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BBC article

Shares of the maker of popular mobile game Candy Crush fell as much as over 14% in after hours trading after it warned of weaker profits.

King Digital said it expects fluctuations in foreign currency and a lack of new releases to hold back its earnings in the current quarter.
The big drop in its shares came despite the release of first quarter sales figures that beat market expectations.

The firm has been struggling to increase market share.

King Digital's revenue fell 6.1% to $569.5m (£361m) in the first three months of the year from a year ago, but that was higher than analysts' forecasts of $563.4m.

However, the London-based game maker said its gross bookings, which is what players spend before costs such as app store fees - for the April to June period would be between $490m and $520m - below expectations.

"We look toward the remainder of the year, we expect the mid-year period to be seasonally softer, returning to growth trends in the latter part of the year," the company said in a statement on Thursday.

King Digital is launching a new game this year, but that will not be released until the later half of the year.

The company said that falls in both gross bookings and revenue in the first quarter were largely due to lower sales from its Candy Crush Saga and other "more mature games" - a sign that players are moving on to other games.

15 minutes of fame over? This seems to be the trend with mobile games, I hope Konami and Nintendo have good long term plans for entering this market

Its especially risky for Komani, if their console fanbase abandons them and the mobile market decides it doesnt care about their IP they could be in a lot of trouble

Edit: a mod changed the title to add the money part, I didn't mean to hide or obscure that, I merely copied the article title the BBC used

 

[BodiesWithoutOrgans]

Mobile gaming can piss off

 

[The Jackdog]

Happened the same way with zynga didnt it?

They arent deep games. Companies like this can only stay afloat with constant releases that are popular and profitable. The first part of that is needed for the second.

 

[Pankratous]

The sooner they fall the better.

 

[Jay Sosa]

I highly doubt Konami or Nintendo will rely on flavor of the month type games. I expect (or at least I hope for) full fledged titles that are worth my time and my money. Not games that are fun for a few minutes during my commute. So no I don't think they will encounter similar problems.

 

[BrokenIcarus]

Finally. I hope they start developing more meaningful games or file for bankruptcy.

 

[sturgboski]

Not to worry. It will be installed with every copy of Windows 10. Surely that was money well spent and will turn this around.

 

[Savitar]

What, not infinite profits that always go upwards sky high with no ending.

Who knew!

When this bubble pops people will wonder why it happened and how no one saw it coming.

In the kingdom of the blind and all that.

 

[Falk]

There was a great article some time back about the lack of brand loyalty. If people wander off from their game, it's a crapshoot if they go to another of your games. The average joe wouldn't even be able to tell you who made Candy Crush Saga in the first place.

So not only does it mean you have to get that one-in-a-million stars align chance for a mobile hit, you have to do it again and again and all your past efforts pretty much don't matter.

Basically enjoy your $$$ while it's coming in. :|

 

[Bumpers]

Saw this coming from a mile away. I understand how all companies want their chance to grab that mobile money, but its clear you need the advertising budget and also a hit just for it to be even noticed.

Surely we're going to reach a stage soon where the profits wont be able to match the advertising budget, and where Kate Uptons breasts will be larger than the playerbase.

 

[bobbytkc]

They expect growth just because they have a new game?

The slide in popularity of Candy Crush will not be compensated by the growth of a less popular title.

 

[Interfectum]

inc "mobile bubble popping" posts

 

[NinjaBoiX]

Why do people even "pay to win"?

I've been playing Plants v Zombies 2 for months and haven't spent a penny.

 

[Collateral22]

Mobile gaming needs to die. If these shitty F2P games become the norm and take over I'll quit gaming.

 

[Boney]

If I were first post, I'd edit it, just a friendly warning.

But it seems that now investors are wising up to these "hit bubbles". Just like Rovio, it's very hard to make such a hit as your breakout game even if you have better distribution and pedigree because of it. Must be hell really.

 

[Averon]

Another flash in the pan mobile company. Has any mobile company that created a hit able to build off it and sustain themselves?

 

[OminoMichelin]

Here's how I picture shareholders when I read these stories

 

[oni-link]

Happened the same way with zynga didnt it?

They arent deep games. Companies like this can only stay afloat with constant releases that are popular and profitable. The first part of that is needed for the second.

Even the popular ones are only viable for a short period of time, like you say they're not deep games, people will play it while they are having fun then drop it for the next popular game

If you don't manage to get a string of hits your company will quickly find itself in trouble, to me making mobile games doesn't seem like a good plan if you want to make a lot of money in the long term, though if you get a hit in the short term you're going to hit gold

 

[Stone Ocean]

If I were first post, I'd edit it, just a friendly warning.

But it seems that now investors are wising up to these "hit bubbles". Just like Rovio, it's very hard to make such a hit as your breakout game even if you have better distribution and pedigree because of it. Must be hell really.

Yeah, the mobile market sounds harsh as fuck. If you get a big hit and become big you better put out hit after hit unless you want to fall off on your face.

