Should you buy King.com at their IPO?

James Surowiecki has an interesting take on the key question surrounding the King.com IPO: can they repeat their success with Candy Crush Saga?

Spoiler alert: his answer is no, citing the long history in games, movie studios, books, and virtually every other form of hits-driven entertainment. It’s incredibly difficult to repeatedly create successful entertainment franchises, and great new ideas tend to come from anywhere.

That said, King.com has a smart model for catching lightning if it happens to strike. They test lots of games on their website, looking for the right combination of user engagement and monetization that can produce another hit. If, and only if, those games show the right signs of life, they are built for mobile and aggressively marketed.

Sound familiar? It should, as it’s the strategy our Scouting Reports offer. They provide an inside look at the potential for a game to be the next Candy Crush Saga, by comparing your game’s stats to top grossing peers. Much like King.com’s approach, you should be ready to aggressively market great scoring games, or try to re-work games with lower scores.

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