Is it more beneficial for Supercell to expand into new game genres to diversify our portfolio or concentrate resources on improving our established hit titles?

Introduction

The trade-off we're examining today is whether Supercell should expand into new game genres to diversify our portfolio or concentrate resources on improving our established hit titles. This decision is crucial for our long-term growth strategy and resource allocation. I'll analyze this trade-off by considering market trends, user behavior, technical feasibility, and business impact. Let's dive into the key aspects of this scenario and explore the potential outcomes.

Step 1

Clarifying Questions (3 minutes)

• Looking at our current game portfolio, I'm thinking we might have untapped potential in certain genres. Could you give me an overview of our existing game genres and their performance?

Why it matters: Helps identify gaps and opportunities in our portfolio Expected answer: Strong performance in strategy and casual games, potential gaps in RPG or simulation Impact on approach: Would influence which new genres to consider or which existing games to focus on

• Considering our user base, I'm curious about cross-game engagement. What percentage of our users play multiple Supercell games?

Why it matters: Indicates potential for cross-promotion and user retention Expected answer: 30-40% play multiple games Impact on approach: High overlap might favor improving existing games, low overlap could support diversification

• From a technical standpoint, I'm wondering about our current game engine capabilities. How flexible is our technology for developing new genres versus optimizing existing ones?

Why it matters: Affects feasibility and resource requirements for new game development Expected answer: Flexible engine with some limitations for certain genres Impact on approach: Would influence the cost-benefit analysis of new genre development

• Regarding our team structure, I'm thinking about our current capacity. How are our development teams currently allocated between maintaining existing games and new game development?

Why it matters: Helps understand resource constraints and potential for reallocation Expected answer: 70% on existing games, 30% on new development Impact on approach: Would impact the feasibility of pursuing both strategies simultaneously

• Considering market trends, I'm curious about the growth rates in different mobile game genres. Do we have data on which genres are showing the highest growth potential in the next 2-3 years?

Why it matters: Informs the potential return on investment for new genre expansion Expected answer: High growth in mobile RPGs and social simulation games Impact on approach: Would guide genre selection if we decide to diversify