Research Summary
The report provides a comprehensive overview of the latest developments in the gaming industry, focusing on key headlines, fundraising announcements, and independent content. It covers a range of topics, including Google’s payola problem with Epic Games, Meta’s partnership with Tencent, the Indian gaming market, mobile marketing budgets, and the UGC-fication and platformatization of IPs.
Key Takeaways
Google’s Payola Problem with Epic Games
- Google’s Exclusivity Offers: The report reveals that Google offered $147M to Epic Games for Fortnite to be a Play Store exclusive. Google also made similar offers to other large publishers. However, Epic’s decision to go off-platform led to Google losing an estimated $130-250M of potential revenue.
Meta’s Partnership with Tencent
- Meta’s Reentry into China: After a 14-year ban, Meta is reentering China through a partnership with Tencent. The two companies plan to introduce a VR device in the country, marking a significant step towards conquering the metaverse.
Indian Gaming Market
- Indian Gaming Market Growth: According to a report by Google & Lumikai, over 50% of India’s internet users are gamers. The Indian gaming market is valued at $3.1B, with mobile games accounting for about a third of this figure.
Mobile Marketing Budgets
- Drop in Mobile Marketing Budgets: AppFlyer’s data indicates a 20% drop in UA budgets in Q3 of 2023 compared to Q3 2022. Apple Search Ads emerged as the top media source.
UGC-fication and Platformatization of IPs
- UGC-fication of Gaming: The report highlights the trend of UGC-fication and platformatization in the gaming industry, with Supercell opening up its Creator Program and CD Projekt working on The Witcher 3 mod editor.
Actionable Insights
- Investigate the Potential of the Indian Gaming Market: With over 50% of India’s internet users being gamers, there is significant potential for growth in the Indian gaming market. Companies should explore opportunities in this market, particularly in mobile gaming.
- Consider the Impact of UGC-fication: The trend of UGC-fication and platformatization in the gaming industry presents opportunities for companies to engage users in new ways. However, it also raises concerns about content moderation and user safety, which companies need to address.
- Assess the Implications of Mobile Marketing Budget Cuts: The reported 20% drop in mobile marketing budgets could have significant implications for companies in the gaming industry. Companies should assess the impact of these cuts on their marketing strategies and explore alternative channels for user acquisition.