It doesn't feel like there's any brand loyalty whatsoever.

 

[Hasney]

Makes sense, you get one game out there and then you have to do something else to capitalise. Not wait until the money slows down and then just release the same game again, BUT THIS TIME WITH SODA.

 

[bigkrev]

They still made 570 Million dollars in 3 months. The bubble might be shrinking a bit, but it's nowhere near bursting

 

[jroc74]

Have they now? Like some mentioned recently....dont forget Zynga. I thought what happened to them would never happen.

 

[Gravy Boat]

Why do people even "pay to win"?

I've been playing Plants v Zombies 2 for months and haven't spent a penny.

Candy Crush can be infuriating at times. My girlfriend is super into it and will often get stuck on a level for weeks at a time through no fault of her own. It reaches a point where if she sees she can finish a level that's been torturing her, she'll pay the 69p or whatever it is for extra moves to get past it.

I've played it a bit and I swear the game is designed screw you over and stop you progressing, encouraging you to pay for shit to help you get through.

 

[AlucardGV]

one dies, another one will rise. those puzzle games can't last forever, people get bored after a while.

 

[Hasney]

They still made 570 Million dollars in 3 months. The bubble might be shrinking a bit, but it's nowhere near bursting

That's what they said about Zynga. For King specifically, unless they can do something compelling, it'll be a constant slide from this point.

 

[NinjaBoiX]

Candy Crush can be infuriating at times. My girlfriend is super into it and will often get stuck on a level for weeks at a time through no fault of her own. It reaches a point where if she sees she can finish a level that's been torturing her, she'll pay the 69p or whatever it is for extra moves to get past it.

I've played it a bit and I swear the game is designed screw you over and stop you progressing, encouraging you to pay for shit to help you get through.

To be fair, PvZ2 is like this sometimes too.

There are some levels where zombies just pop up half way down the screen in absolute swarms and the only way to possibly survive is to spam a few special move thingies.

But unless you suck massively at the game you should have enough "coins" saved up for when you need these to not have to spend real money.

I think tbis business model preys on inept gamers with no grasp on the value of money.

 

[oni-link]

Candy Crush can be infuriating at times. My girlfriend is super into it and will often get stuck on a level for weeks at a time through no fault of her own. It reaches a point where if she sees she can finish a level that's been torturing her, she'll pay the 69p or whatever it is for extra moves to get past it.

I've played it a bit and I swear the game is designed screw you over and stop you progressing, encouraging you to pay for shit to help you get through.

This is why I don't like F2P, even the most noble of devs will have this in the back of their mind when they're designing the game, and for every F2P game that doesn't screw you over (DOTA2, TF2) there are 10,000 that do

 

[Sir_Crocodile]

devs who want to put the word "saga" in their games popping champers right now

 

[Radec]

They still made 570 Million dollars in 3 months. The bubble might be shrinking a bit, but it's nowhere near bursting

Yep.

But now's the time to cash in.

 

[Majukun]

they just need to release other games..
of course people are not gonna play one single game for all eternity..but since making these games costs very little money..they can afford to continue throwing something at the wall until it sticks

 

[Gravy Boat]

This is why I don't like F2P, even the most noble of devs will have this in the back of their mind when they're designing the game, and for every F2P game that doesn't screw you over (DOTA2, TF2) there are 10,000 that do

F2P as a mechanic isn't inherently evil, good F2P can be great. It's just a case of finding it, which can be hard with all the shit in the way.

 

[maltrain]

B...b...but mobile gaming is the future!!!

Konami sais that!!!

 

[zenosparadox]

You gotta ride the wave and generate as much profit as you can

Spoiler

is the way of the mobile game maker

. They have done very well for themselves.

 

[Gravy Boat]

B...b...but mobile gaming is the future!!!

Konami sais that!!!

It very well still could be. It's not going anywhere.

 

[dantevsninjas]

I highly doubt Konami or Nintendo will rely on flavor of the month type games. I expect (or at least I hope for) full fledged titles that are worth my time and my money. Not games that are fun for a few minutes during my commute. So no I don't think they will encounter similar problems.

Possibly. But I'd be willing to bet that full fledged games like that don't do nearly as well. Here's the problem with the "mobile future": in order to make the kind of money that everyone is hoping to make, you need more than just a few whales, you need a whole bunch of casual players who will plop down a little cash. These players are fickle though; they'll just keep moving on to the next best thing until they get bored. This is the same thing as wondering why no console is selling as well as the Wii did. It was a fluke that managed to pull in people that don't traditionally play games, and this is what we're seeing in the mobile space. To these people gaming is a novelty, and eventually they will get bored and move on.

F2P as a mechanic isn't inherently evil, good F2P can be great. It's just a case of finding it, which can be hard with all the shit in the way.

I've yet to find a F2P game that hasn't made me wish I could have just plopped down some money to begin with and avoid all of the bullshit.

 

[Usobuko]

Unless you are supercell or some jpn mobile companies who come up with repeated hits, your fate is zynga'd.

