During the past few years, the video games industry has been severely affected by Zynga and now developing companies are struggling to find new methods of attracting more customers. Reuters reports that the subject will be discussed during this week’s Game Developers Conference in San Francisco. Companies hope that this way they can avoid another identity crisis.
Activision Blizzard, the maker of “Call of Duty” and “World of Warcraft” mega franchises was forced to let go 8 percent of its employees in February because hardware and software sales have dropped significantly. Given these recent events, 20,000 video game executives and designers are expected to take part at the Game Developers Conference which will be held in San Francisco this week. During the meeting, they will try to find solutions to compete with the online and mobile gaming industry.
Since app stores that were created for mobile devices are incredibly crowded, small companies find it hard to compete with big industry names, such as, Zynga or Electronic Arts. Ben Liu, the chief operating officer of PocketGems declared that the costs of user acquisition have grown significantly due to the large numbers of apps that have been created in the past years. As a consequence, it is even more difficult for companies without franchises to sell their games.
Philip Holt, CEO of Row Sham Bow managed to raise 5,000 daily active users, but the company could no longer afford to attract customers to its Facebook strategy game “Woodland Heroes”, so they decided to establish a revenue-sharing agreement with Zynga. Thus, the giant gaming firm will take care of the online promotion of the animal games using its Facebook account and its online platform.
The discussions at the San Francisco Conference will most likely be influenced by the launching of Apple’s iPad 3 this Wednesday. The gaming experience could be entirely modified depending on the characteristics of the new tablet. Analysts, however, think it is impossible for a gaming company to last longer than two or three years on the market because of the revolutionary changes that take place in the industry.