Close to the Edge, Down by the Water
Rapid cycles of development and rapid changes of business
model are now the norm in iPhone and mobile games. 3 to 6 month cycles, with
constant patching and upgrading in the released version mean a radical change
in the games environment. Much has been said about the technical and games
designs issues involved, but what about the cash flow?
Cost curves
Low during design
Middle size during production
High at release and marketing
Low during in field metrics and patching
Risk curves
Risk is low at design
High before release
Low after release
Income curves
None before release now (no distributor up fronts)
Lots in 3 months after release
A little for the long tail
In a nutshell: by bringing release closer to innovation, and
bringing monetisation closer to release, iPhone, social gaming, and mobile
games apps have radically de-risked the cash flow of games companies. Now that
is something we can all applaud and learn from!
davidjwbailey dot com 