Amid recent struggles derived from an increasingly saturated market, Gameloft, one of the largest producers and developers in the mobile-gaming market has had several subsidiary studios fail to reach even after the first half of 2015 and in an effort to cut their losses have let loose seven studios.
The french company lost over €4 million through Q1 and Q2 and Michel Guillemot, CEO of Gameloft, is moving forwards with cost-reduction program that encompasses the closure of the seven studios.
“This first-half loss is due to the seasonality of our business as well as to the disappointing level of revenues achieved by the three games developed by Gameloft specifically for the Japanese and Chinese markets.In order to return to profitability in the second half of 2015, and to past profitability levels in the medium term, Gameloft has initiated an ambitious cost reduction program since the start of the year and in the process closed seven development studios that had become unprofitable,” – Michel Guillemot
Despite this recent dip in company health they still stand as the number one game producer on iOS and Android with over 172 million monthly users spread out across the globe. Europe/Africa/Middle East currently accounts for the largest chunk of those players at 30% while Asian and North American markets account for 28% and 27% respectively.
Gameloft is hoping that they’re upcoming releases of Disney Magic Kingdom, Order & Chaos 2: Redemption and TRIVIAL PURSUIT & Friends will make up any past struggles.
Even with this loss of individual studios, Gameloft will have released 17 mobile games by the year’s end.
