If you were still not convinced that mobile gaming is where everyone is making all the money …
Supercell Pulls in US$ 2,443,835 A DAY on MOBILE GAMING
HELSINKI—Supercell Oy, the Finnish creator of Hay Day and Clash of Clans, notched a nearly ninefold revenue increase in 2013, providing a steppingstone for Chief Executive Ilkka Paananen ‘s plan to create mobile games with the same cachet as Coca-Cola or Nintendo.
The three-year-old company reported earnings of $464 million on $892 million in revenue last year, compared with earnings of $51 million on $101 million in revenue in 2012. Supercell also said Wednesday it will launch a third title—Beach Boom—in March.
The company is majority owned by Japan’s SoftBank Corp., which paid $1.5 billion in October for a 51% stake. Supercell’s two games are given away on Apple AAPL Inc.’s iOS software and Google Inc.’s Android, and are generally among the best performers in Western markets.
Supercell is at the forefront of the so called free-to-play movement and sales growth has far outpaced Rovio. Hay Day and Clash of Clans are free to download on smartphones and tablets, but players must pay if they want to take advantage of virtual goodies, which help to speed up the pace of the game.
Beach Boom, which has been popular in the two markets Supercell has tested it in, will follow this formula.
"The hard part is building a really, really fun game," Mr. Paananen said, pointing to longevity is proof his model is working. "Many people have been playing Clash of Clans for 1½ years, and still play it nine times a day."
Those who opt to purchase in-game extras often pay large sums. Players have been known to cough up thousands of dollars a year, motivated by the promise of using virtual currency to climb up the game’s scoring charts.
"Many of these people come from wealthy backgrounds, and work as lawyers or investment bankers. And it turns out it’s a hobby for them, like golf. Quite literally that’s how these guys explain their spending," Mr. Paananen said.
While the company remains small, its staff nearly doubled in 2013. "It’s incredible that you can achieve these kind of results while still being a small company," he said.
Mr. Paananen has big ambitions, however. Earlier this week, he posted a message to his Twitter account referring to the company’s recent Super Bowl ad, and noted Supercell is hiring in its marketing department.
"We want to evolve our incredibly successful mobile games and build them into brands at the level of Nintendo or Pixar and Nike or Coca-Cola," the job description, posted on Supercell’s website, said.
"An astounding 10+ million people play Supercell’s games, Clash of Clans and Hay Day, every day (and growing). That doesn’t make them "brands" though, and certainly not the world-clash brands they ought to be."
I quit my AM shit. Building Games now. brb.
$100 million in their first year. Da fark?
Who votes for a sub-forum dedicated to app / game dev?
i.e Resources, Outsourcing, Doing It Yourself, Brainstorming Ideas, Feasibility Case Studies, Follow Alongs, Marketing Plan, etc..
Would be awesome.
The stuff that these guys do and track and optimise will blow your brains away.
I’ve visited the offices of these games guys to see if we could share some lessons on multivariate testing and conversion optimisation.
I tend to hire the top 1% of maths, statistics and econometrics graduates from the top universities for my team and I thought we were pretty strong … but these games guys made us look like a bunch of amateurs.
earnings of $464 million on $892 million in revenue last year
Pretty decent roi then.
Damn I could only imagine… Any examples you could share?
@andy you have 2 wishes left.
Weird.. they got hacked today too..
$5.15m in In App Purchases (not including advertising, which is reportedly similar in rev)
That’s crazy revenue! Read this on their site…
While games are certainly big business, we’ve found the best way to get big is by being small. Small teams, that is. Need proof? Clash of Clans and Hay Day were created by teams of only half a dozen developers each. There’s no clumsy hierarchy or bureaucracy here, just exceptionally talented [super nice] people with absolute freedom to pursue their creative vision.
that’d be class but what percantage of people here can actually code an app? still, you can outsource a lot.
the money some guys over on https://forums.makingmoneywithandroid.com/ are making is ridicilous.
this guy made $41k in one day by spamming apps:
other good stories in the income reports forum
btw interesting article about supercell ceo here:
That is some seriously rude earnings
Dayum… this is a whole new ball game. There’s even some guides they’re promoting.
Wow, that forum is a real eye opener.
Some guy saying he got offered 3bn for his app by facebook.
pretty awesome stuff. I’ve played the game more than I care to admit and their funnel throughout the lifetime of the user is ON POINT. that game economy is extremely well balanced. only iphone game that actually got me to open my wallet.
Without going into specifics, the funnel management, optimisation, and behavioural data mining these guys do is just incredible.
Basically they are seeking to reverse engineer specific emotions in every player, by identifying every potential driver of various emotional states for each type of game situation.
Imagine the most complex Markov chain you have ever seen and then multiply it by a factor of 100 and this still does not begin approach the dataset that they are working with.
If you though that you exercised free will while playing these games, you should think again. The fact that people actually spend money in this game is no accident. They were pretty much programmed to do so.
This is pretty crazy. SO many hidden ways these days to make money
For anyone who wants to get up to speed on what the mobile games/app economy looks like, this is a great place to start:
This is not just "building an app". You need to test every day, segment users and prepare a well-tailored offers. For example we are able to segment every user after first two or three sessions and put him in a basket based on his behaviour – spender, whale, socializer, etc. Then he gets offer tailored for him. And we are far away from 5M a day. This is not just "making apps" business, this is next level of analytics, game design and behavioral psychology.
@cmdeal: thanks for the thread, very thought provoking indeed!