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Why Snapchat removed games?

Why Snapchat removed games?

Snapchat’s decision to remove games from its app in October 2022 came as a surprise to many users. Games like Bitmoji Party and Snake Squad had become popular staples on the platform. So why did Snapchat suddenly pull the plug on its gaming features?

The Declining Popularity of Snapchat Games

While Snapchat games may have amassed a dedicated following amongst some users, the overall engagement and interest in these games had been steadily declining. Snapchat reported that time spent playing games decreased by 19% year-over-year in Q2 2022. Furthermore, less than 1% of Snapchat’s daily active users were engaging with the games by Q2 2022. This suggests the games were not retaining high levels of interest amongst Snapchat’s broader user base.

Metric Q2 2021 Q2 2022
Daily Active Snapchat Users 293 million 347 million
Time Spent Playing Games 100% 81%

As the above table shows, while Snapchat’s total daily active users grew significantly year-over-year, time spent playing games declined by 19% in the same period. This data indicates waning popularity of Snapchat’s gaming feature amongst the broader user base.

Snapchat’s Shifting Priorities

With user engagement declining, Snapchat likely felt it was no longer worth allocating resources to support and update its games. The company has shifted its focus towards more popular and profitable parts of its business, like advertising and augmented reality.

In 2022, Snapchat began facing some financial struggles. Its stock price plunged over 80% as digital advertising spending slowed industry-wide. The company initiated cost-cutting measures, laying off around 20% of its employees. Removing resource-intensive Snap Games likely helped reduce costs as the company aimed to regain profitability.

Investing in Augmented Reality

As Snapchat scales back its gaming ambitions, the company is actively investing in augmented reality (AR) technology. Snap believes AR experiences through filters and lenses represent the future of social media interaction. Use of Snapchat’s AR offerings increased 19% year-over-year in Q2 2022.

Snap is collaborating with third parties to expand the utility of AR for users. For example, it partnered with Ticketmaster to create Live Nation AR experiences. It also acquired tech startups specializing in AR capabilities. Clearly, Snapchat sees more potential for monetization and user growth in AR compared to games.

Expanded Advertising Options

Snapchat has also been expanding and optimizing the ways advertisers can reach users on its platform. New ad formats like Commercials, Brand Profiles, and Cameos for Businesses open up more monetization avenues. The company has also enhanced its analytics capabilities to improve advertisers’ abilities to measure campaign performance.

These efforts appear to be paying off, as Snapchat reported a 9% increase in revenue per user in Q2 2022. As its advertising products become more robust and effective, the platform has less need to rely on supplementary revenue from gaming.

Developing Higher Quality Games Takes Time and Resources

Creating fun, engaging mobile games requires substantial time and resources. Snap likely recognized it would need to invest significant manpower and effort to develop new titles and features that could attract users back to Snap Games.

With 80 games available on the platform, Snapchat had already developed an extensive library spanning multiple genres. Producing innovative games that stand out in a crowded market requires strategic vision and top-tier development talent.

As a predominantly social media-focused company, Snapchat may have lacked the specialized gaming expertise and strategic focus needed to keep pace with user expectations. For a platform used for quick communication, investing further in extensive multiplayer gameplay may have seemed misaligned.

Competition from Major Gaming Companies

Snapchat also faced stiff competition from gaming companies with far more resources and experience in the market. Platforms like Apple Arcade and Google Play offer users access to hundreds of premium, free-to-play titles.

These dedicated gaming services can invest more substantially in aspects like 3D graphics, multiplayer networking, and intellectual property deals. For Snapchat to meaningfully compete, they would need to drastically ramp up gaming development efforts.

New Platform Standards and Device Capabilities

Finally, keeping games updated across new devices and platforms can require significant engineering overhead. As Apple and Google release advanced hardware with new software capabilities, games may need extensive modifications to perform well.

Dedicated gaming companies have entire teams focused on technical optimization and platform expansion. For Snapchat, frequently updating games for new APIs and devices likely proved excessively burdensome relative to the modest engagement games were driving.

The Removal of Snap Games

In July 2022, Snapchat announced it would discontinue future development of Snap Games. Existing games would remain playable for users until the eventual planned phase-out.

By Q4 2022, Snapchat removed the dedicated games tab from user profiles. Throughout 2023, the remaining playable Snap Games are expected to disappear entirely from the app.

The winding down of Snapchat’s gaming efforts reflect a calculated shift in business priorities. The company is funneling its talent and resources into more promising areas like AR, advertising, and premium content. While discontinuing games likely disappointed some users, it allows Snapchat to focus on what it does best – reinventing the camera and social media experience.

The Future of Mobile Games

While Snapchat steps back, the overall mobile gaming market continues to grow. Global mobile game revenue is projected to surpass $136 billion by 2025. Downloads could reach over 204 billion.

Leading platforms like Roblox, Call of Duty Mobile, and Candy Crush remain massively popular. Hyper-casual games like Fun Race 3D are also surging in popularity thanks to TikTok and other discovery channels.

As devices become more powerful and 5G expands access, cloud-streamed games like Xbox Cloud Gaming will remove hardware barriers to entry. Major franchises are investing more resources into custom mobile titles rather than just ports.

Mobile gaming is on track to eclipse console and PC gaming revenue in coming years. Even as Snapchat drops out, the broader industry momentum remains highly promising.

Cloud Gaming Services Gain Traction

Cloud gaming platforms that stream games directly to devices are catching on. Services like Xbox Cloud Gaming, Google Stadia, and Amazon Luna remove the need for downloads, high-end hardware, or mobile storage space. Users can instantly play console-quality games by simply accessing a web link.

Cloud gaming makes AAA franchises more accessible on mobile. It also enables users to continue gameplay across devices seamlessly. 5G networks will further reduce latency. If priced attractively, cloud services could disrupt the dominant premium app store model.

Blockchain and AR Integration

Blockchain technology and cryptocurrencies are making their way into gaming through features like digital item ownership and NFT-based economies. This opens up new monetization models beyond traditional in-app purchases.

Similarly, the integration of AR and VR could make mobile gameplay more immersive and interactive. Niantic’s Pokémon GO demonstrates the possibilities for real-world augmentation and social connection.

As these technologies mature, they are poised to unlock new experiences that disrupt established mobile gaming conventions.

Impact of AI

AI could also revolutionize game development and personalization down the road. Procedurally generated content powered by machine learning can enable vast, highly variable worlds while reducing developer overhead. AI bots and digital assistants can provide customized recommendations and adaptive difficulty tuning.

As AI research progresses, expect to see substantial innovation in areas like computer vision, natural language processing, generative content creation, and reinforcement learning applied to gaming.

Conclusion

Snapchat’s decision to remove games makes strategic sense given the company’s current business priorities. While some users are understandably disappointed, Snapchat is placing its focus on more promising opportunities in augmented reality, advertising, and premium content.

The broader mobile gaming industry remains highly vibrant, with strong forecast growth. Cloud gaming, cryptocurrency integration, AR, AI, and other emerging technologies could all drive the next evolution in mobile gameplay and monetization.

While Snapchat retreats from the gaming arena, plenty of existing competitors and newcomers aim to capitalize on mobile’s enormous gaming potential. The boundaries and formats of mobile games will continue advancing rapidly in years to come thanks to nonstop hardware improvements, 5G connectivity, and ingenious innovation.