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KILLED IN THE CANDY CRUSH? by Mr Biffo

5/11/2015

3 Comments

 
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Activision Blizzard has forked out an eye-blistering £3.8 billion to buy King.com - creator of mobile puzzle phenomenon Candy Crush saga.

​That's more than Facebook paid for Oculus, more than Microsoft coughed up when acquiring Minecraft studio Mojang, and more than Electronic Arts squirted over Popcap Games - creators of the hit Plants vs Zombies.

Though Activision may already be swaddling blockbuster brands such as Skylanders and Call of Duty between its greasy thighs, the purchase is a sure sign that the mobile market - however it develops - is seen by many as where the real money is, going forwards.

Alas, it smacks somewhat of desperation, like a cornered octopus flailing around for a broken bottle.

Candy Crush Saga might be the game that gets played by people who don't play games, but the phenomenon is on the wane. Even my own mother - who was forever sending Candy Crush invitations on Facebook - has moved onto Papa Pear Saga. Candy Crush might have over 500 million players worldwide... but that isn't going to last forever.

In short: Has Activision just wasted an enormous amount of money?

NEVERTHELESS
According to a report issued by games market research firm Newzoo, this year will see mobile gaming overtake console games, in terms of revenue. However, the relatively lower development costs of mobile games, coupled to the addictive nature of in-game micro-transactions, has made it a £multi-billion industry. And it's an industry with a voice that travels beyond the traditional gamer, and it's why nearly half of gamers in 2015 are female.

Speaking broadly, from the statistics it seems that guys play console and computer games, and girls play on their phones.


Nevertheless, Activision's purchase of King seems ill-considered. Candy Crush is the firm's one bona-fide hit, out of over two hundred games it has released in its 12-year history.

​Additionally, Activision has failed to capitalise on its established brands, despite releasing mobile games based on most of them (evidently, mainstream punters aren't interested in Call of Duty, even if it's released for their phone). It's becoming apparent that mobile gaming hits are like catching comets in a beer bottle. Ie; you have to be in the right place at the right time, and will probably end up losing your hand.

Even Rovio, the studio behind Angry Birds, has essentially become a one-brand operation, after it struggled to release a follow-up which had the same level of success. Even attempts to diversify Angry Birds with racing games and the like has failed to appeal to a mass audience.
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PANIC AT THE DISCO
There's an undeniable panic gripping the games industry right now.

​Big console companies like Konami, Sega and Nintendo are rushing to switch at least part their focus towards mobile gaming, rather than continue to invest all their energies in big budget console titles.

​The absurd amount of money Activision has spent on Candy Crush is that panic writ large.

However, the huge, one-off successes of King and Rovio suggest that entering into mobile gaming is no license to print money; it's more like buying a lottery ticket. And if you do get that big hit, keep playing the same song over and over, and even die-hard fans are going to get sick of it.

Plus there's finding a balance between making money and making customers feel exploited. Arguably, PopCap ruined its previously excellent Peggle franchise with in-game transactions, and Angry Birds 2 felt like more of the same... only greedier. 

Alas, that's the dilemma with any company. They don't exist out of the goodness of their hearts. They're not a public service. They exist to do one thing: make money. And all we can hope is that they make our life better in how they do that, and don't upset us in the process.


Whatever Activision is hoping it achieves in buying the makers of Candy Crush Saga, you can bet that "even more Candy Crush Saga" features heavily in the business plan. Along with a sizeable investment in in empty beer bottles and telescopes...

FROM THE ARCHIVE:
IT PEGGLES THE MIND by Mr Biffo
REVIEW: ANGRY BIRDS 2 (iOS/Android)
OLD GAMES ARE THE WORST - A rant by Mr Biffo
MAN VERSUS GOOGLE CARDBOARD
THE MOST BORING GAMING VIDEO YOU'LL EVER WATCH
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3 Comments
Kelvin Green link
5/11/2015 01:42:11 pm

When I heard the news my first thought was "I hope Activision now stops King from suing everyone who uses the word 'Saga' in their game title."

Reply
Steve McRotransaction
5/11/2015 07:42:39 pm

We talk a lot about customers feeling ripped off with the freemium model, but there is a question as to whether they really do. In the Halo article the other day it was pointed out that people who aren't "gamers" don't like the idea of £50 for a single piece of media. They do, however seem to accept the freemium model much more than people who've been gamers longer do. I personally hate microtransactions because it's not what I'm used to, but it may well be the preference of the new wave of gamer.

Reply
DD
19/11/2015 01:22:34 pm

Interesting timing. Especially when you consider Warcrafts subscriptions have dropped rapidly of recent.
I'm not saying Warcraft is dead, and I'm sure the subs will pick back up with the new expansion, but it can't be denied that they will never reach the dizzy heights of 12 million again.

Could be a smart investment.

Reply



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