The gaming industry is constantly evolving, with new technologies, changing market dynamics, and rising production costs shaping the landscape. In our recent Lean Growth webinar, industry leaders shared their thoughts on lean growth strategies, technology adoption, and the importance of efficient team structures to navigate these changes. This article breaks down the key insights from the webinar, touching on the state of the gaming industry, the role of AI, and strategies for optimizing team growth.

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The current state of the gaming industry

Warren (Upptic): The gaming industry has faced challenges in recent years, with stagnation in mobile growth and a cooling investment climate. While mobile gaming, once the fastest-growing sector, has plateaued following Apple’s iOS privacy updates, other areas, like Web3 and PC/console gaming, are gaining momentum. Although Web3 growth is closely tied to the volatile cryptocurrency market, it has shown signs of maturity with more substantial game launches. On the other hand, PC and console gaming are experiencing a boom, driven by the release of successful titles and increased consumer engagement.

Hank (Random Logic Games): Mobile gaming has become somewhat stagnant, with many titles relying on familiar mechanics and revenue models that have started to lose their appeal. The industry hasn’t seen a breakout hit in mobile gaming for a while, which might reflect the challenge of creating fun and engaging games while maintaining a sustainable business model.

Joey (Candywriter): With AI becoming a significant driver of production and marketing in gaming, the industry is shifting toward innovation. While dominant genres like Match 3 games have contributed to stagnation, new technologies such as AI offer fertile ground for creative development and novel concepts.

Lean team strategies in game development

Game production costs are rising, and lean teams need to find ways to stay efficient while delivering high-quality experiences. The panelists agreed that the key to success lies in agility and quick adaptation to trends.

Joey: Candywriter has kept its marketing costs efficient by focusing on user-generated content (UGC) and fast-paced social trends. This approach has allowed them to generate high engagement with low-budget, organic-looking content, keeping marketing efforts profitable and effective.

Warren: Small teams have the advantage of being nimble and can capitalize on trends quickly, unlike larger companies that may face bureaucratic delays. This agility allows lean teams to act on emerging opportunities swiftly and test innovative marketing strategies, which can give them a competitive edge over bigger, slower-moving studios.

Technology as a disruptive force

The games industry has witnessed a surge in new technologies, including AI, Web3, VR, and subscription-based gaming models. But which of these technologies will have the most disruptive impact?

Hank: AI is set to play a critical role in game development, with its potential to streamline processes across departments. Although AI hasn’t yet fully matured into a key production agent, it is already a valuable tool that helps with various aspects of game development.

Joey: AI’s impact on both engineering and marketing is transforming game production, allowing teams to experiment with clever mechanics and novel game concepts. Additionally, AI can improve the efficiency of creative content production, helping teams develop games faster and at a lower cost.

Warren: A crucial factor for game developers today is cross-platform compatibility. Developers must focus on maximizing their addressable market by ensuring their games can run on as many devices as possible. This approach is increasingly relevant as the lines between mobile, PC, and console gaming blur, and as new technologies like AR and VR gain traction.

The core components of a lean growth team

A lean growth team needs to be efficient, versatile, and capable of quick decision-making. The panelists discussed the key components that make up such teams and how to balance specialization with generalization.

Hank: A successful lean team must be made up of individuals who are knowledgeable across key aspects of game development and marketing, from UA (user acquisition) to data analysis and creative development. Teams should avoid silos and ensure that all members have at least a basic understanding of each other’s work.

Joey: On the creative side, the key positions include motion graphics experts, social media producers, and a creative lead to coordinate production. This setup allows for fast, effective decision-making, and helps the team stay ahead of trends in content creation.

Warren: Specialization is essential, but equally important is ensuring that each team member has a broad understanding of different disciplines. This T-shaped skill set allows individuals to excel in their area of expertise while contributing meaningfully to the team’s overall strategy.

Leveraging AI for growth

AI has been a hot topic in the gaming industry, and the panelists shared how they’re using AI to enhance their workflows and improve growth outcomes.

Joey: AI has played a pivotal role in Candywriter’s creative production, automating processes like dynamic captions, character animations, and music creation. The team has seen a 40-50% increase in output thanks to AI tools like Adobe Firefly, Video Leap, and Suno AI.

Hank: Generative AI has significantly improved Random Logic Games’ ability to create content for word games. AI tools like ChatGPT help generate ideas for game categories, and AI-powered voice tools are used for creative reads, replacing traditional voiceover artists.

Warren: The most significant change in workflows has been the rise of “model whispering” — understanding how to optimize AI algorithms and marketing campaigns. Creative assets have become the fuel for AI-powered growth, making it crucial to invest in high-quality creative production that drives performance.

The future of lean games growth

The gaming industry is in a state of transformation, with new technologies like AI, Web3, and cross-platform gaming reshaping how games are developed, marketed, and consumed. Lean teams are well-positioned to capitalize on these changes, thanks to their agility, adaptability, and willingness to experiment. By leveraging AI tools, focusing on creative innovation, and staying ahead of industry trends, small but powerful teams can continue to thrive in this competitive landscape.

If you’re a game developer or marketer looking to stay ahead in the industry, now is the time to embrace AI, refine your team structure, and explore new opportunities for growth. Reach out to us to see how we can help!

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