MOBILE DEVELOPER SEEKS PROFIT FOR FUN AND GAMES
After three years working with the biggest hyper-casual game publishers in the business, Peter Phillips, MD of Amuzo Games, has some sage advice for small developers looking to make an elusive profit…
I
n the ever-evolving game development business it can take all your time just to keep on top of the latest trends and ensure your studio has the cashflow to
keep ticking over. The last thing you need is for your publishing partners to shortchange you. The standard industry model for casual and hyper-casual mobile games is that the development studio creates a game prototype, the publisher tests this in the market, and depending on the test results (notably CPI and D1 retention) decides whether to partner with the developer to complete and market the game, with a view to sharing future profits. In some cases, the publisher contributes to the
studio’s development costs in the form of advances on future royalties. But these advances, though welcome, are typically not sufficient to cover the full costs of development, and the real incentive for the developer is anticipation of their share of revenues when they create a successful game. This is where developers need to be very careful. Your
contract with the publisher is almost certainly going to offer you a share of NET revenues. Net meaning that after the publisher has deducted all their marketing costs. But the developer has no control over the level of those costs.
40 | MCV/DEVELOP July 2023
The publisher can, if they wish, spend all the revenues on more marketing. You might think that the publisher will use their
expertise to maximise the profits from their campaigns and stop spending when an extra $1 spent no longer brings in more than $1 of revenue, but that may not be the case.
FOR EXAMPLE… Some publishers are funded by private equity and these investors want to see fast growth, often with a view to
“Keep your contracts specific to an individual game to avoid the claw back clauses that can spoil the champagne celebration when you find a winner!”
Peter Phillips, MD of Amuzo Games
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