Unlocking Game Success in 2025: The Power of Data-Driven Decision Making

Evgeniy Kurenkov, founder and CEO of Magify, an analytics and live-ops platform for game studios, sheds light on the crucial role of data in modern game development. A glance at the top free-to-play games reveals they are predominantly developed by well-established studios with substantial marketing budgets and refined user acquisition systems. Emerging studios are noticeably absent from this list, and while rising user acquisition costs and limited access to scalable business intelligence tools are often cited as barriers, Kurenkov argues that the true obstacle lies in the lack of understanding of game economics and forecasting models. The gaming market is characterized by uneven competition, with larger studios continually increasing their user acquisition budgets, leaving smaller studios struggling to keep pace. However, the core issue is not the lack of funding but rather the inability of smaller studios to grasp and manage the factors within their control, such as game economics and data analysis. In today's data-driven gaming industry, success hinges on the ability to extract valuable insights from data and leverage them to inform decision-making. Even experienced teams often face challenges in resource allocation due to the absence of a robust analytics platform or the use of outdated systems that fail to meet the evolving standards in analytics and live operations. Modern free-to-play game development is deeply rooted in metrics and the optimization of user lifetime value. The balance between customer acquisition cost (CAC) and customer lifetime value (LTV) is paramount in the mobile gaming economy. Achieving this balance necessitates the use of good data, advanced analytics, and effective live-ops tools. Every stage of game development must be supported by A/B testing and data analysis to avoid squandering budgets on uninformed decisions. Without data, decision-making becomes speculative. The industry standard now emphasizes the importance of forecasting models and data-driven approaches in game development, particularly for mass user acquisition and player retention. A successful studio in 2025 is not merely a content creator but a sophisticated systems operator, with success dependent on personalization, hypothesis testing, monetization strategy, and thoughtful live-ops planning. The integration of analytics and live ops is crucial, as separate operations can lead to a lack of end-to-end tracking, making it challenging to determine which in-game events and offers drive retention, conversion, and revenue. While building a bespoke BI system is possible, it requires significant expertise and time, and the emerging trend of automating live ops with machine learning and AI demands a distinct tech stack and talent that many smaller studios lack. It's also worth noting that internal BI solutions rarely contribute to a company's valuation as expected, especially in acquisition scenarios where the acquirer typically uses its own BI system post-purchase, rendering the acquired company's internal solution less valuable. Fortunately, the software-as-a-service ecosystem has matured, offering high-quality analytics, attribution, and live-ops tools. The trend is unmistakable: the industry is moving towards long-term, data-driven product management, with return on ad spend (ROAS) as the guiding star. Understanding the performance of traffic, rather than just its cost, is critical, as data maturity has a direct impact on profit margins. A key example can be seen in the app stores, where games with nearly identical features can have vastly different user acquisition numbers, with some attracting millions of new users monthly while others plateau at less than 100,000 installs. The difference often lies in how effectively studios personalize gameplay experiences and monetize through segmentation and remote configurations. These are controllable factors that can make a game appealing to a broad audience and enable direct player engagement. Successful studios leverage these tools to their advantage, while others miss the opportunity, underlining the importance of embracing a data-driven approach in game development to achieve success in 2025 and beyond.