Games & Names #9 - 2023 Wrapped!

Stan’s Dispatch ??

Hey there, Digital Quirites! Stan is here, wrapping up the year with a jolly jingle and the final issue of 2023's cozy-yet-insightful newsletter. As the holiday lights twinkle, we're diving into the year's biggest trends, insightful breakthroughs, and game-changing moments with Anton Gorodetsky and Dmitriy Byshonkov . We had a wonderful, warm talk, so don't miss it!

Also, check out the Royal Match Live-Ops analysis by Mert C. Meral . Brand-new mechanics in 'Magic Cauldron' event can help to boost player engagement and take your Live-Ops to the next level.

2023 was a turbulent year, to say at least. So, as you settle by the fire or dazzle in the festive lights, let's raise a glass to the year that awaits. Hopefully, more moderate, predictable, and happy. With fewer layoffs, company shutdowns, and big sad news. May your holidays be as merry as a winning streak, and your New Year as promising as a new game launch. Cheers to new beginnings and endless fun! ????

Mobile Apps Market Tidbits ??

Since this is the last issue of 2023, I think it’s time to do what we all like so much - recap the past year and outline expectations for the new one! So, here it goes ??

2023: drastic industry decline or logical market correction?

The gaming industry in 2023 continued to navigate the challenges left by COVID-19. It faced a notable decline, characterized by layoffs and a shrinking market, as it struggled to find stability after a period of rapid expansion.

However, some experts say that this downturn is not just a problem, but also a necessary adjustment. It reflects a market correction essential for realigning with sustainable market needs and demands. As the industry transforms, it's moving from rapid growth to a more mature phase, marked by strategic leadership and a focus on sustainable development. This transition is crucial for the long-term health and innovation of the gaming sector.

Investors played smart, not hard

In 2023 gaming landscape, securing investment became tougher than in 2020 or 2021. The days when a strong pitch deck alone could attract funding are over, particularly for new studios without a proven track record. They now need to show concrete metrics and results. For established studios, a history of successful collaboration and notable achievements is essential. Taught by their mistakes, investors became more discerning, especially those new to the gaming sector!

The focus has shifted towards PC and console games, with developers aiming to carve out unique niches or create innovative content to compete with well-established, content-rich games.

Although the investment landscape has cooled down, with a notable decrease in public offerings and gaming SPACs, private investments and M&As are still ongoing, supported by experienced and patient investors.

The rise of the Hybridcasual hypewave

This year, many large studios announced transitioning from hypercasual to a hybrid casual model, blending simple one-tap mechanics of hypercasual games with the more involved meta-elements of casual games. Initially, hypercasual games were a niche, known for their simplicity, low cost of production, and low Cost Per Install (CPI).

However, over time, they evolved, lacking complex graphics, advanced audio, or deep game loops, gradually resembling casual titles. So now studios like Voodoo, SayGames, or HOMA have changed their strategy to create more complex and 'casual' like games. How does this transition go? We had a big episode with Thibault de Vésinne-Larüe from Voodoo on how they’re making $100M in this nearly-born niche.

This shift also poses challenges for smaller studios and independent developers. While hypercasual games were once lucrative for small teams due to their unique game design and minimal production requirements, competing with larger studios in terms of production quality is increasingly difficult. So, keep the focus on the blue ocean strategy and the high quality of the new games!

Hybridization of monetisation model

The gaming industry started shifting from separate monetization models to a hybrid approach. Traditionally, hypercasual games relied on in-app advertising (iAA), while mid-core and casual games mostly used in-app purchases (iAP). Now, there's a trend toward combining these strategies. Hypercasual games are introducing iAPs, and games that focused on iAPs are adding advertising elements like rewarded videos.

This hybrid model is constantly proving its effectiveness , offering a more versatile revenue stream and adapting to various player preferences. For example, War Robots, initially iAP-focused, successfully integrated a 'rewarded video' ad, significantly boosting its revenue.

What 2024 will bring?

The gaming industry, after pandemic-related delays and a surge in releases, is expected to hit a plateau in 2024 with fewer new games. Console titles lead the market in 2023, but mobile and cross-platform games are set to become more prominent. Investment and user acquisition are also likely to improve.

