David Taylor’s Post

💸 The State of UGC Games 2024: Developer Payouts 💸 Sharing the key highlights from the mega-report I just published on Naavik: 🤑 Total developer earnings reached $1.32 billion in 2023 - Collectively, across Roblox, Fortnite, Minecraft, The Sims, GTA V, Zepeto, Rec Room and more, we saw a substantial increase in UGC developer earnings. - Roblox is the largest contributor: $735 million in developer payouts + $60 million in commissions from brand activations in 2023. 📈 Developer payouts collectively increased by 30% - Fortnite was the largest contributor to growth with $204 million in developer payouts, a 300% increase from the year before. - Roblox followed closely behind in terms of growth contribution with an $141 million or 21.5% increase in earnings for developers. 👷 There were an estimated 7.3 million creators building UGC games in 2023. - Roblox contributed the largest portion of that total with 5.6 million, up from 4.2 million the year before - a 33% increase. - Meanwhile, Fortnite has the smallest creator community with 12,500, but that also means they boast a whopping $20,000 per creator. 💥 Takeaway: Developers are historically the scarcest resource in UGC games, but the massive increase in UGC game developers and the associated payouts means the UGC games segment is poised to capture an increasingly substantial portion of games engagement, if not market share, in 2024. *** Thank you to Overwolf for sponsoring this C-suite worthy report and enabling the gaming community to access it for free through Naavik. Link to the full report in the comments! I’ll be sharing key highlights from the full length report over the next few weeks. Be sure to follow me to not miss the best insights.

🚨 Kaedim3d.com is HIRING 🚨 Send resumes to recruiting3d@kaedim.com Image: Lego, Epic Games Epic Games is once again bolstering its user-generated content strategy Epic Games is launching a set of tools for Unreal Editor for Fortnite that’ll let players create their own Lego Fortnite islands. Epic and Lego announced the tools during the Game Developers Conference in San Francisco on Wednesday. A bunch of Lego assets are now available within the Unreal Editor for Fortnite, alongside four templates to play with. Additionally, Lego has also created three of its own Lego Fortnite islands: Lego Prop Hunt, a Lego take on the hide and seek-esque prop hunt set in a shopping mall; Lego Battle Arena, a Ninja-themed competition; and Lego Cat Island Adventure, an island where you’re tasked with taking care of a sweet little cat. Everything built in Lego Fortnite must have an ESRB rating of E10+ or PEGI 7 — basically, they’ve got to comply with Lego Fortnite’s family friendly rules. These are in addition to Lego Raft Survival and Lego Obby Fun from February. “Today’s announcement is a hugely important step in us democratizing creativity and putting the power of the LEGO brand into creators’ hands like never before,” Lego Game head of play and creator growth Kari Vinther Nielsen said in a statement. “We want kids and families to be able to enjoy a whole host of fun and engaging play experiences within Fortnite, and the potential this news offers for creators is incredibly exciting — we can’t wait to see what everyone builds and how much the community enjoys the creations.” Lego Fortnite went live in late 2023 and has continued to grow since then, part of of Lego’s $1 billion investment into Fortnite maker Epic Games. Though Fortnite has millions less players than Roblox — 70 million to 250 million players, respectively — Epic is aiming to be the next leader in user-generated content. Giving players the ability to create their own games and experiences means Fortnite, like Roblox, is more than just a game. It’s a platform. To incentivize players to create on Fortnite, Epic gives 40% of its net revenues back to creators in what it calls “Creator Economy 2.0.” Epic issues payments based off “popularity, engagement, retention, [and] attracting new players,” Epic executive vice president of Fortnite Saxs Persson said in 2023. Epic and Lego’s investment into user-generated content for Lego Fortnite is another serious push into taking on the likes of Roblox and Minecraft, and perhaps, a sign of what’s to come in the future — more overall industry investment in a new way of creating. Adopt Me creator and Roblox developer Josh Ling told GameDiscover.co in May 2023 that the wider video game… ⭐ The world's best game studios ship 7x faster with Kaedim3d.com - try it today to turn sketches into game assets in minutes #gdc #gdc2024 #a16z #MobileGames #Gamers #gamedev #GameDesign #VideoGameDevelopment

🌐 What is hybrid-casual genre? 🚀 The popularity of hybrid-casual games has been on the rise in recent years, thanks to the proliferation of mobile gaming and the increasing accessibility of gaming to a broader audience. As a result, many game developers have turned to creating hybrid-casual games to tap into this growing market. Hybrid-casual games are a combination of different game genres, typically blending elements of puzzle, strategy, and adventure games.  Hybrid-casual games first started appearing in 2019, with games such as Archero, a role-playing action game (RPG), pioneering hybrid-game success after earning $8.5 million in revenue in its first month. Hybrid-casual games are a mix of different game genres and elements. These games often have more complex gameplay and graphics than hyper-casual games, and they may include details such as RPG (role-playing game) mechanics and story-driven gameplay. One key difference between the two types of games is the level of engagement they require from players. Hyper-casual games are typically designed for short, quick play sessions, while hybrid-casual games often require more time and attention from players. Hybrid-casual may take over the throne from hyper-casual games, but it should not be considered as a replacement. Details: https://lnkd.in/dhx9z9VG #strategy #gaming #hybridcasual #hypercasual #hypercasualgames #hybridcasualgames #gameindustry #midcoregames #growth

