We hope that you are all familiar with Supercell, the company that is making millions in daily revenue and has been the top grossing games publisher in the world ever since they reached the position last year. What some may not be aware of is that GungHo Entertainment from Japan has been the number two for many months and is generating revenues of over $2.5 million a day and is valued at $4.5 billion.
The two companies have just announced that they are going to join forces and are planning to collaborate by introducing exclusive in-game features for their leading titles: Clash Of Clans and Hay Day by Supercell and Puzzle & Dragons by GungHo Entertainment. For instance you might stumble upon a dungeon in Puzzle & Dragons that would be themed with Clash of Clans decorations and monsters. Clash of Clans and Hay Day will both feature cross-promotion elements as well.
Ilkka Paananen, the CEO of Supercell commented “The more time we spend with GungHo, the more we realize how remarkably similar our two companies are. We are deeply committed to helping each other expand into new markets and equally committed to having an incredible amount of fun working together.”
So you might say, we will have some in-game monsters and perhaps Puzzle & Dragons mentions in your Clash Of Clans Battle Log, so what? Well, we view this as a huge marketing move that will make both companies grow even bigger. Basically their audiences are not exactly the same. Puzzle & Dragons are not as popular in the US and Clash Of Clans might enjoy the boost in Asia. Through cross-promotion they are introducing the two multi-million gaming audiences to each others titles, which in turn can lead to a lot more downloads for both.
Daisuke Yamamoto, producer of GungHo Entertainment told Wall Street Journal that “The idea is to help one another in markets where each is weak”. This is further supported by the fact that Supercell is opening an office in Japan. With that, access to 14 million Puzzle & Dragons players in Japan would be a great entry point into the market.
Basically it is virtually free barter based advertisment and we are curious to see how this will affect both companies. The cross-promotion is said to start on the 24th of June and is expected to last for two weeks. For those of you that are interested to meet Supercell and GungHo entertainment personally, they will both be joining the Free Your Play gaming conference in Finland on the 19th of June.