Is it better for Supercell to expand our existing game portfolio or concentrate resources on developing a new flagship title?

Introduction

The trade-off question at hand is whether Supercell should expand our existing game portfolio or concentrate resources on developing a new flagship title. This scenario involves balancing the potential of our current successful games against the opportunity to create a groundbreaking new title. I'll approach this analysis by examining our current portfolio, market trends, resource allocation, and potential outcomes for both strategies.

Step 1

Clarifying Questions (3 minutes)

• Context: Based on Supercell's history of hit games, I'm thinking our existing portfolio is still performing well. Could you share how our current games are trending in terms of user engagement and revenue?

Why it matters: Helps assess the potential of expanding existing games vs. new development Expected answer: Mixed performance across titles, with some showing decline Impact on approach: Would influence resource allocation between existing and new games

• Business Context: Considering the mobile gaming market's competitiveness, I'm assuming we're facing pressure to innovate. How urgent is the need for a new flagship title from a business perspective?

Why it matters: Determines the balance between short-term gains and long-term strategy Expected answer: Moderate urgency, aiming for release within 1-2 years Impact on approach: Would affect the timeline and resource intensity for new game development

• User Impact: Given our diverse player base, I'm thinking different segments might have varying preferences. Do we have data on which user segments are most valuable or growing fastest?

Why it matters: Helps target expansion or new game efforts to key user groups Expected answer: Younger demographics showing highest growth and monetization potential Impact on approach: Would influence game design and marketing strategies for both options

• Technical: Considering the rapid advancements in mobile technology, I'm curious about our current technical capabilities. Are there any new technologies or platforms we're particularly well-positioned to leverage?

Why it matters: Could reveal unique opportunities for either expanding existing games or creating a new title Expected answer: Strong capabilities in AR/VR, potential for cross-platform play Impact on approach: Would guide the technical focus of our development efforts

• Resources: Looking at our team structure, I'm wondering about our current capacity for new game development. How stretched is our existing team across current game maintenance and potential new projects?

Why it matters: Determines feasibility of pursuing both strategies simultaneously Expected answer: Team at 80% capacity with current projects Impact on approach: Would influence decision on hiring, outsourcing, or reallocating resources