The New Lotteconomy

Fabulous write-up from Dean after he moderated a panel on mobile monetization at the GDC this year. The room was packed even though it was up against other, much sexier sessions.

As Dean correctly notes, that’s a solid indicator that the toughest problem in mobile gaming is discovery and monetizing F2P games. Here are a couple of money-quotes:

It’s all about sustaining an audience that has a natural tendency to peter out after a few weeks. One chief executive at our Mobile Summit joked that the best strategy a game company can pursue, if it has a hit game, is to shut down and not try to do another one. That’s because the hardest thing is to keep a string of hits going.

The good thing is that the winners in mobile monetization can produce billion-dollar games. The bad news is that it feels like a lottery. For the rest of the companies in mobile, there is hope if they can just hang in there.

We talk about this all the time — it’s a lottery. We used to call it “hit-driven” but that term seems archaic now. Welcome to the new Lotteconomy.