Another industry seems to be on the verge of another “identity” crisis, reports Reuters. The global $64 billion video games industry is the next in the line to go through the crisis. The global interactive entertainment industry has been trying to cope with the massive online and mobile gaming for years, but with the current situation companies in that domains are finding it harder to turn a profit.
“The number of apps is growing exponentially and with that, costs of user acquisition is going up. If you are not a company with a series of franchises like us, it becomes a lot tougher,” said Ben Liu, the chief operating officer of PocketGems, the makers of hit casual mobile games “Tap Zoo” and “Tap Pet Hotel”.
Philip Holt, CEO of Row Sham Bow, said, “It has 5,000 daily active users but it was getting expensive to attract players to its Facebook strategy game “Woodland Heroes”, where raccoons fight to make the forest safe from an evil bear.” This is what the increasing marketing burden is driving some fledgling companies into the arms of deeper-pocketed partners.
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