation

BWild | June 12, 2013

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.

Consumer 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.

Zynga pins hope on mobile games

BWild | June 3, 2013

Mobile games may determine the fate of Zynga

Troubles game developer Zynga has been working to restructure itself recently. The company has struggled to find some stable ground after losing the faith of Facebook, which had once been its primary distribution platform. Zynga has set its sights on mobile games, believing that the mobile space will provid ethe company with the momentum it needs to reclaim the favor of consumers throughout the gaming market. Zynga has yet to find this momentum, however, as it has not yet produced a successful mobile game.

Company reporting drop in revenue and daily active users

Zynga has reported an 18% drop in revenue in the latest quarter of this year. The company’s financial troubles have continued for several consecutive quarters. Zynga’s financial problems are being exacerbated by the falling number of consumers that are playing the company’s games. Zynga has reported that the number of daily active users has dropped by 21% in the latest quarter. The company believes that mobile games can turn its fortunes, but whether or not the company can perform well in the mobile space has yet to be seen.

Zynga aims for success with sequel to Draw Something

Zynga is placing much of its hope for the future on a new game it is planning to release in the near future. This game is a sequel to the highly acclaimed Draw Something, which was originally developed by Omgpop. Zynga spent $180 million to purchase the rights to Draw Something in March of 2012, but consumers quickly lost interest in the game once they heard that Zynga had become involved. Draw Something had been one of the most popular mobile games of its time and Zynga believes that consumers will respond well to a genuine sequel to the title.

Mobile games have trouble holding consumer attention

Consumers tend to lose interest in mobile games rather quickly, due to the nature of these games. Mobile games are not typically designed with any significant level of depth, thus making the entertainment they offer to consumers somewhat limited. Those with short attention spans typically move on to new mobile games quickly, even if their experience with a particular game had been favorable.