Work / Yes2Games

Signing 5 of 50 game studios in Indonesia, each deal priced on my model

Yes2Games needed more games, and in Indonesia there was no going rate for a deal. I marketed three events that brought most studios in, built a model to price each deal, vetted 50 studios and signed five.

What changed

5 of 50studios signed from those vetted (10%)
3events that brought studios to us, two on campus and one online
8%projected annual revenue lift from the model
49games in the portfolio
About
HTML5 games publisher, Singapore (remote)
Portfolio
49 games across Playgama (220M monthly active players) and Yandex
Focus
Sourcing and buying games, retention-led spend, game launches
Tools
Deal-economics model, D7 / D30 retention analysis, Salesforce
4 min left

The problem

Yes2Games is a Singapore publisher of browser games. It had 49 games on Playgama (220 million monthly players) and Yandex. It needed more.

It bought games from studios in Indonesia, where there was no going rate for a deal. Without your own price, you only learn what a game was worth after you sign.

Getting studios to come to us

First, studios had to pitch to us. I marketed three events:

Two on campus at PENS, a polytechnic university in Surabaya.
One online pitch event, like Shark Tank. Developers pitched a game, or their whole studio, for us to buy.

No paid ads. Studios heard through partners, referrals, event listing sites, campus posters and word of mouth. Most of the five studios we signed came from these events.

One PENS event launched Zero One Protocol, a puzzle game made by PENS students and published by Yes2Games. I wrote the plan: a speedrun contest with a USD 1 entry. Read the event plan (PDF).

Four kinds of deal

The five deals weren’t all the same. Each type puts the risk on a different side.

DealWhat the studio getsWhat Yes2Games gets
Buying the game outrightOne paymentFull rights to the game
Exclusive licenceA fee for a set periodThe only right to publish it for that period
Revenue shareA cut of what the game earnsLess money at risk upfront
Buying the studioA price for the companyThe team and the games it owns

If you buy a studio, check it really owns its code and art, and that the people who built the games will stay.

Model first, then negotiate

Before any negotiation, I built a deal model: what a game was worth to us, against what the studio would accept. Every yes or no had a number behind it.

How it worked
Source. Campus and online events, partners and referrals.
Vet. 50 studios screened against the same criteria.
Model. What each game was worth, against what the studio would accept.
Negotiate. I ran the negotiations myself.
Close. 5 studios signed.
Studios vetted and signed
Vetted
50
Signed
5 (10%)

The model projected an 8% annual revenue lift from the acquisitions.

Spending where players stay

Signing games was half the job. The other half was deciding where the marketing money went.

I ranked all 49 games by how many players were still playing after a week and after a month (D7 and D30). Marketing money moved to the top fifth of games, and revenue per dollar spent went up.

Two launches

I worked on pricing, strategy and partnerships for Zero One Protocol, which launched on Android, iOS and Steam. I also worked on launch marketing for NSR, a racing game. Some graphics from both:

What I’d do next time

I’d keep the same order.

Get studios coming to you. Most signings came from the events. More studios to compare made the model useful.
Write the model before you negotiate. Then you know your walk-away point before anyone is in the room.
Match the deal to the proof. A game players stick with can be bought outright. An unproven one suits a revenue share, so the studio shares the risk.
Check ownership early. The code, the art and the people are what you’re buying.

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