 

[bobbytkc]

They still made 570 Million dollars in 3 months. The bubble might be shrinking a bit, but it's nowhere near bursting

Nothing to do with the industry. Mobile gaming is here to stay. King, however, is pretty much going down unless they produce another hit game, which historically speaking, is next to impossible.

 

[DNAbro]

Expected. Mobile market sucks for loyalty, especially when it comes to unknown IPs like this. Double that when the quality is low.

 

[oni-link]

they just need to release other games..
of course people are not gonna play one single game for all eternity..but since making these games costs very little money..they can afford to continue throwing something at the wall until it sticks

Yeah but that is part of the problem, the market is over saturated, even getting a good game out doesn't mean someone won't clone it and end up more popular though dumb luck

King don't have brand loyalty, no one really cares, which is another problem with giving something away for free

I doubt many people will play their next game off the back of any respect or trust they have in King, they'll play whatever everyone else is playing

 

[bigkrev]

That's what they said about Zynga. For King specifically, unless they can do something compelling, it'll be a constant slide from this point.

Zynga failed because they stuck with a sinking game platform- Facebook, instead of focusing on Mobile. It's unlikely that anything in the next 5 years could steal mobile gaming's market unless wearables take off like crazy. There will be a slide, but nothing like Zynga going from a $10 stock to a $2.50 stock in less than a year plummet

 

[Mendax]

do you see that, Konami. DO YOU SEE THAT?

 

[diggmcbadass]

To be fair, PvZ2 is like this sometimes too.

In my experience Popcap games are way more aggressive than King about making a level absolutely impossible to get past.

 

[Interfectum]

do you see that, Konami. DO YOU SEE THAT?

Yes, they see Candy Crush making half a billion a quarter and they want some of the pie.

 

[oni-link]

F2P as a mechanic isn't inherently evil, good F2P can be great. It's just a case of finding it, which can be hard with all the shit in the way.

It can, but its a model where being evil makes you more money, most people who are making games are doing so to make money

There will always be devs who make free to play games that are fair, and these will always be great, but they will always be out numbered 1000 to 1 by those who design their game to be a skinner box with paywalls

Get players addicted, add walls they can't get over, let them pay to get over them, rely on "whales" wait 6 months, cash out, move on

 

[Mendax]

Yes, they see Candy Crush making half a billion a quarter and they want some of the pie.

sad

 

[Gravy Boat]

I've yet to find a F2P game that hasn't made me wish I could have just plopped down some money to begin with and avoid all of the bullshit.

You haven't played Dota 2, Team Fortress 2 or Path Of Exile? These are excellent examples of F2P. In Dota 2 especially, the entire game is free. There's no bullshit to avoid, as there's nothing to unlock except cosmetic items.

 

[Karsticles]

This game is still probably bringing in more than 99% of modern console gaming titles in terms of profit. Mobile isn't going anywhere, unfortunately.

 

[Deleted member 20920]

There was a great article some time back about the lack of brand loyalty. If people wander off from their game, it's a crapshoot if they go to another of your games. The average joe wouldn't even be able to tell you who made Candy Crush Saga in the first place.

So not only does it mean you have to get that one-in-a-million stars align chance for a mobile hit, you have to do it again and again and all your past efforts pretty much don't matter.

Basically enjoy your $$$ while it's coming in. :|

Never read that article before but I would probably agree. There hasn't really been many attempts at building brands in the mobile space and these huge hits tend to be one hit wonders. When the fad passes these companies will suffer.

 

[Stike]

There was a great article some time back about the lack of brand loyalty. If people wander off from their game, it's a crapshoot if they go to another of your games. The average joe wouldn't even be able to tell you who made Candy Crush Saga in the first place.

So not only does it mean you have to get that one-in-a-million stars align chance for a mobile hit, you have to do it again and again and all your past efforts pretty much don't matter.

Basically enjoy your $$$ while it's coming in. :|

This is so true.

There are not only hundreds of millions of potential customers, but ALSO as many competitors, because those games are so dirty cheap to make. (Think of Flappy Bird!)

Basically, it's a zoo out there, and hitting a hype with some game that rakes in a ton of money, like Angry Birds, Flappy Bird, Candy Crush etc. is highly dependent on marketing and making the right move at the right time. Make one mistake, and your game will drown in an ocean of apps.

Also, there is really no brand loyalty. Some names may be useful to gain the attention of the audience (like Nintendo and Sega), but they have a reputation and a fanbase.

If you have neither, you will be sucked.

 

[Kouriozan]

Happened the same way with zynga didnt it?

They arent deep games. Companies like this can only stay afloat with constant releases that are popular and profitable. The first part of that is needed for the second.

Yep, the problem is that they don't manage to make people play (and spend money) on their other games.
They only play Candy Crush and that's it so they got the genius idea to make a "sequel" (soda) but one day or another, people will be bored with it like Rovio/Angry Birds.