🕹️ Game Industry Insight: Hyper-Casual 2023 Analysis Discover the latest trends and insights in the hyper-casual gaming market for 2023. Uncover the challenges and opportunities for developers, with expert analysis from Azur Games. Here are some of the key takeaways from our full blog article (link in the comment below) 1. Hyper-casual gaming is transforming as we enter 2023, with new games finding it increasingly challenging to stand out from the competition. 2. Comparing Q1 2023 to Q4 2022, there has been a 5% decrease in total hyper-casual game downloads. The market has also experienced a regional split, with the Tier-1 East region seeing a 15% increase. 3. The hyper-casual genre is not dead, and it is evolving into a hybrid-casual environment. Several familiar titles are still among the top 10 downloaded games in Q1 2023, and 2022 contributed 18% of the top 300 games based on downloads. Installs and monetization for idle arcade games have increased over the past two years, indicating growth despite competition. Hyper-casual shooters show promise, but scaling and maintaining a good flow of content and game design present challenges. 4. Monetization practices for hyper-casual games are changing as user behavior changes and large advertisers reduce their ad spend. Developers must focus on improving games' LTV to maintain profitability. 5. Competition in the gaming industry is intense, particularly within the hyper-casual segment. Major publishers are increasingly focusing on mobile platforms, and even non-gaming companies are entering the arena by acquiring mobile game development studios. 6. In 2022, TikTok emerged as a significant ideation platform for game concepts and creative strategies, and it is expected to continue. Additionally, TikTok and Youtube Shorts also appeared as tough competitors to hyper-casual game 7. The hyper-casual market presents challenges and opportunities for game developers, who need to come up with innovative game designs and employ effective marketing strategies to stand out. 8. The hyper-casual gaming market is evolving, and developers must adapt to changing trends and user preferences to stay relevant. Understanding the competitive landscape is pivotal for success. #gamingindustry #gaming #games #mobilegames #gamedeveloper #hypercasual #gamedevelopment #insights #hypercasualgames #industryanalysis

🚨 Kaedim3d.com is HIRING 🚨 Send resumes to recruiting3d@kaedim.com Image: Lego, Epic Games Epic Games is once again bolstering its user-generated content strategy Epic Games is launching a set of tools for Unreal Editor for Fortnite that’ll let players create their own Lego Fortnite islands. Epic and Lego announced the tools during the Game Developers Conference in San Francisco on Wednesday. A bunch of Lego assets are now available within the Unreal Editor for Fortnite, alongside four templates to play with. Additionally, Lego has also created three of its own Lego Fortnite islands: Lego Prop Hunt, a Lego take on the hide and seek-esque prop hunt set in a shopping mall; Lego Battle Arena, a Ninja-themed competition; and Lego Cat Island Adventure, an island where you’re tasked with taking care of a sweet little cat. Everything built in Lego Fortnite must have an ESRB rating of E10+ or PEGI 7 — basically, they’ve got to comply with Lego Fortnite’s family friendly rules. These are in addition to Lego Raft Survival and Lego Obby Fun from February. “Today’s announcement is a hugely important step in us democratizing creativity and putting the power of the LEGO brand into creators’ hands like never before,” Lego Game head of play and creator growth Kari Vinther Nielsen said in a statement. “We want kids and families to be able to enjoy a whole host of fun and engaging play experiences within Fortnite, and the potential this news offers for creators is incredibly exciting — we can’t wait to see what everyone builds and how much the community enjoys the creations.” Lego Fortnite went live in late 2023 and has continued to grow since then, part of of Lego’s $1 billion investment into Fortnite maker Epic Games. Though Fortnite has millions less players than Roblox — 70 million to 250 million players, respectively — Epic is aiming to be the next leader in user-generated content. Giving players the ability to create their own games and experiences means Fortnite, like Roblox, is more than just a game. It’s a platform. To incentivize players to create on Fortnite, Epic gives 40% of its net revenues back to creators in what it calls “Creator Economy 2.0.” Epic issues payments based off “popularity, engagement, retention, [and] attracting new players,” Epic executive vice president of Fortnite Saxs Persson said in 2023. Epic and Lego’s investment into user-generated content for Lego Fortnite is another serious push into taking on the likes of Roblox and Minecraft, and perhaps, a sign of what’s to come in the future — more overall industry investment in a new way of creating. Adopt Me creator and Roblox developer Josh Ling told GameDiscover.co in May 2023 that the wider video game industry… ⭐ The world's best game studios ship 7x faster with Kaedim3d.com - try it today to turn sketches into game assets in minutes #gdc #gdc2024 #a16z #Games #GameNews #GameDevelopment #GameDesign #Blender

