Tag Archive revenue rankings

Netmarble Games IPO: A Fast Fade for Lineage 2?

Lawrence Abrams No Comments

Introduction

Netmarble is the largest mobile game publisher in South Korea.

The company has just secured investor commitments to buy 16.9 Million shares worth $2.3 Billion in a May 2017 IPO on the Korea KOSPI stock exchange.  

This IPO would value the company at $11 Billion based on investor demand at the high end of the offer range of $138 USD / share (or 157,000 Korean Won / share)

This is a very big deal. It would be the largest IPO on the Korean exchange since 2010 and second largest tech IPO in the world in the last two years after Snap and ahead of Line.

We will show in detail below that this is a highly speculative IPO, even for mobile game companies who are often dismissed by investors as being one hit wonders.

This IPO is unlike the disappointing mobile game IPOs of King Digital Entertainment in 2014 and Zynga in 2011 where both companies had enough audited numbers in their S-1s to suggest that their best days were behind them.

On the contrary, Netmarble’s best days are ahead of them.  But, investors are insane to give this company such a lofty valuation based entirely on unaudited revenue numbers of a single new game launched only four months ago.

We will present evidence hinting that early annualized revenue run rates (ARR) for the game have slipped noticeably in March 2017 — the third month since launch.  We predict that once investors realize this, the stock should drop 30+% from its expected IPO price.

Evidence of a Drop-off in ARR

On December 13, 2016 Netmarble launched a mobile role-playing game called Lineage ll: Revolution  (L2R) based on licensed IP from NCSoft’s legendary PC game Lineage. According to app analytics company App Annie, the game immediately rose to #1 on the S. Korean iOS Apple revenue rank charts and has remain so to this day.

 

 Just because L2R has remained ranked #1 on the S. Korean charts for the past four months, and likely will continue to do so for months, it is still possible that ARR has declined by $100s of Millions since release.

This is because there is a severe power function relation in the mobile game industry between ARR and revenue rank. Typically, at the top of the USA charts, there can be a $600 Million ARR difference between the #1 and #2 ranked game, say $2.2 Billion ARR for #1 and $1.6 Billion ARR for #2.

For example, below is a power function we derived in an earlier paper on the Netmarble IPO for top ranked games on USA iOS app store.

For the S. Korean chart now, it is conceivable that the gap between #1 ranked L2R and the #2 ranked Everybody’s Marble, also by Netmarble published on Kakao, could be $700 Million or more.

In January 2017, Netmarble told the Korean press L2R generated $176.6 Million in revenue between mid-December 2016 and mid-January 2017. That translates into $2+ Billion ARR.

Obviously, a $2 Billion ARR is not sustainable for the full year of 2017. This is because TOTAL Korean game revenue (mobile + console + PC) was only $4 Billion in 2016, according to Newzoo.

Netmarble has not made any official full year forecasts for L2R nor for the company as a whole. We do know that official 2016 revenue for the total company was $1.34 Billion.

In March 2017 analysts covering the company told The Korea Times  that they expect revenue to double to $2.7 Billion, largely based on the early success of L2R.  Assuming organic growth of around 25%, this implies that the 2017 forecast for L2R would be around $1 Billion.

We present two pieces of evidence that even a $1 Billion in total revenue for 2017 is unlikely.

The first piece of evidence is an App Annie trend chart showing L2R download rank. Note that while L2R was ranked #1 in downloads for the first month since release, downloads have steadily dropped below #30 by late March 2017.  

It is doubtful this drop off was caused by a drop off in advertising by Netmarble.  It is more likely due to a lack of strong word-of-mouth by early players that this is a great game.

The other piece of evidence of a drop off in ARR comes from a monthly summary report put out by SuperData listing the top grossing mobile games globally for that month.  

For February 2017, SuperData reported L2R was the top grossing game globally.  But, for March, it reported that L2R dropped to #10 (See below)

 

 

Valuing Netmarble Based on Realistic Expectations for L2R

As we stated earlier, Netmarble’s IPO is scheduled for May 2017.  Investors have already committed to buying 16.9 Million shares at the top end of the offering range of $138 USD / share or 157,000 Korean won / share.

This values the company at $11.7 Billion.  Dividing that valuation by analysts forecasts for 2017 revenue of $2.7 Billion,  we arrive at valuation of 4.3 time forward ARR.  This ratio enables comparisons with  market-derived valuation ratios of publicly-held companies. 

