I’ve been saying this for the last year or so about the Turkish hyper-casual market. Major publishers are gradually losing interest in renewing their contracts with hyper-casual studios.
Younger studios may have a had time finding new publishers to cover their costs because not every publisher is that keen about working on a model that’s based on prototypes. Most of these studios don’t even have a published game yet.
The global economy is heading toward a recession and it will be harder now to find an investor. Most, if not all, will want to keep their cash and wait out the next two years.
Apple’s new IDFA opt-in rules and the ever-increasing competitive nature of the mobile games industry increased the marketing budgets and affected the profitability of this business. This may as well affect the decision-making process of the publishers.
Winter may come earlier than expected. There’re things to do and actions to take:
- Studios need to reconsider their prototype-based incomes and manage their in-studio costs more efficiently.
- If possible, switch to a self-publishing business model.
- Plan for the long term and look for seed funding.
Precautions such as the above must be taken or else most studios will have a hard time keeping themselves alive in the near future.
Possible ouıtcomes:
- Studios may downsize.
- Sibling Studios may merge together.
- Founders seeking funds to raise new funds.
- Earn more from existing projects and manage gain/loss rate.
- Alternative business models and developing games for other platforms.
Studios with canceled contracts or soon-to-be canceled ones need to reconsider their strategies. It’s not for certain, of course, but the next offer that’s on the table probably won’t be as high as your last one. We’ll see how important business strategies are just as important as developing games.
Follow Mobidictum and stay informed on what’s coming next and what opportunities may pop up soon. Don’t miss our Istanbul Conference (5-6 September), the partner you’re looking for to help you survive this “winter” may be waiting for you at MBC.
I wish you all success and good luck.
