This thesis investigates the lifecycle of augmented reality (AR) games, focusing on their initial surge in popularity followed by a decline in user engagement. By analyzing successful AR games such as Pokémon GO, Harry Potter: Wizards Unite, and Ghostbusters World, this study argues that engaging a SaaS game studio for AR game development, rather than launching standalone titles, offers sustainable benefits. These benefits include maintaining consistent daily active users (DAU), monthly active users (MAU), brand recognition, and fan engagement. The SaaS model leverages shared technological infrastructure to support multiple games, mitigating the risks associated with the lifecycle of individual AR titles.

Introduction

Augmented reality (AR) games have captivated millions by blending digital experiences with real-world environments. Titles like Pokémon GO have showcased the potential for massive initial user engagement. However, sustaining this engagement over time presents significant challenges. This thesis explores the viability of a Software as a Service (SaaS) model for AR game development as a strategy to maintain consistent user engagement and extend the lifespan of AR games.

Literature Review

The literature on AR games reveals a common pattern of high initial engagement followed by a gradual decline. Pokémon GO, launched in 2016, reached over 232 million monthly active users (MAUs) at its peak but experienced a sharp drop to 65 million by the end of 2017 (Business of Apps; Wikipedia). Harry Potter: Wizards Unite and Ghostbusters World followed similar trajectories, with significant initial downloads and user engagement that waned over time due to gameplay fatigue and external events (Niantic Labs; TechRadar; Business of Apps).

Methodology

This study employs a mixed-methods approach, combining quantitative analysis of DAU and MAU statistics from industry reports and qualitative insights from user reviews and expert interviews. Data sources include reports from Business of Apps, Sensor Tower, and Niantic’s public statements.

Analysis

Initial Popularity and Decline

• Pokémon GO: The game’s innovative use of AR and the popular Pokémon IP drove unprecedented engagement at launch. However, user numbers declined as the novelty wore off and gameplay stagnated (Business of Apps).
• Harry Potter: Wizards Unite: Despite leveraging a beloved franchise, the game struggled to maintain its user base post-launch, with DAU and MAU dropping significantly within the first year (Niantic Labs; TechRadar).
• Ghostbusters World: Leveraging the nostalgia of the Ghostbusters franchise, the game saw initial excitement but faced difficulties in sustaining long-term user engagement. DAU and MAU declined after the first few months as the novelty faded and players moved on to other games (Business of Apps).

Event-Driven Engagement A significant aspect of AR games is their ability to boost player engagement through specific in-game events. For instance, Pokémon GO frequently sees surges in player activity during community days, special challenges, and holiday events. These events temporarily revive interest and draw back players who might have lapsed. However, between these events, the player base often experiences significant lulls.

The SaaS Model for AR Game Development A SaaS game studio can provide a robust, adaptable platform for developing multiple AR games. Key benefits include:

• Shared Technological Infrastructure: A common platform reduces development costs and time, allowing for rapid deployment of new games.
• Consistent User Engagement: Regular updates and cross-game events can sustain user interest across different titles. The SaaS model ensures that games can frequently host events without the typical lulls, maintaining a higher level of consistent engagement.
• Brand Recognition and Loyalty: A unified platform reinforces brand identity and fosters a loyal community of players.

Case Studies of SaaS Models in Gaming

• Niantic’s Real World Platform: Niantic has successfully leveraged its platform for multiple titles, including Pokémon GO, Harry Potter: Wizards Unite, and the upcoming Peridot. This approach has allowed them to share technological advancements across games, maintain a dedicated user base, and quickly adapt to market changes (Wikipedia).
• Unity and Unreal Engine: These game development platforms serve as SaaS models, enabling numerous developers to create diverse games using shared technology, demonstrating the scalability and sustainability of this approach in the gaming industry.

Discussion

Mitigation of Lifecycle Risks One of the primary benefits of contracting a SaaS game studio is the mitigation of lifecycle risks associated with individual game titles. By sharing a technological platform across multiple games, studios can:

• Reduce Development Costs: Developing multiple games on a shared platform decreases the overall cost per game. Economies of scale are achieved by reusing code, assets, and infrastructure, making it more financially viable to support games over a longer period.
• Accelerate Time-to-Market: A shared platform allows for faster iteration and deployment of new titles. This agility enables studios to quickly respond to market trends and user feedback, keeping the game portfolio fresh and engaging.
• Continuous Innovation: Innovations and improvements in the platform benefit all games built on it. For example, advancements in AR technology, server infrastructure, or gameplay mechanics can be rolled out across the entire suite of games, ensuring that each title remains cutting-edge and competitive.
• Sustain Community Engagement: Cross-game events and shared user accounts encourage players to engage with multiple titles within the same ecosystem. This strategy keeps the community active and invested, reducing churn rates and increasing overall engagement metrics.
• Diversify Risk: By not relying on the success of a single title, studios can spread the risk across multiple games. If one game experiences a decline, the overall impact on the studio is mitigated by the continued success of other titles in the portfolio.

Continuous Event-Driven Engagement Engaging a SaaS game studio can also optimize event-driven engagement. With a SaaS model, games can be structured around frequent events, leveraging the shared platform to continuously offer new experiences. This approach can mitigate the typical lulls between events seen in standalone titles. By having multiple games under one SaaS umbrella, cross-promotion and synchronized events can be coordinated, ensuring that there is always a reason for players to return.

• Maintain High Engagement: Regular events across multiple games can keep user engagement high. Players are less likely to experience fatigue as they move between different games, each offering unique events and challenges.
• Unified Ecosystem: Players benefit from a cohesive ecosystem where rewards and progress can be shared across titles. This unified experience promotes sustained interest and loyalty.

Conclusion

The lifecycle of AR games highlights the difficulty in maintaining long-term user engagement. This thesis demonstrates that contracting a SaaS game studio, which offers a shared technological infrastructure for multiple AR games, can provide sustained DAU and MAU, stronger brand recognition, and deeper fan engagement. Additionally, a SaaS model can capitalize on event-driven engagement, maintaining player interest by reducing the lulls typically seen between events in standalone games. Future research should explore the specific economic and operational impacts of adopting this model, as well as its applicability to other genres of mobile gaming.

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