The Hamburg gaming studio “InnoGames” has generated one billion euros in revenue. How did the German studio achieve this milestone?
This is InnoGames: InnoGames is a German game developer based in Hamburg. The company was founded in 2007 and employs over 400 people.
InnoGames primarily operates in the world of online and mobile games. As the studio reported, after 12 years of operation, it has reached a total revenue of one billion euros.
How InnoGames Became Successful
How does InnoGames make money? It all started in 2003 when brothers Eike and Hendrik Klindworth, along with Michael Zillmer, developed the browser game “The Tribes” from a hobby.
Player numbers exceeded expectations after the release – and the three founders decided to professionalize their hobby.
In 2007, InnoGames was founded – and the company consistently built upon online strategy games. This included games such as:
- The West
- Grepolis
- Forge of Empires
- Tribal Wars 2
- Elvenar
Subsequently, the company increasingly focused on the mobile market and further developed its original browser game concept. Nowadays, the games are playable across platforms – typically in a free-to-play model.
The strong focus on free games with optional payments ultimately paid off for the company. Forge of Empires reportedly generated over 500 million euros in revenue, accounting for the lion’s share of total profits.
Germans Love Strategy Games
Especially in Germany, the company’s games are popular. In particular, the German strategy game fan base has helped the company establish itself sustainably, Hendrik Klindworth explained to “VentureBeat“. They speak of a “core target group of German strategy gamers.”
But the USA and France have also become among the company’s highest-grossing markets.
Innogames says one of its successes was gradual growth. Other companies grew quickly and hired people rapidly. These companies have since disappeared:
One of our biggest challenges was to grow from a browser game company from the ground up and then to enter the mobile market. It took a lot of work, but it was ultimately successful.
Henrik Klindworth, CEO Innogames, to Venturebeat
In the future, the company plans to further expand its mobile side and continue developing its games. Are other models also possible? “I would never say no to PC platforms, especially if we could find additional players,” Klindworth told VentureBeat.
The mobile market is highly competitive: “But there are still many opportunities for games.”
Browser Game Companies Turn to Mobile and Boom
This is what it’s about: Alongside developments in PC and consoles, there is this parallel gaming market that started with browser games and Facebook games.
This market has shifted and expanded towards mobile in recent years. This is a global trend that can be observed everywhere. Innogames is the most successful German representative taking this path.
In the mobile sector, some companies are enormously successful and achieve substantial revenues. Innogames has managed to establish itself here.
For some time now, classical PC/consoles companies have been trying to break into this mobile market as it promises significant growth rates: Activision Blizzard is planning a massive growth in the global mobile market. This push by classical gaming firms with large game brands will surely intensify in the coming years.
Interestingly, the classic love of Germans for “their” building strategies is now breaking through.
