Thunderful, an independent game developer, have announced that they are going to be restructuring the company, resulting in a second wave of layoffs. The company aims to improve cash flow by $7.2 billion, so they can continue to release new titles. Their first restructuring did see notable improvements in expenses, but they still missed their targets and struggled with negative cash flow.
The Shift to Online Multiplayer
The gaming sector has put an increasing focus on online multiplayer and live service games as the years have gone by. Companies like Epic Games and Activision Blizzard have set the industry standard, but this shift has made it difficult for smaller, more traditional game developers to compete.
When you look at the stats, it’s clear to see that consumer demand for live, online experiences is growing too. iGaming is a prime example here, with casino gaming in particular expected to grow at a CAGR of 12% by 2030. Even though this genre is growing exponentially, live online casino providers are still pivoting to adjust to changing consumer demands. This includes releasing traditional games with a unique spin, such as Live Mega Fire Blackjack Blaze, or Live Lucky 6 Roulette. This game enhances the experience of roulette by adding in six lucky numbers every round. Other live variants involve streaming games from prestigious casinos around the world, as people demand more unique and immersive experiences.
The Next Step for Thunderful
To counter these new trends in gaming, Thunderful have tried to diversify their portfolio. Over the years, they have put a bigger focus on multiplayer or online games, but with that being said, they are still associated with niche games that do not rely on a live service model. The company’s focus on single-player experiences might have earned them a loyal following, but now’s the time for them to explore new opportunities. One way the company is trying to navigate this trend is by shifting its focus to external publishing. Using external talent and resources will give them the chance to retain the internal development that gives them the edge while cutting costs.
They also hope to increase their general flexibility moving forward so that they can continue to release games that people know and love. By using outside talent, it will become easier for the company to develop online titles, while ensuring that they are still putting a focus on creating unique gaming experiences for fans. Some of the hit games that have put them on the map include Paper Cut Mansion, a horror game that’s set in a universe made entirely out of cardboard. Games like this more than facilitate the option of online multiplayer, as people can work together to beat the game, but the company has yet to give thought to this.
By trying to adapt to the market moving forward, it may be that the company live to fight another day and that they can continue releasing great games that appeal to the current market. For now, the future is uncertain, as drastic changes are still to be made.