🚨 Kaedim3d.com is HIRING 🚨 Send resumes to recruiting3d@kaedim.com Image: Lego, Epic Games Epic Games is once again bolstering its user-generated content strategy Epic Games is launching a set of tools for Unreal Editor for Fortnite that’ll let players create their own Lego Fortnite islands. Epic and Lego announced the tools during the Game Developers Conference in San Francisco on Wednesday. A bunch of Lego assets are now available within the Unreal Editor for Fortnite, alongside four templates to play with. Additionally, Lego has also created three of its own Lego Fortnite islands: Lego Prop Hunt, a Lego take on the hide and seek-esque prop hunt set in a shopping mall; Lego Battle Arena, a Ninja-themed competition; and Lego Cat Island Adventure, an island where you’re tasked with taking care of a sweet little cat. Everything built in Lego Fortnite must have an ESRB rating of E10+ or PEGI 7 — basically, they’ve got to comply with Lego Fortnite’s family friendly rules. These are in addition to Lego Raft Survival and Lego Obby Fun from February. “Today’s announcement is a hugely important step in us democratizing creativity and putting the power of the LEGO brand into creators’ hands like never before,” Lego Game head of play and creator growth Kari Vinther Nielsen said in a statement. “We want kids and families to be able to enjoy a whole host of fun and engaging play experiences within Fortnite, and the potential this news offers for creators is incredibly exciting — we can’t wait to see what everyone builds and how much the community enjoys the creations.” Lego Fortnite went live in late 2023 and has continued to grow since then, part of of Lego’s $1 billion investment into Fortnite maker Epic Games. Though Fortnite has millions less players than Roblox — 70 million to 250 million players, respectively — Epic is aiming to be the next leader in user-generated content. Giving players the ability to create their own games and experiences means Fortnite, like Roblox, is more than just a game. It’s a platform. To incentivize players to create on Fortnite, Epic gives 40% of its net revenues back to creators in what it calls “Creator Economy 2.0.” Epic issues payments based off “popularity, engagement, retention, [and] attracting new players,” Epic executive vice president of Fortnite Saxs Persson said in 2023. Epic and Lego’s investment into user-generated content for Lego Fortnite is another serious push into taking on the likes of Roblox and Minecraft, and perhaps, a sign of what’s to come in the future — more overall industry investment in a new way of creating. Adopt Me creator and Roblox developer Josh Ling told GameDiscover.co in May 2023 that the wider… ⭐ The world's best game studios ship 7x faster with Kaedim3d.com - try it today to turn sketches into game assets in minutes #gdc #gdc2024 #a16z #GameIndustryUpdates #GameDevCommunity #VideoGameDevelopment #Blender #Gamers

I've come to believe that, relative to share, PvP games have peaked and what gamers will increasingly crave are immersive PvE experiences. This shift reflects a broader desire for immersive, cooperative, and community-driven gaming experiences, categorized in four areas: 1) Single-player adventures by industry giants like Sony and Nintendo have set high standards for narrative depth and immersive gameplay. These experiences offer more than mere task completion, providing stories where players are the protagonists in vast worlds rich with lore and mystery. On the indie scene, numerous immersive single-player games, such as Dredge and Sea of Stars, have found success over several years. Titles like Baldur's Gate 3 have effectively blended single-player with cooperative multiplayer experiences. Despite views that these indie titles cater to a niche market and don't sell as many copies as the biggest AAA games, I argue that more breakthrough titles in similar genres will emerge, akin to Baldur's Gate 3's incremental success after years of refinement by Larian. 2) Multiplayer experiences, led by games like WoW, have set precedents for PvE content with dungeons and raids requiring both individual skill and coordinated team play. Features like dungeon runs with bots have made multiplayer experiences more accessible for solo play, catering to those who prefer PvE content independently. Blizzard's introduction of content like Delves for players not interested in raiding or PvP, following innovations by games like Final Fantasy XIV, demonstrates a growing demand for solo and more intimate cooperative play that is even more PvE-like and less competitive. Titles lacking sufficient breadth and quality of PvE and campaigns in this space increasingly face criticism and realize that just the PvP loop often won't cut it. 3) Community-centric platforms like Roblox, Minecraft, and Fortnite epitomize the demand for community-driven PvE experiences. These titles merge game creation with gameplay, allowing players not only to engage in PvE adventures but also to design their own. This fosters a sense of belonging and creativity as players build and share experiences, integrating the community into the PvE experience. 4) Additionally, there's a significant segment of gamers who prefer lighter, solo games, ranging from puzzles and word games to cozy games and more. Many incorrectly overlook these gamers as part of the traditional gaming community. Yet, their engagement in gaming is just as valid and significant. In essence, I believe the gaming landscape will increasingly favor experiences that unite players against the game's challenges rather than pitting them against one another. This trend towards PvE, cooperative gaming, and inclusive definitions of gaming highlights a broader desire for connection, collaboration, and shared experiences in the digital realm, providing players with not just games to play, but worlds to be a part of.