Scopely COO on Creating "Social Engaging Experiences"

Key Concepts

• Community-First Approach: Niantic's core philosophy for game development, focusing on social engagement.
• Highly Social, Engaging Experiences: The primary differentiator for Niantic's games.
• Lifetime Revenue: Total revenue generated by a product or company over its entire existence.
• Daily Active Users (DAU): The number of unique users interacting with a product or service on a given day.
• IP (Intellectual Property): A creation of the mind, such as an invention, literary and artistic works, designs, symbols, names, and images used in commerce.
• Cross-Platform Development: Creating software that can run on multiple operating systems or devices.
• Screen Time Competition: The battle for user attention across various digital platforms (gaming, social media, streaming).
• Go Fest: A real-life community event for Pokémon Go players.

Niantic's Approach to Competition and Innovation

Niantic views competition as a positive force that fuels innovation and drives the company to exceed expectations. Their core strategy is a "community-first approach," focusing on building "highly social, engaging experiences." This emphasis on social engagement is considered their ultimate differentiator and a key driver of revenue.

Business Model and Achievements

Niantic has achieved significant financial success, reporting over $10 billion in lifetime revenue last year. Their games boast a massive user base, with 500 million+ daily active users (DAU) interacting with their titles in the last 12 months. The company is excited about the continued growth of its portfolio, including the recent addition of Pokémon Go, which continues to attract new players daily.

Industry Trends: Mobile Game Casting and Niantic's Perspective

The discussion touched upon recent industry news, specifically Netflix's demonstration of technology that allows mobile games to be cast from a phone to a TV screen. The speaker, identifying as a hardcore gamer, was not "blown away" by this concept. Niantic's perspective on such innovations is rooted in their commitment to creating highly social and engaging experiences. They aim to be present on various mediums where players want to be and actively foster real-life community gatherings, such as the Go Fest for the Pokémon Go community. Their focus remains on understanding how people play and engage with their content to best serve their community.

Strategic Partnerships and Industry Shifts

The conversation acknowledged the "seismic shifts" in the gaming industry over the past two years. Niantic has a financial relationship with Saudi Arabia through various investments. When asked about potential cooperation with Electronic Arts (EA), particularly given Niantic's strength in mobile gaming and EA's comparatively weaker position, the speaker expressed immense respect for EA's achievements and brands. While no specific post-deal discussions are currently underway, Niantic remains "open to discussions" if such opportunities arise.

Evolution of Gaming: Mobile vs. Console and Cross-Platform Development

The speaker, a former Activision executive who worked on Call of Duty and identifies as a hardcore gamer, addressed the evolving balance between mobile and console gaming. They believe that players desire to access content in diverse ways, and it's not a "huge battle" between platforms. Niantic's strategy is to serve its community wherever they choose to play. The company also revealed that it has "several things in development that are cross-platform and across platforms you may not expect from Niantic," indicating a broader strategic vision beyond traditional mobile gaming.

Global Reach and Community Building

Niantic's international perspective is highlighted by the speaker's own background (studying in Asia, living in London). The company recognizes the global appeal of games, citing Pokémon Go – an inherently Japanese IP – as a total global phenomenon. Games, for Niantic, are powerful tools that "bring these folks together across the globe," transcending geographies and cultures, thereby promoting social connection.

Competition for Eyeballs and Screen Time

The fast-moving nature of the gaming space means that competition for user attention extends beyond traditional gaming companies. Niantic considers rivals to include platforms like TikTok and other forms of "screen time." Their strategy involves being conscious of "wherever eyeballs and intention is," recognizing that players engage with IP through various mediums, not just directly through games. Mobile is seen as a highly tactile and accessible way to connect with the community, but staying on top of diverse engagement channels is paramount.

Service Stability and Peak Usage

Addressing concerns about service stability during peak usage, similar to Roblox's reported issues on Friday nights, Niantic emphasized the deep love players have for their apps, leading to constant engagement. As an example, Star Trek Fleet Command sees 75% of its players interacting with the game every single day, demonstrating the high volume and consistent activity across Niantic's products.

Synthesis/Conclusion

Niantic's strategy is deeply rooted in fostering highly social and engaging experiences through a community-first approach, which they believe is their key differentiator and revenue driver. Despite significant financial success and a massive user base, the company actively embraces competition as a catalyst for innovation. They are adaptable to evolving industry trends, open to strategic partnerships, and committed to meeting players where they are, whether through diverse platforms (including upcoming cross-platform titles) or by competing for "eyeballs" against broader screen-time activities. Their global perspective and focus on transcending cultural barriers through social connection underscore their vision for the future of interactive entertainment.