Canadian mobile developer East Side Games has experienced a decline in revenue, with a decrease of 32% to $24.3 million in their most recent financial results.

In the studio’s Q1 2023 results, it is shown that the daily active users (DAU) remained stable since Q4 2022, at 277,000. However, the average revenue per daily active user (ARPDAU) has decreased from $1.04 to $0.95 quarter-on-quarter. Additionally, the company has announced plans to buy back up to 4,076,819 shares, indicating a potential period of strategic direction in the company’s future.

East Side Games was quick to highlight two major releases this year: Milk Farm: Tycoon and Doctor Who: Lost in Time. These releases are expected to offer growth potential in the near future.

Jason Bailey, CEO of ESGG, commented, “Munchie Match continues to demonstrate impressive retention numbers compared to other LDRLY titles, with Day One retention rates exceeding 50% and Day Seven retention over 25%. We are regularly adding event-driven LiveOps to the game and anticipate that the game will be ready for a large marketing push by mid Q3. This title serves as a strong foundation for success in the Match 3 genre, and we already have partnerships with renowned IPs which will result in titles built upon this GameKit framework.”

A Challenging Time for Mobile Gaming?

While major companies like EA and Take-Two have managed to weather recent industry challenges, other mobile game makers such as Playtika and NCSoft have experienced declines in their financial performance. These challenges indicate that this year has been tough for mobile game developers. However, it is worth noting that not all is lost as some companies like Applovin have seen growth, primarily driven by their non-mobile business. The decline in revenue can be attributed to factors such as the post-Covid landscape, macroeconomic circumstances, and changing player preferences regarding game genres.