Supercell the maker of “Clash of Clans” will be using survival of the fittest regarding its mobile games. The company will concentrate on a few games and kill off those that do not become a top-10 global hit, according to its chief executive.
Last year, the Finnish firm was the world’s second-largest publisher in terms of revenue generated on Apple’s iOS and Google Play stores, second to China’s Tencent also its proprietor. Supercell was founded in 2010 and is valued around $10 billion, with a profits of about $1 billion on last year’s sales of $2.5 billion.
Supercell’s four games Clash of Clans, Clash Royale, Boom Beach and Hay Day in total have around 100 million active players daily that includes Tencent Chief Executive Martin Lau a fan of Clash Royale. Clash of Clans, remains on the list of top-earning applications ever since it launched in 2012.
Ilkka Paananen, CEO of Supercell stated that the company developed ten games before its most recent launch, but only one was released.
“I fully expect that to be the case going forward… we won’t be launching that many games. We don’t want to launch games that we believe don’t have a chance to hit the top ten globally,” Paananen said.
Tencent’s Lau stated that he regretted not investing in the company earlier, adding that Tencent had offered to acquire a 20 percent stake at that time, but Supercell’s owners only sought to sell a majority stake.
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“I did a big mistake of not meeting him (Paananen) at that time, it was a $3 billion mistake.”
Supercell first entered a deal with Japan’s Softbank back in 2013. Last year, Tencent then purchased Softbank’s stake in the company and has grew its shareholding to 83.6 percent. Tencent is China’s largest social network and gaming firm and beat Facebook with a market value surpassing $520 billion last month.
“Getting access to their resources in China is a big advantage for us,” Paananen said.