Welcome back to our Expert Insights blog series with Caglar Eger, the CEO of exmox. In this monthly series, Caglar leverages his 10 years of experience to share his thoughts and knowledge on the gaming and ad tech industries. In today’s post, he shares his insights on the switch towards hybrid casual mobile gaming.
First, what exactly is hybrid casual gaming?
Hybrid casual mobile games are a newer subgenre that blend hyper-casual and mid-core games. They combine the simple, easy-to-pick-up aspects of hyper-casual games with the more complex gameplay found in mid-core games. These games have gained popularity recently and are very present in the top charts nowadays.
Hybrid casual games basically came about because the market became quite saturated with hyper-casual games, and developers were trying to find ways to keep players hooked for longer. They mixed the easy, quick fun of hyper-casual games with things like progression systems, deeper gameplay, and better graphics to make them more engaging.
What are some recent developments in the industry in response to the shift towards hybrid casual mobile gaming?
I think the hybrid casual genre is a perfect example of showing how adaptable the gaming industry is. Voodoo really paved the way when it comes to making the switch from hyper to hybrid casual. There is an article from Deconstructor of Fun that is really insightful. In a nutshell, they faced challenges like market saturation, user retention issues, and monetization difficulties due to privacy changes. To address these, Voodoo pivoted to developing hybrid casual games, moving from a vast network of studios creating simple games to a more efficient model for complex game development. This strategic shift was a rapid evolution, as by 2023, hyper-casual games accounted for only 25% of Voodoo’s revenue. The transition reflects Voodoo’s adaptation to maintain competitiveness and sustainable growth in the mobile gaming market.
Also, Homa Games knows just how important it is to respond to industry developments. They recently hired Dan Adair, Scopely veteran, as VP and general manager of hybrid casual. And just last year, they hired Henry Lowenfels, also a Scopely veteran, as their new President and CBO. This shows that these companies are very serious about building innovative games in this space.
Besides that, Rollic Games is also a great example of a company that set the mark for a blend of hyper and hybrid casual. Starting off very strong in the hyper-casual space, they adapted to the hybrid casual genre perfectly by combining elements from hyper-casual and mid-core games.
Could you explain the top factors contributing to this shift?
I think there’s been a lot of factors that contributed.
Hyper-casual games are heavily dependent on ad-based revenue. However, with Apple’s ATT framework now requiring apps to get user consent for tracking across other apps and websites, many users opted out. This has significantly reduced the effectiveness of targeted advertising, leading to a drop in ad revenue for these games. As a result, the cost of acquiring new users through advertising has increased, making it tougher for hyper-casual games to stay profitable since they need a large user base quickly to generate revenue.
In response, many developers have started to shift their focus towards hybrid casual games, which blend ad revenue with in-app purchases (IAP). Unlike hyper-casual games, hybrid casual games aren’t as affected by the ATT framework because they can still generate revenue through IAP. These games tend to have more complex gameplay and progression systems that encourage players to make purchases within the app. To offset the loss in ad revenue and increased user acquisition costs, developers are creating games that engage players for longer periods. This shift towards higher quality and more engaging gameplay helps improve user retention and lifetime value, making hybrid casual games a more sustainable option in the current market.
What are some hybrid casual games you’ve been enjoying recently?
I have really been loving Screw Jam by Rollic lately. And I also really like Wonder Blast from Good Job Games. They generally create amazing games, Zen Match is another favorite of mine which was sold to MoonActive at the end of 2022.
How can working with rewarded engagement platforms for user acquisition contribute to the success of hybrid casual games?
I might be a bit biased, but I believe reward platforms and hybrid casual games are a perfect match. This genre is a very popular one amongst users but at the same time there is a lot of competition so users might jump to the next game before you know it.
By now, we know that users love playing games while getting rewarded at the same time. Working with a user acquisition provider that has expertise on how to reward the user and when, can be a great tool to keep your users in the game and to engage them long-term.