Josh Hartwell, CEO of Mobile Deluxe, discusses the opportunities that stem from being a mobile-first game developer
Social Casino Intelligence (SCi): Can you tell us a bit more about Mobile Deluxe and how it fi rst got started?
Josh Hartwell (JH): We started Mobile Deluxe back in 2003 as a mobile game developer. At a prior company we had developed JAMDAT Bowling and FIFA Soccer for mobile phones. Bowling became a runaway hit, accounting for a signifi cant portion of JAMDAT’s revenues even when they went public years later.
We saw the beauty of mobile game development and that it was the future. I saw that we could develop higher quality games than what was out there and, importantly, that we could develop relationships with the telecom carriers because of this (and because it was such a young industry). I also believed there was a huge opportunity for casual games; it seemed that all the large publishers at the time were trying to figure out how to squeeze a console game onto these tiny phones of the day and neglecting a huge market.
We also saw an opportunity on the technology side by designing a platform that could support both J2ME and Brew simultaneously. It’s rather like today, where we see huge opportunities in so many areas.
SCi: What was it that first attracted you to casual mobile games?
JH: A number of things. First was the opportunity: a new field with plenty of gaps to fill. Next was being able to publish, and create relationships with the sales channels. Console development was so mired in its classical business models that it was frustrating and lacking innovation.
Having developed console and PC titles, the timeframes for mobile titles were also appealing. In a way it was like early console development: shorter timeframes, immediate feedback and new relationships. It’s just that it was taking place on dozens of phone models, as opposed to a handful of consoles. It leant itself to a lean start-up mentality.
SCi: The last casino app you launched was 3-Reel Slots Deluxe. How has it been performing and do you plan to launch any more casino games in the near future?
JH: 3RSD has performed well, cracking the Top 100 Grossing in the Casino category with very few marketing dollars. Its early metrics appear ahead of our other casino titles as well. We look at day two retention, day seven, and day 30 primarily, all of which are ahead of pace. Its average ARPDAU has been about 50% higher than our other titles. Session length is strong, and it’s rated four and a half stars, which is one of our most important metrics. We also look at cost per acquisition, which has been good. It seems to have found its niche in this crowded slots market.
But really, when you look at it, everyone has been copying the top apps, creating more and more five-reel video slots games. It’s always been one of our strong suits to be able to analyse crowded genres and find the market opportunities. We’ll definitely be launching more casino titles in the future. While it’s seen more and more activity, and is one of the most crowded sections of the app stores, there are still many opportunities, even in crowded sub-genres like poker and bingo. Again, it’s always been one of our strengths to exploit these gaps, whether it’s in slots, solitaire, or blackjack. Next year should see a couple of new casino titles from Mobile Deluxe.
SCi: How do you think mobile games will develop over the next few years from a technological perspective?
JH: The biggest trends are tablets and speed. Different groups will take advantage of these in different ways. For casual, we’ll see more connectedness, more novel social features (with faster interactions, and fewer signup/login roadblocks), and faster server interactions. These games will look more dynamic as well, as they add in more features. While many people assume that ever-increasing processor speeds only pertain to heavier core titles, we’ve never subscribed to that belief and I think history backs us up pretty well on that front.
Casual titles continue to evolve with faster technologies, they just take advantage of them in somewhat different ways and sometimes in more ways than core titles. For casino titles in particular, faster server interactions will result in a better player experience as well, especially as more real-money gambling apps come out, and as more slots games look to the server for the spin result of each and every spin.
Tablets can push games in a number of ways, but without a doubt, we’ll see better graphics, and more interactions with other devices and other media. Depending on the game type, tablets can be a “lean-forward” or “leanback” device. And casual games can be both as well. As such, with tablets, we might see the most innovation and novel new features coming from the casual and casino spaces as opposed to core games. Wearables will also start having an impact on games in a few more years. They’ll be the next big evolution, and will change machine-device interactions completely. Our phones have been getting closer and closer to us since the first cell phone came out and wearables are the next step in the process.
SCi: Where do the differences lie between mobile and tablets? Does one monetise better than the other?
JH: Tablets monetise better. They’re different interactions and they’re used in different locations. Tablets are usually connected to WiFi and all of these things add up to very different experiences. With all of the screen real estate, you can create a very different experience, more immersive, more dynamic, and with richer graphics. Tablets are another area though where we’re still at the beginning. There are untapped opportunities everywhere, from device interactions, to user interfaces, to social features – we’re just below the tip of the iceberg.
SCi: Can mobile social games continue to grow at the rate they have?
JH: Yes! There are many more players to get in, many more mechanics to be discovered, and many more social interactions to find. All of this is still early and evolving. Even in crowded genres, new form factors, new features from social nets, and unfilled gaps in the marketplace all lead to great growth potential. And all of that is still leaving out as-yet-untapped emerging markets to top it off. It follows a normal cycle where the next big change will fuel a lot of rapid growth which will taper off until the next big advance.
SCi: Is the real-money side of gaming something that interests you?
JH: Not at the moment. We see momentum slowing in the US in particular, now that States have recovered somewhat from their recent budget crises. I think there’s more interest from real-money gaming to get into apps than vice versa. They are still drastically different industries that haven’t merged quite as quickly as some thought.
SCi: What is Mobile Deluxe’s long term strategy for growth?
JH: Our strategy is to make the most compelling mass-market experience in genres with which consumers already have some familiarity. We grew about 60% last year, and we’ll continue our growth by getting more high-quality products into the Mobile Deluxe universe. Our strength stems from our 11 years of experience, our nimbleness, our cross platform technology, and our ability to identify opportunities in crowded areas. In a space that evolves so rapidly, all of these aspects of our strategy give us a long term edge.