Recently the Chinese investors bought a controlling interest in the popular gaming app Clash of Clans, and this transaction led by Tencent Holdings Ltd, valued the app developing company above $10 billion. Thus, it became one of the most expensive tech startups, however this has failed to please Supercell CEO Mr. Ilkka Paananen.
Mr. Paananen is upset with the stumbling sales of Clash of Clans in the mobile-gaming industry, and he has been constantly receiving alarming reports. The signature games developed by the company no longer ranks among the high-revenue generating apps in the App Store, and they have been replaced by Pokémon Go, the new raging app developed by Niantic Inc.
A marketing failure on top of that:
Apart from the dropping sales, another major factor that has been disturbing Supercell’s CEO is that none of the steps takes to improve the sales of the ‘Clash of Clans’ seems to work in their favor. Mr. Paananen further said launching the television ad campaign at the same time as the Summer Olympics in Brazil was a wrong decision by the company.
So, what’s the fix?
Mr. Paananen said in an interview that Supercell is now focused on fixing the problems, and it aims at doing so by paying attention to user complaints. The handful of games on offer will also be refreshed and updated more often. The improvements started paying off and very soon Clash Royale ranked once again as one of the top-grossing apps in the App Store in the US.
The dropping sales have been very disappointing and the huge amount Tencent and its partners had paid for purchasing an interest in Supercell had put an undue pressure on the company. In summer last year, Mr. Paananen had been able to review the company’s situation and identify the issues. As a result, corrective measures were immediately taken to improve the fate of the apps.