Recently, mobile gaming company Pocket Gems Inc released their revenue report for this past year claiming an earned income of $82 million dollars. This is the very first time the company has relinquished data on their finances but with numbers like that who wouldn’t mind leaking a chart or two.
Since its launch back in 2009, Pocket Gems has made substantial progress surpassing many of its competitors. Their first products pioneered the free to play mobile games industry. The company started out with the mission to become a global leader in the industry and they may very well be on that path. So far the company has experienced 32% year-over-year growth and maintains a staff of 175 employees. Two of their top titles Tap Paradise Cove and Animal Voyage: Island Adventure have received over 100 million downloads.
Most of the generated revenue derived from their games’ in-app purchases. CEO Ben Liu made a statement following the report indicating that the secret to their success was primarily focusing early on utilizing the free-to-play gaming model, with “very little advertising.”
In-app purchases are quickly becoming the biggest source of revenue in the mobile games industry due to the explosion of the freemium business model over past year. It will be interesting to see if it continues to boom as we progress in 2014.
Pocket Gems is planning on redirecting their games gameplay towards a live multiplayer style. They will be launching a new 3D engine for multiplayer games in coming months. CEO Ben Liu said, “ Pocket Gems is planning a couple of big releases soon” that are meant to prove its approach to two very important questions concerning the mobile games: “How does it mean to experience a story on mobile?” and “What does it mean to play with your friends on mobile?”
(Source: Techcrunch )