83% of launched mobile games face the three-year challenge

A recent report from SuperScale, a mobile revenue growth engine, sheds light on the challenges and trends in the mobile gaming industry. The “Good Games Don’t Die” report, based on interviews with 500 game developers in the UK and US, reveals significant insights into the dynamics of mobile game development: 

The study indicates that 83% of launched mobile games fail within three years, while 43% face cancellation during development. This highlights the competitive and challenging landscape in the mobile gaming market.

The report notes that 76% of launched games reach peak revenue within the first year. However, only 4% attained this peak in the second year, emphasizing the importance of early success for sustained profitability.

While over half of developers incorporate live ops (live operations) in their games for ongoing engagement, 38% do not release regular content or updates. Less than half of the developers provide monthly updates, resulting in only 5% of games receiving support seven years post-launch.

Despite the high failure rates, 78% of developers prefer working on new game projects. However, more than one-third of respondents feel that industry uncertainty is hindering them from developing new games, and 30% perceive the current market as too difficult to succeed in.

Two-thirds of studios have experienced layoffs, downsizing, or budget cuts. Additionally, 29% of developers have reduced their user acquisition (UA) budgets, reflecting the financial challenges faced by some game development teams.

On the other hand, a recent study delves into the prevailing challenges confronting the UK games industry in terms of its workforce. According to the study, game studios find themselves in a position where a staggering 68% of them require assistance in filling crucial vacancies within their ranks. This underscores a substantial workforce demand that extends beyond the capacity of these studios.