Traditionally tied with Facebook for most of its existence, maker of popular games Kabam is in the process of moving to mobile with its latest game entitled Arcane Empires, and they are very excited about the prospects of the new platform.
This is a significant change considering it was only last year that their efforts were entirely invested in Facebook. In an interview conducted last week by Venturebeat, Kevin Chou, CEO of Kabam, said that their revenues in 2011 were upwards of $100 million, and this year they expect to increase that by 50% to $150 million. Given the dedication of the user-base, most of Kabam’s strategy is focused on hardcore gamers who spend money to play social games. And it’s been lucrative.
“We’ve grown tremendously,” says Kevin. He isn’t exaggerating. They have been on the top-grossing list consecutively for the past several months and he claims they are No. 1 in 26 countries. And that is only for their first iOS game, Kingdoms of Camelot: Battle for the North. Not bad for being new to mobile.
As a result, Kabam’s interest in Facebook is diminishing. Indeed, iOS has drastically affected their business focus. “We are one of the few companies that is seeing significantly better monetization on mobile and tablets than we were seeing on the web,” explains Kevin. Kabam now receives only 30% of its revenue from Facebook. He has found that iOS is much more profitable than Facebook because users are already accustomed to payments.
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