Ever since smartphones were introduced in our lives, the market for these devices is increasing and also mobile gaming has reached the point where it has left handheld consoles behind. Maybe that is the reason behind “Square Enix investing in premium mobile games”.
The announcement was made during the investors conference. It seems that the publisher intends to ditch the free-to-play mobile game model.
Last year Square Enix earned a revenue of $631 million from mobile games, and most of this revenue was from the micro-transactions within free-to-play games. However, during the same period the publisher observed a significant increase in interest in premium mobile games.
During the conference the publisher notified that these premium games have an advantage, as these will be AAA games and will not fell into obscurity after the release and will be sold well for years to come, making a steady source of income.
During the conference Square Enix elaborated that premium games require low cost to develop as compared to free-to-play games. In free-to-play games the publishers are required to constantly invest resources in the development of new updates, new content, organizing new event every once in a while.
All of this increases the cost of the game, but are necessary to do in free-to-play mobile games. Because if players loose interest in the game, the creators won’t be able to harvest any benefits. On the contrary, premium mobile games do not require these.
The publisher stressed that with the significant increase in power of smartphones, it is getting easier to develop ambitious projects. The company already excels in developing games on handhelds, some of them are ported to smartphones and consoles. However, the company has plans to develop games for mobile devices from ground up.
The reason behind “Square Enix investing in premium mobile games”, might be due to the drop in popularity of handheld consoles and increase in popularity of smartphones. According to a recent study, smartphones are the reason of decline in handheld consoles, and seems like Square Enix is going with the flow.
What are you thoughts on Square Enix investing in premium mobile games and ditching free-to-play model? Let us know in the comments.