Playtika Puts Game Launches and Development on Hold Amid Market Challenges

Playtika has put a temporary halt on the development of new games and will not be releasing any new titles in the near future. This strategic shift was revealed alongside the company's Q4 financial results, as reported by MobileGamer.biz, and is attributed to the challenges faced in the mobile marketing landscape. According to President and CFO Craig Abrahams, the development of new games will be suspended until it becomes economically viable in terms of return on investment. Although Playtika-owned Wooga will continue to assess new games, no new launches are planned. Abrahams noted that games released in 2022 showed promising retention and monetization metrics, but the current marketing environment and rising installation costs have made it difficult for the company to grow these titles profitably. The significant increase in cost per install has disrupted the return on investment calculations, making it unwise for the company to invest heavily in new game development at this time. Instead, Playtika will focus on investing in 'high growth potential studios,' such as Ace Games, the developer of Fiona's Farm, in which the company invested $25 million in November. The publisher will also concentrate its marketing efforts on higher-quality traffic sources and ROI-driven initiatives, leveraging its scale and AI technology. Following a series of layoffs in 2022, including nearly 1,000 staff members, Playtika is adapting its strategy to navigate the current market conditions. Earlier this year, the company made an offer to acquire Rovio, the developer of Angry Birds.