Study Reveals Alarming Failure Rate of Mobile Games
A recent study conducted by SuperScale, a mobile revenue growth engine, has uncovered that a staggering 83% of mobile games fail to achieve long-term success within three years of their launch. Furthermore, the research found that 43% of games are canceled during the development phase. The study, titled 'Good Games Don't Die' and carried out by Atomik Research, is based on interviews with 500 game developers in the UK and US. The findings show that 76% of launched games reach their peak revenue within the first year, but only a mere 4% achieve this milestone during the second year. Additionally, despite the widespread use of live operations in games, 38% of developers do not release regular updates, and less than half provide monthly updates, resulting in only 5% of games receiving support seven years after launch. Interestingly, 78% of developers prefer working on new titles, yet over a third of respondents expressed that uncertainty in the industry is deterring them from developing new games, with 30% feeling that the current market is too challenging to succeed in. This sentiment is reflected in the fact that two-thirds of studios have had to downsize, conduct layoffs, or cut budgets, with 29% of developers reducing their user acquisition budget. According to SuperScale's CEO and founder, Ivan Trancik, 'These are turbulent times for the games industry, with many mobile game developers struggling to maintain profitability amidst challenges such as ATT, intense competition in a mature market, and macroeconomic conditions like high inflation.' He further emphasized that the study's findings serve as a catalyst for the industry, providing actionable data and insights that can help developers and publishers maximize revenue across their portfolio, including both new and existing games.