For example, in another paper of ours on the Netmarble IPO,  we derived a valuation ratio for Com2uS of 2.61.  Com2uS is a Korean-based mobile game company listed on KOSPI exchange.   Com2uS is much better known than Netmarble due to its global hit mobile game Summoners War.  

While Com2uS is growing slower than Netmarble, its future sales are more predictable. Based on this comparison, we concluded that Netmarble’s IPO was overpriced by 26%.

In the spreadsheet below,  we also break down Netmarble’s 2017 overall revenue growth forecast into estimates of organic growth versus new sales from L2R — which we peg at $1 Billion.

 

 The final spreadsheet presents “what if?” analysis of Netmarble’s value and stock price  if more solid evidence starts showing up indicating that L2R’s 2017 ARR will be closer to $600 Million than $1 Billion.

Note that when revenue forecasts are significantly cut back, there is usually a corresponding compression in valuation ratios.  So, we built into our “what if?” analysis a compression of Netmarble’s valuation ratio from 4.3 to 3.5 times forward ARR.  

Official sales figures will start coming from Netmarble a month or so after the end of its 2Q17 quarter in June 2017.  We expect management to guide 2017 revenue well short of initial forecasts of $2.7 Billion due to L2R’s ARR well below $1 Billion.

The stock should fall well below IPO prices.  We predict a decline on the order of 33% by July or August 2017.

Relating App Store Revenue Rank to Revenue

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From two of my recent Quora posts:

Question: How much money does the average mobile game make?

There are tons of games on the App Store and Google Play. Everyone seems to know about the hit games. How much revenue does the run-of-the-mill game generate? Is the revenue curve steady and flat? Do some genres do much better than others?

My answer:

Question should be rephrased:

How much money does the MEDIAN revenue rank game make.. ie game with revenue rank 100,000 out of about 200,000+ on iOS Apple US?

Answer: near zero.

Relation between mobile game revenue and revenue rank is a severe power function, more severe than the bookstore relation estimated 10 years ago and used to justify “long tail” inclusiveness in online stores.

I have estimated that top 10 revenue rank games derive 50% of revenue whereas the “long tail” of mobile game revenue ranks — games ranked 10,001 – 200,000+ derive only 5% of revenue. Long tail here is far smaller than books where revenue rank books 10,001 – 200,000 derive 30% of revenue.

To go back to the first question, I have a more precise answer. I have estimated that the trailing 12 month global mobile game revenue, less 30% cut from Apple and Google is $11.2B. Mobile game long tail — games ranked 10,001 to say 200,000 get 5% or $560M. Divide that by # of games in long tail — 200,000 – 10,001 = 189,999 560,000,000/198,999 = $2,847 is the AVERAGE yearly revenue of a mobile game in the long tail– with revenue rank > 10,000.

Question: How can you estimate the revenue of a mobile app based on its revenue rankings in App Annie?

There should be an exponential drop off, so if someone has done a study with a few data

My answer:

It is a power function with an upward kink at game rank #3-4

mapping update
As far as games, these are my current estimated revenue run rate after 30% store cut worldwide on iOS and Google (note portion of revenue is 4:1 iOS to Google)

Big 3 — what I call the “and, of, the” of a Zipf power function.

Clash of Clans $1.8B (Supercell)
Puzzle and Dragons $1.6B (GungHo Online)
Candy Crush Saga $1.0B (King)

Next 7
Monster Strike $900M (Mixi)
Game of War: Fire Age $600M (Machine Age)
Brave Frontier $400M (Alim/gumi)
Hay Day $400M (Supercell)
Farm Heroes Saga $350M (King)
Battle in Warring Games $200M (Sumzap)
Pet Rescue Sage $175M (King)

Top 10 World Wide Mobile Games by Revenue Rank receive estimated 50% of mobile game app store revenue >>> $6.5B out of $11B

In contrast, I have estimated “long-tail” of mobile game app store revenue — games ranked 10,001 + to 240,000 receive around 5% of revenue.

This is a lot less that the original “long tail” estimates for book sales of book ranked 10,000+ of around 30%

Not much loss in cutting out the “long tail” in mobile games on the app store in return for great gain in app store discovery and quality of merchandise.

RIP Long Tail Justification for Online Store Inclusiveness: 2004:2014

Kabam: Mobile Gaming Company IPOs after King and Zynga

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Click here to download the Permalink.