AI technology is increasingly important in game development, streamlining studio operations and excelling in simpler, 2D tasks. Its use in complex 3D game production is still evolving, but it holds promise for smaller studios to develop big titles more efficiently and cost-effectively.

G&N Ep.8 - 2023 Recap ??

In our Christmas/NY special, we're diving into the year's biggest trends, insightful breakthroughs, and game-changing moments with Anton Gorodetsky and Dmitriy Byshonkov . We had a wonderful, warm talk, so don't miss it

In this episode we’ve talked about:

• what are the main trends of 2023;
• why the mobile game industry decline continues;
• the terrifying success rate of casual games - less than 0,5%! - and what it means for investors;
• industry layoffs, the obvious elephant in the room, and how to treat it;
• the main takeaways, both for developers and investors.

We also share a bunch of game recommendations with fresh releases of this year!

Author's Vertical ???

Today Mert C. Meral dropped by to share a detailed analysis of Royal Match recent addition to live ops, 'Magic Cauldron'. Mert, the mic is yours!

Thx, Stan, glad to share some knowledge! A month ago, Royal Match introduced a brand-new, unique live-ops event, Magic Cauldron. We are trying to guess the correct sequence of the elixirs to produce the prize in the book. Initially, we have five elixirs to guess from. After making our first attempt, we can identify the correct and incorrect colors. The incorrect ones leave a mark on the wall with the same color. Moving on to the next step, we start with one location filled with the correct color.

If you're getting a déjà vu, you're absolutely right! Magic Cauldron shares some rules with Wordle , such as both games are feedback-driven, marking the correct color and indicating the incorrect placements.

The event consists of 15 stages. Three colors are used for the first three stages, and a new color is introduced every three. Each shelf means a new try, a new sequence of probability. The probability of guessing the correct order is getting harder when new colors are added.

We don’t have to try every sequence though; thanks to being a feedback-driven game, correct and incorrect placements reduce the count of probabilities and the difficulty. After I finished the game, I also watched plays by other people on YouTube, I noted all attempt counts for every stage, and here are the mean attempt counts.

To complete the event, we must collect around ~210 elixirs, which we can obtain from winning different levels. We receive five elixirs after completing super hard levels, three from hard levels and one from normal levels. Additionally, we earn 16 elixirs after every ten levels. We need to beat approximately 130 levels to gather the required elixirs, which means we will grind around for a while. :)

Check out the whole version of the article in the author's blog and don't forget to share your thoughts on the content!

Reading recommendations ??

I couldn’t leave you without some reading recommendations on your plane back home/near the fireplace/while waiting for a holiday special to be ready (highlight the right one):

1. Kakao crosses the $4B threshold in user spending - AppMagic’s team did some digging and outlined which apps are leading the growth, why and what might come next.
2. Google’s Epic defeat could upend Android’s games ecosystem - what Epic’s victory over Google is signalling and how it’s going to change economics of Android games.
3. GamingonPhone’s Year in Review 2023 - if you missed any big industry trends, news, new releases or just want to refresh your memory, this article will be your guide.

Smarter every day ??

Don't forget to catch up with 'Games & Names' newest episodes:

• Apple Podcasts
• Spotify
• YouTube

In an informal 'friday-dinner-with-friends' atmosphere, we chat with industry experts and share actionable insights. Game design, UA marketing, narrative, production, running a company, or creating one – our topics are wide and broad, just as our smiles. So grab a cup of tea or coffee, tune in, and spend an hour with us!

Acknowledgments and farewells ??

Many thanks to you, dear reader, for staying with me until this part - I hope it was worth your time! :)

• Anton Gorodetsky , Head of Industry Relations at MY.GAMES & Co-Founder of InvestGame
• Dmitriy Byshonkov , Senior Business Development at MY.GAMES
• Mert C. Meral , UI/UX and Behavioral Designer
• Diana Levintova , PR & Partnership Manager at AppMagic

One more thing! ??

With that being said, I’m wrapping up! It’s time to turn off my laptop and pop open some bubbly. Happy holidays to you all, and see you in the 2024 season ?