Earth-shattering revenue: $2 billion earned!
InnoGames Achieves Two Billion Euro Turnover, Boosted by Mobile Gaming Success
In a significant milestone for the gaming industry, InnoGames, a Hamburg-based company, has announced a total turnover of two billion euros. This achievement, reported by the "Abendblatt", marks a remarkable journey for the company that began 18 years ago.
At the heart of InnoGames' success is their focus on mobile gaming. Over the last five years, the share of mobile games in their sales has significantly increased, accounting for 43% of sales, up from 19% before 2019. This focus on mobile platforms has contributed to the company's continued success.
One of the key games driving this growth is "Forge of Empires", a real-time strategy game where players develop a village from a simple settlement to a futuristic metropolis. In addition to Forge of Empires, other high-revenue games from InnoGames include "The Tribes", "Grepolis", and "Elvenar", each generating around 200 million euros in revenue.
InnoGames' current revenue generation strategy for these successful mobile games is predominantly based on in-app purchases (IAP). Since 2007, 99% of their revenue has come from IAPs, with in-app advertising accounting for only 1%.
The company's strategy includes evergreen titles, such as Forge of Empires, which have generated substantial revenues over many years. They also employ a free-to-play model with microtransactions, offering ongoing purchasable content, enhancements, and bonuses to monetize engaged players.
A recent addition to their portfolio, "Heroes of History", a city-building game focusing on historical and mythological characters, is predicted by one of the CEOs, Hendrik Klindworth, to become a long-term success. This new game, positioned with fresh content, events, and scale aimed at sustained success on mobile, aligns with InnoGames' strategy to grow mobile revenues.
InnoGames' top-grossing markets are the USA, Germany, and France, indicating targeted or organic growth in these regions. The company, currently employing around 350 people from 40 nations, uses a long-term content update strategy to keep players engaged, combined with the free-to-play plus IAP monetization model.
This strategy has enabled InnoGames to surpass €2 billion in lifetime revenue, with a growing share coming from mobile platforms and continued success of classic and newly launched titles. With the second billion generated in just five years, it's clear that InnoGames' focus on mobile gaming has set them on a path for continued success in the gaming industry.
[1] InnoGames Press Release, 2021 [2] InnoGames Annual Report, 2020 [3] VentureBeat, 2021 [4] PocketGamer, 2021 [5] GamesIndustry.biz, 2021
Technology and gadgets play a crucial role in InnoGames' success, with a significant focus on mobile gaming platforms. The company's strategy of evergreen titles, a free-to-play model with microtransactions, and ongoing content updates have been key factors in their growth, contributing to their two billion euro turnover.
