Marketing Blog #5 – The Struggles of Browser Games

According to recent data, revenue from browser games in China have estimated to be 313 billion RMB in the first half of 2013, which is a growth of 4.1% compared to the previous year. It is not surprising then to find out that many game developers today face the same challenge struggling in the industry: they are unable to maintain enough profit to survive with their one or two well-known products in an oversaturated market.

Browser games are understood to have limited life cycles due to the advance in technology in our society and the competitive market. Therefore, rather than bringing in many new products every year and hoping to capture a small piece of the market share, it is perhaps more important to extend the product life cycle of these existing and recognized browser games that are already at their maturity stage. In order to do so, developers would need to frequently modify their games in order to provide new values that match the dynamic and unstable thoughts of customers. Since the game users are the only source of revenue, companies should focus on word of mouths to establish a positive image and increase customer familiarity in order to stand out among all competitors. They should also take in consideration of the long-term costs and benefits because companies often get trapped in the dead end of trying to capture more profit in the short run and neglect the fact that they need to improve the quality of their existing products.

Perhaps new trend will soon develop and people will eventually shift their focus away from games. However, as of right now, playing browser games are still many individuals’ favourite leisure activity across the world. Companies should seriously consider exploring new strategies of extending the life cycle of their current products and hope to once again, be the lead in the industry!

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