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SuperScale Report Uncovers Game Development’s Astonishing Mortality Rate – Most Companies Do Not Survive Past 3 Years

SuperScale Report Uncovers Game Development's Astonishing Mortality Rate – Most Companies Do Not Survive Past 3 Years

The Mortality rate of Mobile Games Revealed: SuperScale Report

A recent study conducted by SuperScale, the revenue growth engine for mobile games, has unveiled shocking findings about the high failure rate of mobile games development. The study, outlined in SuperScale’s Good Games Don’t Die white paper, shows that an astonishing 83% of launched games perish within three years, and 43% of games are abandoned during development. These statistics highlight significant issues within the contemporary mobile game development industry.

The Research Process and Disturbing Figures

The study involved interviews with 500 game developers in the UK and US, conducted by Atomik Research on behalf of SuperScale. Despite the alarming failure rate, the report reveals that 78% of mobile game developers still prefer to work on new titles, creating a challenging situation for the $96.2 billion international mobile games industry.

The research reflects broader trends in the gaming industry, including global recessionary pressures and a decline in investment throughout the sector. The report shows that 32% of developers had to lay off staff, and 25% came close to shutting down their businesses. These issues, combined with the high failure rate, impact both the financial and human aspects of mobile game development.

Unleashing Potential: Legacy Games

Despite the prevalence of failed games, the SuperScale white paper emphasizes the untapped potential of “good games” that have died in development or after launch. These “legacy games” are titles that no longer receive regular updates or investments. The study reveals that, on average, a mobile gaming portfolio contains 18 legacy games, which could still generate substantial revenue for developers and publishers.

In addition to these findings, the Good Games Don’t Die white paper explores various categories, including outsourcing, performance measurement, and monetization methods. These insights can help unlock the potential of so-called “died” games and provide a source of inspiration and actionable data for developers and publishers.

A Call for Change and Reflection

Ivan Trancik, CEO and Founder of SuperScale, believes that the industry needs to adapt to these volatile times. He highlights the challenges faced by mobile game developers, such as increased competition, macroeconomic conditions, and privacy policy changes like Apple’s App Tracking Transparency (ATT). Trancik states that the study serves as a wake-up call for the industry, urging developers and publishers to maximize revenue across their portfolios and breathe new life into existing games.

Trancik emphasizes the importance of recognizing the passion and creativity behind game development and encourages the industry to reevaluate the potential of previously created gaming content.

For more insights from Ivan Trancik and the SuperScale team, sign up for their deep-dive session on fixing underperforming mobile games.

Key Findings from the SuperScale Report:

  • Recession in Gaming: 32% of studios have experienced layoffs in the past year, and 40% have outsourced development tasks. Collectible card games and hypercasual developers were most affected.
  • Monetizing Mobile Games: 62% of developers use LiveOps in their most profitable titles, and 37% update their successful games weekly.
  • Game Failure and Success: 43% of games in development are abandoned before launch, and 83% of mobile games die within three years.
  • Passion versus Profit: 78% of developers prefer working on new titles, but 30% believe focusing on legacy games is the way forward. Industry uncertainty, market difficulty, and intense competition are major concerns.

mobile games, game development, SuperScale, failure rate, legacy games, revenue, industry trends, monetization, success, competition