Clash of Clans making more money than Pokemon Go

Supercell is not fazed by challengers such as Niantic/Nintendo’s Pokemon Go. The maker of popular mobile game Clash of Clans told Reuters that while sales growth stalled last year due to PoGo, their earnings increased.

The company benefited from a successful launch of their latest game Clash Royale, as well as less spending on advertising. Medieval style war strategy game Clash of Clans remained on the  list of top-earning applications since its launch in 2012.

Financially, App Annie reported that Clash of Clans was ranked second, behind Mixi Inc’s Monster Strike. Clash Royale, which features Clash of Clans characters, was on No. 5. In comparison, while Pokemon GO has the most number of active users, they are still lacking in terms of revenue.

Based in Finland, Supercell is majority owned by China’s Tencent Holdings. Chief Executive Ilkka Paananen said “In the summer, when Pokemon GO was a huge hit, a taxi driver asked me what would be our counter-attack. I said there’s no point in doing something against a competitor, we must only focus in doing what we do best, improve our games further.”

Supercell has not launched a variety of games to interest different audiences. Instead they focused on the “freemium” price strategy for the handful they’ve developed; where the games are free to download, but generate revenue from in-game purchases.

In the past few years, the mobile games market is growing thanks to the exponential growth of smartphones and data usage. However, many game makers faced road blocks, after failing to push forward any other titles to follow up from a single hit game. While Supercell maybe making a lot of money, they face the same issues of following up from their initial hits.

 

Reuters reported “Supercell’s earnings before interest, tax, depreciation, and amortisation rose to 917 million euros ($967 million) last year from 848 million in 2015. Revenue was broadly flat at 2.1 billion euros.”

This report is sourced from Reuters

 

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