Smash hit mobile game Clash of Clans maker Supercell has today announced that its earnings saw a rise in 2016, despite the fact that sales growth stalled due to stiff competition from Nintendo’s Pokémon GO, Reuters is reporting. The Finnish game developer also highlighted that profits benefited from lower spending on advertising and the successful launch of its latest game Clash Royale.
“Despite tighter competition, this was the best year so far in financial terms. Clash Royale was a huge hit,” Chief Executive Ilkka Paananen told reporters.
Clash of Clans, a war strategy game in which players build fortresses, form clans with other players and battle it out in a Medieval-style fantasy world, has remained on the list of top-earning applications since its launch in 2012.
“In the summer, when Pokemon GO was a huge hit, a taxi driver asked me what would be our counter-attack. I said there’s no point in doing something against a competitor, we must only focus in doing what we do best, improve our games further,” Paananen said.
Supercell says that it has focused on developing a handful of games, instead of launching a variety of games for different audiences. Using a “freemium” price strategy, its games are free to download, but generate revenue from in-game purchases. The strategy has helped the company avoid problems faced by the likes of Rovio, which has launched several titles but failed to create a follow up hit to its Angry Birds.
According to app research firm App Annie, Clash of Clans was ranked No. 2 after Mixi Inc’s Monster Strike, while Clash Royale, which also features Clash of Clans characters, was No. 5. Although Pokemon GO has the biggest number of active users, in revenue terms it lagged Clash of Clans.