Alexandre Macmillan’s Post

View profile for Alexandre Macmillan, graphic

Product Management and Analytics | Mobile Games | Author and Speaker | PhD in Media studies

Fun article worth a read! I think it's super interesting to see the parallels between the feature film industry and the gaming industry. While sequels are definitely big on HD platforms, they're not as prevalent on mobile. Obviously game as service means that the lifecycle of a (mobile) game is not the same as a movie. And UA dynamics are clearly different. But part of me also feels there might be missed opportunities in the mobile space to double down on sequels more. https://lnkd.in/epPWKKyT

1 chart shows why Hollywood produces so many sequels

1 chart shows why Hollywood produces so many sequels

finance.yahoo.com

Amir D.

Head of Product @ Glowmade making KING OF MEAT!

6mo

I think there is a temporal attribution error in these kind of charts. The revenue of a sequel movie is attributed 100% to the sequel only, and so the costs. But in reality, you only got the reduced ROI on your marketing budget in the sequel because you invested in a much lower ROI for marketing on the first movie. So if the lesson from this is, invest in sequels before starting new IP, that's only a good strategy in a one shot game. The real strategic optimization is to look at each franchise with a cumulative cost and revenue curve, and decide which rate of change is the trigger to invest the next dollar in a new IP. Clearly there is an optimal exploitation / exploration ratio here. Like 80% in sequels, 20% in new IP.

Like
Reply

To view or add a comment, sign in

Explore topics