Kabam is a San Francisco-based mobile gaming company with three hit games each of which has reportedly grossed over $100 M since launching.  In a recent interview with the Wall Street Journal, Kabam’s CEO Kevin Chou disclosed that

“Kabam has raised $125 million from investors including Canaan Partners, Redpoint           Ventures, Intel Capital, Pinnacle Ventures, Google Ventures and SK Telelcom                     Ventures. The company increased revenue 100% to more than $360 million in 2013           and expects to generate between $550 and $650 million in 2014.”

Chou said that it “is still gunning for an IPO despite King Digital Entertainment’s (KING) disappointing debut”.

A similar sentiment might have been elicited a year ago from King Digital’s CEO to the effect that King was gunning for an IPO despite Zynga’s (ZNGA) disappointing debut in 2011.

The US mobile gaming industry cannot afford another disappointing IPO.

I am a fan of the US mobile gaming industry. I think the long term prospects are bright. But, the industry has a problem. The problem is NOT that the financials are hit-driven and spiky. The problem is a bad track record of pricing and timing of IPOs.

Right now Kabam and Palo Alto-based Machine Zone are two mobile gaming start-ups with hit games and yearly revenue run rates exceeding $500M. Both are very profitable and deserve to go public.

Like King, these two very successful start-ups are sitting on plenty of cash — estimated at roughly $200 M to $300 M each — generated from these hits. The need for an IPO is not for working capital or even for acquisitions.  The need is to provide liquidity to existing investors and employees with stock options.

There are important lessons from the disappointing IPOs of King and Zynga to be considered ahead of the next IPO:

(1) Don’t price (buy) a mobile gaming IPO at much more than 2 time trailing price-sale ratio.

(2) There is a small window to go public (buy into) successfully. It is between month 4  and month 7 during which a hit game is consistently among Top 10 on the iOS Apple store US revenue ranking charts.

The purpose of this article is to present data and charts supporting these two lessons. First, we present a comparison of IPO and current trailing price-sales (P/S) ratios of King and Zynga.

Trailing PS

(Source King F-1 and Zynga S-1)

King went public at the pinnacle of success of its “Billion Dollar Club” game Candy Crush Saga. At the time of its IPO in early March 2014, its Q/Q revenue was flat for 2 quarters.

Zynga went public on the cusp of the transition from PC browser-based games accessed from Facebook to native smartphone games downloaded from app stores. Its stock has dropped 66% since the IPO, caused by the multiplicative effect of declining revenue and a declining P/S ratio.

Based on these two disappointing post-IPO performances, I believe that the next mobile game company IPO should be priced with a reasonable assurance of stock appreciation post-IPO. It should be a win-win, not a win-lose transaction between existing and new investors.

The current trailing P/S ratio of King is 2.23. I think that 2.23 is a win-win standard for pricing the next mobile gaming IPO.

The Wall Street Journal reported that in July 2013, Kabam employees sold $38.5M worth of stock in a private transaction that implied a $700M valuation for the company. According to the Wall Street interview cited above, Kabam estimates that its 2014 revenue will be between $550M am $650M. (We peg it at the low end due to the declining revenue trend in its latest hit game The Hobbit: Kingdoms of Middle-earth.)

Priced reasonably at King’s current P/S ratio of 2.23 and a current yearly revenue run rate of $550M, Kabam’s IPO value would be $1.23B, up nicely 75% from the previous valuation 2013.

A more reasonable pricing of an IPO is not enough. Timing of the IPO matters. The rising revenue trajectory of a hit game is not likely to last beyond 12 months. And while great gaming companies like Kabam, Machine Zone, King, and Supercell have demonstrated an ability to launch multiple hits, the launch dates are often a year or more apart. Mobile gaming companies have just one small window a year to go public.

We review first the timing of the King IPO in light of the disclosed financials in it pre-IPO SEC filing summarized below:

screen shot 2014-02-18 at 6.59.53 am

(Source King F-1)

People were horrified when they first saw this graphic depicting flat Q/Q revenue just before the IPO in March 2014. There was a sense of impending doom. And sure enough the stock dropped 16% the day of the IPO.

In hindsight, the time for King to do their IPO would have been in 2Q2013 (June-August) giving management and IPO investors a full 6 months of rising financials.

