Lately, some big game design studios, such as EA and Zynga, are having a bad time pivoting resources, expertise and talent to mobile platforms, where the profit margin can form, as the gaming market shifts from big screens and consoles to smartphone and tablets. That’s reason why it’s gonna be good to be mobile games developer Supercell. Supercell is a 2-year-old startup company in Helsinki, Finland. It has only 95 employees, makes $2.5 million a day from virtual premium in-app-purchase in its top-grossing games – the strategy game Clash of Clans and harvesting simulator Hay Day.
These both free apps launched last summer, using vivid colorful graphics and addictive gameplay. Both apps have stayed at the top of Apple’s iOS game charts since December with huge number of users – 8.5 million registered players, a rare achievement for typically momentary success. Supercell might need some more hits to outlast the long journey. However, now, it’s prosperous and thriving by the users’s real money for buying gems, seeds needed to advance to higher levels in the game.
Supercell reached an operating profit of $104 million on revenue of $179 million in the quarter ended March 31, says IlkkaPaananen, its 34-year-old chief executive officer and founder. That percentage of operating margin – 58% - is unusual for a company in the console video game business, where top earners normally see margins of about 25%. In April, the company closed a $130 million round of financing that valued it at $780 million, creating a lot of paper millionaires. The investors led by Index Ventures, which also funded Dropbox and Path, include early Facebook investor Accel Partners and Atomico, the fund started by Skype’s co-founder NiklasZennström. Index partner and co-founder Neil Rimer said, “Going from zero to $2.5 million in revenues a day, all in less than two years—we haven’t seen that kind of growth before”.
More here.
These both free apps launched last summer, using vivid colorful graphics and addictive gameplay. Both apps have stayed at the top of Apple’s iOS game charts since December with huge number of users – 8.5 million registered players, a rare achievement for typically momentary success. Supercell might need some more hits to outlast the long journey. However, now, it’s prosperous and thriving by the users’s real money for buying gems, seeds needed to advance to higher levels in the game.
Supercell reached an operating profit of $104 million on revenue of $179 million in the quarter ended March 31, says IlkkaPaananen, its 34-year-old chief executive officer and founder. That percentage of operating margin – 58% - is unusual for a company in the console video game business, where top earners normally see margins of about 25%. In April, the company closed a $130 million round of financing that valued it at $780 million, creating a lot of paper millionaires. The investors led by Index Ventures, which also funded Dropbox and Path, include early Facebook investor Accel Partners and Atomico, the fund started by Skype’s co-founder NiklasZennström. Index partner and co-founder Neil Rimer said, “Going from zero to $2.5 million in revenues a day, all in less than two years—we haven’t seen that kind of growth before”.
More here.