How Jam City views growth for mobile games in 2021


Jam City president Josh Yguado stated he’s optimistic that the sport business can proceed to develop in 2021, regardless of the problem of getting to beat report growth numbers for 2020.

Yguado made the remarks on the GamesBeat/Facebook: Driving Game Growth occasion right this moment. Los Angeles-based Jam City is likely one of the largest U.S. mobile recreation firms, with titles starting from Cookie Jam to Harry Potter: Hogwarts Mystery. The firm has had greater than a billion downloads and greater than 30 million customers.

Yguado acknowledged that each mobile recreation firm is questioning whether or not it will possibly beat the numbers from 2020, when, throughout the onset of the pandemic, new gamers flocked to games as a result of that they had nothing else to do, and games had been a technique to be social throughout lockdowns.

“It is going to be hard to beat the incredible growth rates we saw in 2020, but the silver lining is that the big bumps we saw in user acquisition and new players into our games have held,” he stated. “These weren’t temporary users. These weren’t temporary wins. All of that is sustaining, at least at Jam City. It accelerated some trends that were already happening.”

He famous {that a} Deloitte survey discovered 40% of millennials and Gen Z gamers ranked video games as their prime three actions. The developments that time to more cash coming into games and stronger curiosity in games have been taking place for years, and it’s not simply because of COVID-19, Yguado stated.

“I’m not ready to chalk it up to COVID,” he stated. “If you follow player patterns, the dollars almost inevitably follow. So many players have entered gaming through mobile. These trends were a long time coming and to a certain extent the investment dollars have been catching up.”

“That says something about player expectations and entertainment expectations are changing very quickly in our industry,” Yguado stated.

Market insights and analytics agency App Annie discovered that point spent on mobile in 2020 surged to a median of 4.2 hours per day on Android, which amounted to three.5 trillion hours, up 20% and 25%, respectively, from 2019. That mobile time spent surpassed the typical 3.7 hours of dwell TV watched per day.

More individuals began enjoying games in the pandemic, as different types of leisure had been lower off. Generally talking, it takes 66 days for individuals to select up new habits, and throughout the pandemic, individuals have had far more time than that, based on App Annie. That means these new gamers are prone to keep on with enjoying games even after the pandemic is completed.

And App Annie additionally discovered that individuals performed mobile games at house, though they weren’t commuting they usually had the choice to play PC and console games. The comfort of mobile games is why it has turn into the most important section in games and will develop 25% to $120 billion in 2021, based on App Annie.

Facebook Gaming’s report on Games Marketing Insights for 2021 discovered new gamers in the U.S. grew by 28 million since March 2020, they usually’re nonetheless enjoying. They’re enjoying extra hours per week than present gamers, they usually’re extra social they usually’re spending extra.

Jam City lets you attend the school for magic in Harry Potter: Hogwarts Mystery.

Above: Jam City enables you to attend the college for magic in Harry Potter: Hogwarts Mystery.

Image Credit: Jam City

Yguado stated that his firm will lean in on the subject of making games extra social. Story and writing have turn into extra necessary as games begin to substitute different types of leisure like books and flicks. Jam City is creating extra narrative role-playing games and technique games on prime of the informal fare that it began with.

“We have a whole team of writers that came from television,” Yguado stated.

Harry Potter followers have flocked to the mobile recreation as a result of J.Ok. Rowling hasn’t created any new titles in the ebook or film sequence, Yguado stated. Production values are going up, and it’s at all times social as a result of your social graph is with you on the cellphone. Players are selecting up their telephones as an leisure powerhouse as an alternative of a handy different to watching TV, Yguado stated.

As for elevating the bar on creativity, Yguado stated, “It starts with people. We have gone out of our way to find talent from other creative industries to try and bring different perspectives and frankly to up our game. If you aren’t willing to take chances on people who don’t come from games but have that deep creative capability, you will probably miss out on opportunities and talent.”

That means hiring individuals from Hollywood, PC recreation growth, and console growth, he stated. Yguado believes that the consolidation taking place now is sensible, because the business was too fragmented in the previous and suffered from too little funding.

Jam City's headquarters in Culver City, California.

Above: The new Hollywood: Jam City’s headquarters in Culver City, California.

Image Credit: Dean Takahashi

“With the companies that can be consolidators in this space and build up strong central services, which can be differentiators, and continue to roll up creative studios in this space and bring those central services to them, I think we’ll see a lot of value creation in this space,” Yguado stated. “We definitely see ourselves as a consolidator in this space. We did three acquisitions in the last three years and each one has performed very well.”

Of the clouds on the horizon, Yguado acknowledged that the change to the Identifier for Advertisers (IDFA) has created some uncertainty. Apple is making it tougher to do goal promoting in favor of consumer privateness, and that may make it considerably tougher to do mobile recreation advertising in the quick time period.

But Yguado stated that elevated consumer privateness could possibly be good for the mobile business. And over time it may result in decrease consumer acquisition prices. In that sense, he stated, it’s a “double-edged sword.” Based on some checks, this has some affect on advertising marketing campaign effectiveness and advert income, however he famous that networks have gotten extra environment friendly over time.

“There’s a lot of talk, but I don’t think it’s going to be a big issue,” he stated.

Asked if he would purchase a Hollywood studio, Yguado stated, “We are a Hollywood studio. That’s the point. We’re creating intellectual properties. If you think about some of the biggest IPs in the world,  our games have so many more viewers than some other channels that are more known or famous. If you have a big franchise and you need to reach your fans directly, there’s no better place than mobile games and video games generally. I think we’re just entering the golden age of video games and mobile games specifically.”

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