Before I evaluate the best time for a Kabam IPO, we need to present the results of an one of my earlier papers where I estimated the relation between a specific game’s revenue ranking on app store charts and its dollar revenue. I use revenue ranking charts for iOS Apple Store in the US which are available for free from App Annie.

Occasionally, publicly held companies like King (for the Saga series) and Glu Mobile (for Deer Hunter 2014) have reported quarterly revenues for specific games. This allows an exact correlation with the App Annie revenue rank at the time. Below is a depiction of the Zipf-like power function relation between app store revenue and revenue rank for 4Q2013 with 4 actual data points:

Power Function

Looking ahead to Kabam’s prospective IPO, we believe that it would be best for them to do it when they have a Top 10 hit on the rise. This would give them at least one game with a rising quarterly run rate of $50M or a yearly run rate of $200M.

Kabam seemed to have an amazing window to go public between January and April 2013. It had not one, but two Top 10 hits: Kingdoms of Camelot: Battle for the North at the pinnacle of its success and a rising star in The Hobbit: Kingdoms of Middle-earth. The Hobbit was just cracking the Top 10 at the end of the window in April 2012.

Kabam’s run’s rate in 1Q2013 was at least $100M. And there was some significant revenue upside post-IPO. Of course, no one knew for sure during 1Q2013 that the rest of 2013 would be so good for Kabam. But, a mobile game that cracks the Top 10 and stays there for 4 month is a sign of some “addiction” and I think that Kabam executives and board members knew that 2013 would be year of rising financials.

Trailing revenue by Kabam’s own account was around $180M for 2012. Valuation of the hypothetical IPO at our recommended 2.23 P/S would have only been only $400M.

Remember, the above the reference to an actual private sale in July 2013 valuing the company at $700M. Assuming a trailing revenue run rate at the average of 2012 and 2013 = (360+180)/2 = $270 M,  the implied trailing P/S at the time of this private transaction was only 2.59 — greater than my suggested standard of 2.23, but less than King’s later IPO value of 3.76.

Maybe, it was premature for Kabam to go public in 1Q2013 with such a good year ahead of itself in 2013.

But, those venture capitalists, employees with stock options, and IPO investors would be holding stock in a company with rising revenue and profit throughout 2013. Trailing revenue at the end of 2013 would have been $360 M. With an increasing post-IPO P/S of, say 3, Kabam would have been valued at $1.08 B by the end of 2013.

Kabam management and board would have been celebrating New Year’s 2014 with a bunch of happy stockholders and employees as the stock would have appreciated 250% post-IPO. And importantly, stockholders would have the liquidity to reduce their holding  if they had a bad feeling about King IPO later in 2014.

Alas, Kabam missed a great window of opportunity to go public between January and April of 2013.

It is easy to second-guess management and the board.  The big negative at the time was the performance of ZNGA’s stock post-IPO.  The stock went from an IPO price of $10.00 in November 2011 to a high of $14.50 in March 2012 only to fall 86% during 2012 to a low of $2.09 in November 2012.  Ouch!

Maybe as a consolation for missing a golden (bears) opportunity, Kabam’s 4 cofounders – all UC-Berkeley alumni, paid the University $18M in December, 2013 for stenciling a big KABAM on the gridiron at Memorial Stadium.

Furthermore, as the charts show below, Kingdoms of Camelot has continued to fade and now is only a Top 50 game. The Hobbit has remained amazingly strong, but shows just enough fade this past month to suggest that the IPO window has closed for Kabam in 2014.

Not to worry, Kabam still has plenty of cash and cache. Its management can see the Kabam name on the Cal football field as they watch their beloved Bears get crushed once again. So what, they are living proof that the industry is not plagued by one-hit wonders.

If Kabam’s existing investors are impatient for an IPO, Kabam has plenty of cash from its hit games to pay millions in dividends.   King did this did this before its IPO, paying out $500 million in dividends in the style of a private-equity dividend recap.

And, it was last week that the Wall Street Journal  reported  that Kabam has struck a deal with Lions Gate to develop mobile games based on the hit movie “Hunger Games”.

It is likely that the next big Kabam hit will be launched in conjunction with the 3rd installment of the Hunger Games scheduled for release in November 2014.  Given their track record for developing hits, I expect a Kabam IPO in 1Q2015.

