The concept of a game release model is not new to the game industry. However, mobile game publishers have become increasingly important due to changing and complex policies, rising consumer expectations for localized content, and increasingly disruptive external environments such as the pandemic that has reduced travel.

In some markets, working with a publisher may be the only way for foreign developers to enter the market. As such, publishers that can help developers navigate their local markets are an integral part of the mobile ecosystem. We conducted research and interviews with publishers and developers working with third party publishers in the Asia Pacific region in order to better understand and build successful partnerships.

Here’s a closer look at some of the definitions:

  • A first-party publisher is a game released by the developer himself.
  • Second party publishing is when a publisher works closely with a developer through a joint venture.
  • Third-party publishing is when a developer develops a game and commissions an independent publisher to publish it.

In this article, we’ll focus on the experiences and insights of game publishers, and then we’ll share what developers think about third-party publishing.

First, let’s look at the basics of how a game publisher works.

For the 28 publishers surveyed across the Asia Pacific region, their top priority and biggest challenge was identifying quality games to license and publish.

When publishers are looking for games, they often contact developers directly, either within existing resources or through various game events, to select games based on market fit, gameplay, and game metrics. Since the outbreak, that process has slowed. Once a publisher identifies a game they are interested in, they usually sign a license for two or three years. The agreement usually provides for revenue sharing, a minimum revenue guarantee (the publisher must pay a fee to the developer regardless of the actual revenue generated), and an upfront annual licensing fee.

In terms of partnerships, most publishers rely on developers to support technical optimization or troubleshooting. Some publishers are willing to form strategic partnerships with developers, such as providing game design guidelines or even forming joint ventures to continue working on projects in the future.

Below is a summary of our interviews with publishers in Asia Pacific, including Gamania (Taiwan), VNG Games (Vietnam), IndoFun Games (Indonesia), Neocraft (China) and Kakao Games (Korea).

  • A common misconception is that publishers are only after the short term. While some publishers do adopt this strategy, others with an eye to the future are interested in building long-term, sustainable partnerships. This means the game will continue to run for three to five years or more and will be expanded to other markets or co-developed on new projects. It is in the best interest of publishers to maintain close relationships with trusted developers so that they can prioritise promising new games in development.

  • Publishers tend to focus on specific genres and markets. Developers can use this information to determine the right partner, and developers can use the publisher’s track record to make the right choice.

  • Developers often choose to self-publish their games in markets where they are experienced, and partner with publishers in other markets where they are unfamiliar. For larger games, developers can even choose to work with different publishers in each market. In this case, developers must align themselves with publishers in different markets in order to maintain fair and consistent pricing and marketing strategies for game players.

  • The biggest value publishers bring is their extensive local partner pool. This includes their relationships and understanding with local Kols, media organizations, IP holders, localization agents, customer service agencies and communities. Having local partners can be very helpful, especially in some areas still affected by the outbreak.

  • Publishers offer more than just language translation and customer service. They can also advise on local user behavior research, potential market size, marketing optimization, mobile or Internet specification testing, and provide monetization advice such as pricing. This allows developers to focus on their core strengths, such as optimizing product stability and content.

  • Publishers often have a good understanding of industry standards and the preferences of local gamers in particular markets. This allows them to tailor LiveOps events on demand, create meaningful community interactions, and provide advice on gameplay and creative design to reach more users. Specialization is an efficient way for developers to scale quickly with low risk.

  • As with any successful partnership, both sides need to communicate openly and often, and provide feedback based on facts and figures. Expanding into new markets is not about simply copying what has been done elsewhere. It requires multiple Beta tests, focus groups, A/B testing, and more by creatives to ensure that the content and gameplay is well designed for local gamers.

  • In the past, hardcore games like MMORPGs and SLGS were the genre of choice for publishers. However, as the industry has grown and gamers have more diverse tastes, the market is opening up to more genres. This means that publishers are no longer choosing only games with strong IP or from large studios, but are now licensing from small to medium developers building medium and casual games.

As we look ahead to future trends in the industry, publishing companies are likely to offer modular services, such as community management, customer service, or marketing, rather than a full suite of third-party publishing services.

Due to the pandemic, remote publishing may be the only solution for developers without a local office. However, this will become increasingly difficult as gamers become more sophisticated and local policies change. Developers are unlikely to become experts in every core market unless they have reached a certain scale. As such, local publishers are important partners for developers to consider, especially in the early days of a global launch or when they don’t have the energy to closely monitor and optimize certain markets.

Stay tuned for this post, as we review the results of our research and interviews from a developer’s perspective, and share a checklist of best practices to help you better identify high-quality games and partners, get your game launched, and reduce potential issues.

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