Without support from services such as those provided by Flexion, the opportunity cost for developers of investing in new distribution and solving fragmentation is prohibitively high. This follows because of: a) new channel support diverting resources from existing stores and b) new channel support having far longer payback times than user acquisition or feature investments in existing distribution.
Most importantly – to be successful with distribution to many stores, developers need to divert resources from their core business - making games. Developers end up with a dilemma: a) invest in long term growth by diversified distribution but risk losing short term momentum in existing stores OR b) defend position in existing stores by foregoing new channel investment. Neither scenario is preferable. Developers struggle to balance the investment case and many end up foregoing investment in diversified distribution.
As a result, many channels are missing out on content. Open market distribution channels could be growing faster with more quality content. With effective ways of eliminating the developers’ dilemma, overall market growth could be even stronger than it is today. The features and services which were developed with the support of the Gamesmondo project allows Flexion to solve the developer’s dilemma.
Fragmentation is surmounted through a three-part value proposition comprising technical enabling, technical enhancement and service management. Flexion’s service platform manages aspects such as integration of 3rd party payments and features, in-application purchase and user license management. Flexion manages relationships with stores, undertakes retailing and promotion and manages revenue conciliation and payment to developers. Developers get a consolidated route to a fragmented ecosystem through a single distribution partner.
All parties in the value chain benefit as a result.
1) Developers can reach distribution channels which they previously did not see as potentially profitable. As a result, they become less dependent on distribution through a single store, can target users more effectively and can maximise the growth potential of their games through increased exposure to end-users.
2) Distribution channels get access to content they were previously unable to attract and can play a significant role in Android games, as well as drive significant revenues from games. This drives employment and profitability but also increases the overall level of competitiveness in the market, ultimately creating better services for end-users.
3) The overall gaming eco-system becomes more open and competitive
4) End-users benefit thanks to more choice and variation, improved game discoverability and the naturally improved value propositions offered by stores and developers as a result of increased competition.