Kingdoms of Camelot: 2013

Kingdoms of Camelot 2013 Battle for the North ®   Rank History   App Annie

The Hobbit: 2013

The Hobbit  Kingdoms of Middle 2013earth   Rank History   App Annie

 Kingdoms of Camelot: January – May 2014

Kingdoms of Camelot 2013 Battle for the North ®   Rank History   App Annie

 The Hobbit: January – January – May 2014

The Hobbit  Kingdoms of Middle 2013earth   Rank History   App Annie

Monument Valley: Artistic Success and Business Model Failure

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MV Pix from MV Blog   MV pix from MV Blos 2
(Source: ustwo)

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On April 3, 2014, the design studio ustwo released a much anticipated paid puzzle game called Monument Valley (MV) for iOS  Apple app stores worldwide.

“Ecstatic” is the best word I can think of to describe the response to the game’s visuals.

But, based on initial download and revenue ranking data provided app store data analytics company App Annie, I believe that the game will not generate enough app store revenue to be profitable.

As a result of the wide gap between the game’s critical and financial success, I question ustwo’s choice of a paid, rather than a tasteful freemium, business model. In fact, I question why any mobile game developer today still would use a paid business model over a free-to-play (ftp) with in-app purchases.

When ustwo began development of the game 10 months ago, the choice between paid and ftp for a mobile game might have been a debatable question. But, since a widely quoted App Annie and IDC report that came out in March 2014, the debate seems over. They found that in 2013 in-app purchases based on a ftp model accounted for 92% of purchases, while 4% came from paid apps and 4% from a blend of ftp and paid.

A blog post by the lead designer and visionary, Ken Wong, in the weeks before release of Monument Valley communicated clearly the design aesthetics behind the game:

“My hope for Monument Valley is that it might contribute to the argument that the medium of entertainment we call video games is in fact art.

What does it mean for video games to be described as art? It means recognizing games as a medium of expression, a medium through which we can deliver moving experiences and convey ideas to each another. It means games have cultural significance – that through them we can understand some small part of what it means to be a living, loving, dying, feeling, and thinking being.”

Even MV’s tag line smacked of high art:

An illusionary adventure of impossible architecture and forgiveness

The game has been an overwhelming critical success. The influential Wired magazine blog said:

“The easiest way to describe Monument Valley released today on iOS for $4.00 (with an Android version coming soon) is as something like an interactive version of an M.C. Escher print.”

“The temples are bedecked with arcades, corridors, parapets and onion domes. They’re beautiful, like a good piece of graphic design, and exquisitely constructed, like a Swiss watch. It’s a case where the aesthetic pleasure of how the game looks and the visceral feeling of how it operates are not just in perfect agreement but one in the same.”

The trailer for this game on YouTube quickly registered over 200,000 views with glowing comments.

There was a 5 star rating and game of the week by TouchArcade; Polygon gave it a 9/10; PocketGamer gave it 9/10 and Gold Award. There were glowing write-ups in The Verge, Tech Crunch, Buzzfeed, Kotaku and more.

The game even elicited an approving nod from my favorite Big Picture blogger, venture capitalist Benedict Evans of a16z.

The only serious criticism of the game was that the full run-time experience  was too short at 1 to 1 1/2 hours.

In April, I wrote several articles for Seeking Alpha on the financial prospects of King Digital (KING) and Glu Mobile (GLUU) based on App Annie download and revenue ranking data. Given MV’s pre-release hype,  I thought I would be interesting to do a post-release follow-up look at how it did according to App Annie.

For about a year now, there has been publicly available data provided by App Annie that track daily app store downloads and in-app purchases of mobile gaming companies. (Disclosure: I have not received any remuneration from App Annie.)

With a free account, you cannot download any data. But, you can take screenshots of graphs of daily rankings (1-1000) of mobile games by downloads and revenue where revenue is the sum of download revenue + in-app purchases. These graphs can be filtered by app store – Apple Store, Google Play, and Amazon – by mobile game type, and by country.

App store data does not include revenue from advertising. But, mobile games created by professional studios tend to be paid or free-to-play (ftp) with monetization via in-app purchases of addicted players. Hit Indie games created by individuals like Dong Nguyen’s Flappy Bird or Wen Zeng’s Piano Tiles still tend to be ad supported. But I noticed that even ad=supported Piano Tiles offered a simple opt-out-of-ads option for $.99.

