Supercell, the game developer of hit mobile games like "Clash of Clans" and "Clash Royale", has confirmed that it had earned $2.3 billion in 2016. This increased from the $897 million it made in 2015.
That really is a very big profit for a company that only has 213 employees. What makes it even more surprising is that it had achieved this feat even if it only has four games in the market.
The Success That Supercell Is In
According to Venture Beat, SuperData Research suggests that the company's profits might have exceeded that official proclamation, stating that it might have hit the $40 billion mark in 2016. The games developed by Supercell are all free-to-play. However, it also has its own in-game items that its players can spend real money on.
Because of the stiff competition between the players and the clans that they are in, in-game purchases skyrocket. According to FT, Tencent Holdings, a Chinese firm, has acquired majority shares of Supercell in 2016. This is valued at $10 billion.
Supercell says that most of its success can be attributed to the minimal spending they had on advertising and marketing. The popularity of "Clash Royale" last year was also very helpful in increasing the company's profits.
How Clash Of Clans And Clash Royale Helped Supercell
"Clash of Clans" and "Clash Royale" all managed to make it to the top five games in terms of revenues. This is from a report done my App Annie, a market research company.
Illkka Paananen, the CEO of Supercell, founded the company way back in 2010 with a capital of €5 million, which was obtained through Tekes, the funding agency of the Finish government. As of now, Supercell is paying more than a hundred million euros for taxes every year.
With all of these being said, it seems like there is no slowing down for Supercell. Hopefully, more entertaining and fun games will be developed in the next years to come.
