Hatch: "We offer premium games a new way of monetization"

At the end of 2016, Hatch, a startup, was separated from Rovio into a separate company. He is developing a gaming Netflix for mobile devices. We talked about what exactly the service will be like with its co-founder Vesa Jutila.

This material is published as part of the “Finnish Gaming Industry” cycle. Its launch is timed to Finish Game Day 2017, an event about the Finnish gaming industry. The event will take place on June 13. It is part of the conference White Nights Conference St.Petersburg 2017, which starts a day later, on June 14.

The announcement of Hatch at the end of last year was a big surprise. Can you tell me in detail what kind of service you are doing?

Vesa Yutila, co-founder of Hatch Vesa Yutila, co–founder of Hatch: Hatch is a mobile platform where you can play and share games and videos from them.

It’s kind of like Netflix with a collection of games “on demand”, but it’s also a place where you can share the best gaming moments or play online with your friends.

What prompted you to create it?

Weights: Before video games were just games, which were almost always inherently social–something you did with other people. We wanted to create a space on mobile that would bring sociality back to games for real.

Hatch was originally created within the walls of Rovio. But then they decided to bring the service to a separate company. Why?

Weights: As soon as Hatch technology was created and its business model became clear, we also realized that it should be a company separate from Rovio, which should have a different profile asset. Also, since Hatch works with dozens of different studios and publishers, helping them to transfer games to the platform, it is important that Hatch be an independent company.

The appearance of the platform fits into the modern trend of building ecosystems on top of existing application stores and operating systems. Do you agree? What do you think this trend is connected with in general and what can it lead to?

Weights: In general, yes, many private companies are trying to create not just a new business, but completely new value chains and ecosystems. This is logical. But in our case, we consider app stores as our most important partners, as well as our distribution channels.

Together with the development of our ecosystem, we are interested in being an example of an excellent user solution for the next generation of cloud infrastructures.

Previously, attempts have been made to create cloud platforms for the distribution of games on the gaming market more than once. For example, everyone still remembers OnLive and Gaikai. What prevented them from succeeding and thanks to what will you shoot?

Weights: I think these were great ideas that were ahead of their time. Technologies have now received the necessary opportunities for their implementation.

As for us, the business model of a subscription service that allows you to play games “on demand” is still relevant.

Will the App Store and Google Play consider that you are taking on their role as a distributor, how will they react to this?

Weights: I can’t speak for them.

I believe that we are as much competitors to app stores as Netflix is to iTunes.

How will the work within the ecosystem be built?

Weights: From the end user’s point of view, the Hatch app can be downloaded from the app stores. In the application itself, the user will scroll through a real-time feed of friends’ posts and choose from a dozen games presented to the platform by more than 60 studios and publishers.

What projects are you planning to publish on the platform?

Weights: Contracts have already been signed for the publication of 150 games. We have already announced the appearance of Monument Valley, Pac-Man, Leo’s Fortune, Rayman Fiesta Run and Broken Age – high-quality, full-fledged premium games without microtransactions and IAP.

What will the developer get from working with you, why would he get to another site?

Weights: Since we are creating a collection of games on Hatch, the reaction from the developer community has been very positive. We offer premium games a new way of monetization, a different source of income, a way to reach a new audience that otherwise would not have paid for the project in any way.

You announced that you plan to make money from advertising. What will this advertisement look like, won’t it create a negative experience from interacting with games?

Weights: We have natively implemented advertising and brand storytelling [a type of comprehensive brand promotion through stories about the brand and about the company’s values; the task of the story is to emotionally engage the consumer, – approx.editors] in the gameplay and adjust it to users, so that advertising is relevant to us.

Plus, advertising does not occur directly during the game session. You see ads when you scroll through your friends’ collection and feeds, as well as when you choose a game.

At first, while there will be few products on the platform, there will be no problems with findability, but with the growth of the library, it will definitely arise. How do you plan to solve it?

Weights: We don’t compete with app stores where millions of games are available. Hatch is a content service that offers a compact and curated game collection, as well as additional social functionality that is not available anywhere else. This is done so that players can get a great experience, and so that our partners can earn.

One of the important features of Hatch is the ability to share game videos. How does this tool work?

Weights: It’s very simple. Hatch constantly shoots the last 30 seconds of gameplay. Therefore, at any time you can pause the game, go to the video editor, select the desired area within 30 seconds, add text or effects. When you’re done with creating your own little movie, you can post it to the Hatch feed or another social network, where your friends can comment, like and share the excerpt.

Will streamers be able to make money on Hatch?

Weights: Gameplay moments that are rummaged on Hatch, compared to YouTube… It’s like Twitter compared to LiveJournal – a small, bit format. What our users are going to do with it depends on them.

Will there be an opportunity for developers to somehow promote the game within Hatch?

Weights: The collection of games in Hatch is quite compact. Every game in it is easy to find. Users will see content similar to the games they have played themselves and played by friends. They will also be able to choose genres, see which games are trending now, and so on.

When will the release take place?

Weights: Now the platform is in a closed, invitation-only beta. Given the current figures, it seems quite reasonable to expect a commercial release in the second half of this year.

You will be able to personally talk to Vesa Yutila at Finish Game Day 2017. The editorial board thanks Oleg Paliy for his help in organizing the interview.