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How one Japanese gaming startup is generating $3.8 million in revenue per day

shoestring.com.au

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Re: How one Japanese gaming startup is generating $3.8 million in revenue per day

#3
I don't believe this kind of in-app pay-to-win style games will last much longer. It's the kind of thing someone new to games will pay for, but after paying for a bit, those same people seem to 'wise up' eventually.

I think you'll see these kind of games slowly decreasing in profitability over the next 5 years. It's similar to many other forms of short term profit in which the value provided does not equal the amount paid - eventually the market will dry up as it becomes common knowledge.

Re: How one Japanese gaming startup is generating $3.8 million in revenue per day

#4
post #3

I don't believe this kind of in-app pay-to-win style games will last much longer. It's the kind of thing someone new to games will pay for, but after paying for a bit, those same people seem to 'wise up' eventually. I think you'll see these kind of games slowly decreasing in profitability over the next 5 years. It's similar to many other forms of short term profit in which the value provided does not equal the amount…

I'm not too sure. I see a lot of people these days, and unfortunately even kids, becoming hooked on quick fixes; pay-to-win games, AAA games with 10-hour single-player campaigns, and pretty much all mobile games. I gave a copy of Pokemon Black to a friend's kids (same age as when my brother and I, and all of our friends, were obsessed with them), and they couldn't get more than 15 minutes in without getting bored. Obviously that's a very small sample group, but it seems like a lot of the big companies are moving over to mini-game filled nonsense rather than requiring anybody to utilise their brain or imagination for more than five minutes.

I hope you're right though; I really miss the days where I'd buy a complete game on release, rather than only getting half the experience.

Re: How one Japanese gaming startup is generating $3.8 million in revenue per day

#5
I would love to see more evidence. "A report suggests..." doesn't quite cut it for me.

Not saying the author is lying, but his maths could be off or maybe he could have misread something somewhere (e.g. maybe it is $3.8M/year vs /day).

Re: How one Japanese gaming startup is generating $3.8 million in revenue per day

#6
post #4
post #3

I don't believe this kind of in-app pay-to-win style games will last much longer. It's the kind of thing someone new to games will pay for, but after paying for a bit, those same people seem to 'wise up' eventually. I think you'll see these kind of games slowly decreasing in profitability over the next 5 years. It's similar to many other forms of short term profit in which the value provided does not equal the amount…

I'm not too sure. I see a lot of people these days, and unfortunately even kids, becoming hooked on quick fixes; pay-to-win games, AAA games with 10-hour single-player campaigns, and pretty much all mobile games. I gave a copy of Pokemon Black to a friend's kids (same age as when my brother and I, and all of our friends, were obsessed with them), and they couldn't get more than 15 minutes in without getting bored. Ob…

I think he means it will go the way of Facebook games.

Re: How one Japanese gaming startup is generating $3.8 million in revenue per day

#7
On a side note, I find showstringmedia.com.au as an interesting company with three different businesses under it - media, applications (though there is only one) and lead generation.

Are you aware of similar businesses that have successfully built independent media business, bootstrapping it with other services?

Re: How one Japanese gaming startup is generating $3.8 million in revenue per day

#8
I'm going through this market with a friend right now. This is very real. For example look at DeNA.[0] This statement right here is simply amazing:

As a result, revenue of the Social Media Business was ¥179,627 million, up 37.9% year-on-year, and segment profit was ¥78,106 million, up 29.4% year-on-year.

Their YOY revenue from Social Media (mobile games) is $1.8bil.

[0]http://v4.eir-parts.net/v4Contents/View.aspx?template=ir_mat...

Re: How one Japanese gaming startup is generating $3.8 million in revenue per day

#9
post #3

I don't believe this kind of in-app pay-to-win style games will last much longer. It's the kind of thing someone new to games will pay for, but after paying for a bit, those same people seem to 'wise up' eventually. I think you'll see these kind of games slowly decreasing in profitability over the next 5 years. It's similar to many other forms of short term profit in which the value provided does not equal the amount…

It's "common knowledge" that you will lose money, asymptotically, at a casino or playing the lottery. Yet casinos and lotteries thrive.

Re: How one Japanese gaming startup is generating $3.8 million in revenue per day

#10
Our highest law court in Germany made a judgement recently which can make selling that kind of games a lot harder here in the future. They forbid advertisement for online game items if the advertisement is targeted at children. The concrete example which triggered this could be translated as "Take the chance bargain and give your armor and weapons that certain something." German link: http://www.heise.de/newsticker/meldung/BGH-verbietet-Interne...
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