Gameloft refocuses business model on advertising and casual games
The French mobile publisher Gameloft is gradually changing the business development model. The growth of revenue from the sale of titles is slowing down, so the company’s interests have focused on increasing revenue from the advertising segment and producing more casual titles.
This trend can be clearly seen in the company’s 2017 report data. Gameloft’s revenues from gaming sales last year increased by only €1 million (up to €258 million) compared to 2016, but the company earned 93% more on advertising sales than a year earlier.
Gameloft Advertising Solutions’ own advertising network was launched in early 2015, and in the first year of its existence, its indicators increased by 800%, and the client audience grew by 250%.
Nevertheless, the bulk of the company’s revenue is still generated by gaming sales. In 2017, advertising accounted for only 14.1% of Gameloft’s revenue.
The second strategic direction of the company’s development is to increase gaming sales in stores.
Alexander de Rochefort, Gameloft’s CFO and vice president, confirmed the change in the course of the company’s business strategy in an interview with Pocket Gamer.
He announced Gameloft’s intention to release more simple and affordable games for a wide audience, and devote less time to the production of high-budget titles with advanced graphics.
“Gamers don’t expect the same graphics quality from mobile games as on modern consoles, so we are changing our publishing strategy in favor of casual titles,” Rochefort explained.
In addition, Gameloft intends to focus on the quality of published games. In this regard, 4-5 new releases are planned for 2018, whereas last year there were 10.
Also on the topic:
