Challenges for Mobile Game Studios in Web2
In some way the challenge remains the same - how do you acquire players more cost efficiently and increase play time and revenue per player?
You also have what the industry calls "walled gardens": Giant centralised ad businesses who control billions of dollars at ad spend. This centralised model means certain business can make changes that send ripple effects throughout the industry, and whilst often players best interests are put at the centre of these announcements. Ultimately these decisions benefit one entity only, the business making these changes. What is the benefit in terms of utility or any commercial upside for players?
One of the big changes that happened was the roll out of iOS 14.5 by Apple.

ATT and its impacts

Player acquisition got significantly harder by privacy regulations, specifically ATT from Apple - which meant, quite simply, it got a lot harder to identify who players were, which limited the ability to effectively monetise and retain players. As Apple gave players the ability to opt out of ad tracking before playing a game .
The App Store is designed to be a safe and trusted place for users to discover apps created by talented developers around the world. โ€ฆ And starting with iOS 14.5, iPadOS 14.5, and tvOS 14.5, youโ€™ll be required to ask users for their permission to track them across apps and websites owned by other companies. โ€“ User Privacy and Data Use from Apple

As a result of ( and also in anticipation) of these changes, these events became prevalent:

1. Sparked a series of M&As:
Games studios and publishers sought to bring in 1st party data. For example Zynga acquired Rollic - leading hyper casual publisher and also Chartboost ( monetisation platform) to effectively built out its own ad network, to better monetise its existing game and also to create its own walled garden.
2. Diversified revenue streams:
Roman Garber, Marketing Director at Leading mobile attribution platform said"
"In the era of privacy-first marketing, diversified revenue streams are a must, which is why our survey shows 99 per cent of the mobile games advertisers in our survey planned to spend in alternative Android ecosystems. I expect those game publishers that figure out how to use them effectively will reap greater rewards in the medium term" ( source PocketGamer)
Why isnt every mobile games studio making a blockchain or web3 game?
As discussed earlier there are both technical and financial barriers to web3 games.
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ATT and its impacts