App Annie tracks 400,000+ apps, mostly mobile games, for developers who allow their app store data to be tracked. The graph between revenue (Y-axis) and App Annie revenue ranking (X-axis) is a very, very long tail.

Below is our first attempt at estimating this relation  based on pairing 4Q2014 disclosures by King Digital and Glu Mobile of individual game revenue against App Annie revenue rankings during the same quarter.

Map of Q Final

Below are screen shots of the App Annie charts for Monument Valley on iOS Apple store in the U.S, the dominant market for the game. Similar charts for other countries, some better some worse, could be shown, but no country other than Japan could offset any result from the US.

The game was released on April 3, 2014 and for the first 3 days, the results were great. So, much so that Gamasutra titled a blog on April 10th Designing the Surprise Mobile Game Hit: Monument Valley.

But the game’s stats quickly faded. Monument Valley was the #1 downloaded game on April 3rd, 2014, but fell during the month and sits at #82 on April 28th. As far as revenue ranking–via paid only at time of download  — the game debuted at #30, but, fell in parallel with downloads and now sits at #293.

mv download ios update

(Source: App Annie)

mv revenue rank ios update

(Source: App Annie)

For comparison purposes, I would like to present the charts of two other games, one paid and one ftp with in-app purchases.   The chart of the paid game, which was also a critical success, show the same quick decline in revenue ranking as MV.  The ftp game with an-app purchases has enduring  strength in revenue ranking — 6 months and counting – due to an addictive design even as new downloads show a pattern of decline similar to paid games.

In April 2014, Square Enix released a paid ($4.99) mobile game Hitman GO, named after the Western console “stealth action” franchise Hitman. The game was produced by SE’s Eidos- Montreal studio. Rather than a watered down version of an action console game, the studio created a “diorama-style turn-based strategy” game, perfectly suited for mobile.

hitmango2

Here are the App Annie iOS Apple Store – U.S. charts.

Hitman Go was the #8 most downloaded game on release day April 17, 2014, but has steadily fallen since and sits at #56 on April 28th. As far as revenue – only paid at time of download like MV—the game debuted at #55, but has fallen in parallel to downloads and now sits at #168.

hitman go ldownloads update

(Source: App Annie)

hitman go revenue rank update

(Source: App Annie)

As a contrast to the chart of the two paid game presented above,  we present the chart for a hit game with a ftp + in-app purchases business model. The game is The Hobbit: The Kingdoms of Middle-earth, a strategy/RPG, developed by the U.S. start-up Kabam in partnership with Warner Bros. Interactive Entertainment, whose parent company owns the film rights for the J.R.R. Tolkien works.

The game has never been a download hit, reaching its highest download rank of #372 on December 16th, 2013 and now stands at #796.

But, what an addictive game! The in-app purchases have kept the game’s revenue rank for a full six months between #10 and #15.  Glu Mobile disclosed that it’s first person shooter release Deer Hunter – 2014 with a similar revenue ranking contributed $25M in  4Q2013.  So we, believe that Kabam’s revenue for The Hobbit has been the same — $25M a quarter now for 2 quarters and counting.

kabam download

(Source: App Annie)

kabam revenue rank

(Source: App Annie)

But, there is a long tail relation between revenue and App Annie revenue ranking.  We have estimated that an App Annie ranking of #10-15  is associated with $25M for the quarter but MV’s #298 revenue ranking one month after release probably means that this critically acclaimed game will not exceed $1M in revenue for the quarter.

Furthermore, we estimate ustwo’s development costs –direct labor+benefits+overhead application rate– for  MV to be around $2M based on reports of a development team of 8 highly paid engineers working 10 months.

The game is been a failure financially for ustwo.

 In responds to criticism that the game is too short, the company has stated that they are developing additional levels.

This is not the first time ustwo has released a game that was a critical hit but a financial failure. In October, 2011 they released children’s game Whale Tale which went on to garner 3.68 Million downloads but only broke even financially with $455,000 USD in revenue according to TechCrunch report. The company has been looking to leverage the now established brand “Willows, the flying whale” via an e-book and children’s TV show.

Would designing in-app purchases into Monument Valley kill its mission of creating “an illusionary adventure of impossible architecture and forgiveness.”  Can you produce an “ecstatic” experience and still make money?

If any mobile gaming company can successfully mesh art with commerce, we think it is ustwo.  We are rooting for them.