Lucidtec Studio LLC

In the lifetime revenue of games, about 5% break $450k, while 20% break $100k. According to this, we predict that under two months, we will find one game that does well with a few others that perform decently. Our advantage as Lucidtec Studio is our well-coordinated labor force that has lower overhead costs than most competitors. Despite this, our major challenge is the availability of finances needed for marketing and expanding the labor force to create more games. 

Market Analysis

The global mobile gaming market is showing increasing growth, driven by innovations in technology, rising disposable income, and the popularity of mobile devices. Reports show that the mobile gaming market will continue to expand by billions of dollars each year, reaching $153.2 billion by 2027.

Business Model 

Lucidtec Studio's goal is to create engaging and innovative mobile games for smartphone users worldwide. We aim to create a wide range of mini-games, hyper-casual, and hybrid-casual games that will appeal to a broad range of customers. We plan to test each game for five days with ads and determine the ones that have more potential before focusing on them. This model will help us to target games with more revenue potential and maximize our investments.

 Another stream of income we are currently utilizing is contracted work from other companies. We just secured a $14k contract for a months work with potential for more to come from the same client. We are growing but need that extra push to break-through. 

Financial breakdown (current):

$5k/mo salaries core team

Includes: 

Proposed financial breakdown ($4k extra)

+ 3 more Unity developers 

+2 more model assets designers

+1 UI  specialist

+1 QA specialist 

$1000/mo for an office 

One-time $5k for office equipment 

$10k+ a month in test ads,

($1k per game)

$15k+/mo ads for winners

-performance will determine how hard we hit push each game, constantly watching metrics

(Most likely 3 winners per month) 

Plan of Attack

Lucidtec Studio firmly believes the best mode of attack is to play the numbers and trends game. By researching top performing casual/hyper-casual/hybrid-casual games and putting our own input into them. Much like how casinos operate, we understand that we can’t expect every hand we deal will make money, but controlling and getting to the ones that do is of utmost importance. So we propose expanding our team and creating a mandatory 8-10 games a month for our in-house titles. Every 2 months we should theoretically have 1 of the games that creates $450k revenue over its lifetime, and 2 other titles that break $100k for its life cycle.

Marketing

Plan on using $1000 initially on every game created for an advertisement campagin that can test the KPI metrics and performances of each game. If the 1 day retention rates do not break 30% (industry standard) then we know to immediately stop paid marketing. If it breaks 30% you generally have a winner because it is considered excellent. 7 day retention rate is another we can study before making a decision as well. If 12% keep the app for 7 days or longer it is a promising sign. Another number we will pay attention to is the average lifetime revenue per user. That will be final say as to if the game is worth paid marketing efforts. If the average lifetime revenue per user is higher than the cost per acquiring said player, then it’s basically printing money and we only stop when those numbers become even and stabilized. 

   Facebook ads, google ads and In-game ads will be our main mode of marketing to start off. We can venture off into influencer and other means to market once we pick clear winners.