The Downfall Of Gameloft - WTF Went Wrong? *COMPLETE STORY*

Summary

Gameloft, once a mobile gaming giant known for high-quality titles like Asphalt, Brothers in Arms, and Gangstar, faced a significant decline after 2014. While its success was built on polished, console-inspired games, changing market trends and the rise of free-to-play models with microtransactions led to falling revenue. The company's takeover by Vendi further compounded the issue, leading to management changes and a shift towards monetization strategies that alienated loyal fans. However, Gameloft is now expanding into PC and console gaming, seeing success with titles like Disney Dreamlight Valley, signaling a potential comeback.

Takeaways

• 😀 Game Loft, founded in 1999 by Mitchell Gamo, is known for producing high-quality mobile games.
• 🎮 Game Loft's success was driven by creating mobile game clones of popular PC and console titles, providing a similar experience on mobile.
• 💰 Initially, Game Loft avoided ads and microtransactions, offering premium games without interruptions, unlike many competitors.
• 📱 Game Loft focused on quality, even producing over 190 games, ensuring they delivered top-notch experiences for mobile gamers.
• 🎯 By 2014, Game Loft's focus shifted to offering a wide variety of games, from racing to FPS, appealing to a broader audience.
• 📉 Game Loft's decline began when they failed to adapt to the mobile gaming trend of free-to-play games with ads and microtransactions.
• 💥 In 2015-16, Vivendi, a French media giant, took over Game Loft, acquiring a majority stake, leading to management changes.
• 💔 The hostile takeover by Vivendi resulted in massive layoffs, studio closures, and a loss of creative direction for Game Loft.
• 🚀 Nova Legacy's release, although anticipated, fell short due to heavy focus on microtransactions and limited campaign content.
• 📉 Game Loft pulled the plug on fan-favorite games and ceased updating older titles, leading to dissatisfaction among its user base.
• 🌍 Despite challenges, Game Loft continues to thrive with 1.5 million downloads per day and a successful expansion into PC gaming, like Disney Dreamlight Valley.

Q & A

What is the origin of Game Loft and who founded the company?

Game Loft was founded in 1999 by Mitchell Gamo, who was also a co-founder of Ubisoft. The company originated from the GMO family's shift from agriculture to computers and eventually the video game industry.

How did Game Loft initially gain success in the mobile gaming industry?

Game Loft gained success by developing mobile games inspired by popular console and PC titles. These games, while often referred to as clones, were well-polished and provided a solid gaming experience, which made them appealing to mobile gamers.

What was Game Loft's approach to monetizing their games?

Initially, Game Loft avoided monetizing their games through ads. Instead, they relied on a pay-to-download model where players paid upfront for the game, ensuring an uninterrupted gaming experience. They only had a minimal number of microtransactions.

What change occurred in the mobile gaming market that affected Game Loft's strategy?

The mobile gaming market shifted towards free-to-play games, which made revenue through ads and microtransactions. This trend, along with the rise of skins and battle passes, led to Game Loft’s premium games losing out in sales.

How did the acquisition by Vivendi affect Game Loft?

Vivendi's hostile takeover in 2015 to 2016 severely impacted Game Loft. Vivendi acquired a majority stake, which led to the departure of key management, including Mitchell Gamo. This takeover marked a turning point as Vivendi shifted Game Loft's focus to modern gaming trends and microtransactions.

Why did Game Loft face financial struggles after 2014?

Game Loft struggled financially due to a combination of high investment in games without corresponding returns, competition from free-to-play games, and the inability to generate sufficient revenue from their premium games model. These factors led to dwindling profits and losses.

What happened to Game Loft's fan-favorite games during the decline?

Many fan-favorite games, such as Nova 3, were retired, and updates for older games were halted. This caused frustration among players who enjoyed those titles but saw a lack of continued support and compatibility with newer devices.

How did Game Loft adapt to the changing mobile gaming market?

Game Loft adapted by incorporating ads and microtransactions into their previously premium games. Games like Gangstar transitioned to a free-to-play model with these monetization strategies. However, these changes were not well-received by fans of the original games.

What impact did the rise of Chinese mobile gaming companies have on Game Loft?

The increased competition from Chinese companies like Tencent and NetEase, along with other large publishers like Activision and Ubisoft focusing on mobile games, further intensified the challenges for Game Loft. This crowded market made it harder for Game Loft to maintain its earlier success.

Despite the challenges, how is Game Loft performing today?

Although Game Loft has experienced a decline in revenue, its games still receive 1.5 million downloads every day, and over 70 million people play them monthly. Additionally, the company has branched into the PC platform with games like Disney Dreamlight Valley, which has seen success.