Sandbox technology can revolutionize the gaming market

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The last decade in the global gaming industry is undoubtedly marked by the advent of mobile gaming, which has completely changed this industry. The distribution companies of the past were the ones who dictated what the gaming market would look like, lost their power in favor of the free market, and today the easy game distribution is amazing and allows players to enjoy an endless variety of games.

The last decade marks a renaissance of the gaming market, which has experienced significant growth, estimated to bring in revenue of around $ 175 billion by 2020, and according to Newzoo, one of the largest gaming research companies in the world, it is expected to bring in no less than 200 in 2023 billion dollars.

The availability of the games and the transformation of the smartphones that each of us has in our pockets today into the leading platform where users use their games, which currently occupy about 45% of the global gaming market according to the gaming companies’ profit data, has done wonders for game developers too and has opened up for them a whole world of limitless possibilities.

The economic model for gaming companies

As mentioned, the entry of smartphones into the gaming market has led to a jump in profits at gaming companies, which mainly come from various purchases within the game itself, such as skipping or opening unique scenes, buying characters and various accessories for them, or buying coins, tokens , diamonds or other ways to buy in the game.

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The significant increase in the last decade in the use of mobile devices as the main gaming platform and the transition of cellular networks to 5G technology, which is gaining momentum these days, opens a unique window of opportunity for game developers, makes gaming of high quality available, and take the gaming industry one step further.

On the other hand, the opportunity that opens up for game developers also highlights the need for advanced segmentation capability, to tailor content and experience at the most accurate level, on the one hand to retain players long-term and maximize the benefit of each of them on the other.

The gaming industry in the last decade has, after the advent of smartphones as the main gaming platform, become a much more accurate industry based on different economic models. These are supposed to predict the effect of optimization on the game, including promotions or features, and know if the players will like it, which will make them spend more money, which will increase the revenue for gaming companies. Sometimes a small function can make a big difference, and in an instant, millions of dollars are poured into a company pocket in a short amount of time.

Optimizations in the game are performed every day by game companies, which daily check new features, which require continuous monitoring, of all the necessary aspects, to predict whether it is a successful feature, including daily earnings, use of features, inputs in the game, conversion rates between in-game traffic and purchases and more.

When game companies introduce optimization, such as a new feature to the game, they take a lot of risk. Players may not like the feature and a wave of departures may begin. Gaming companies often go on their toes, with the addition of the feature, and entire departments are on the pulse when it comes to getting one of these into the game.

Human experimental players to virtual AI players in the sandbox

Today, to allow gaming companies to predict in advance how optimization will affect the game, gaming companies have entire departments whose job it is to test the new feature or campaign. The experiments in the game are designed to understand the degree of satisfaction of human players from it, which will also translate into revenue. Today’s approach is based on trial and error and in front of a wider audience.

The many elements that make up the game and the need to consider many factors make the craft of adding the new feature or campaign very complex.

The A / B test, which is the dominant approach, is designed to examine the effect of optimization on the game; it is slow, not always accurate enough, is limited in player-to-player play, and does not simulate a wide range of scenarios and possibilities.

This creates a need for technology that will allow gaming companies to predict in advance whether the optimization they intend to put into the game will succeed and will cause the player to spend more money through various purchases it makes.

Gambling companies know that the profit they earn from each player should be higher than the amount they spent on the various marketing tools designed to attract him to the game (ROI), the player must be committed to the game and love to play it, and on the other hand, they should make the player make more purchases.

Improving the predictability of the quality of the game and moving from a world of players’ gut feelings to a world with the image of many virtual players is changing the gaming experience again. Companies using AI to predict how users will respond to the new optimization coming into the gaming industry are likely to be the next hot thing in the global gaming market, which is only growing every year, especially in the Covid-19 era and the social distance it imposes on us. Using a “sandbox” and simulation approach allows these companies to simulate hundreds or even thousands of “what ifs” scenarios, almost in real time, much faster and cheaper than the current approach in a way that reduces risks.

The simulation “sandbox” technology provides real-time data on the economic indicators that gaming companies examine, allowing them to examine the success of optimization, such as conversion rate, LTV, amount of revenue from features, interruptions, and more.

A solid and robust simulation engine allows gaming companies to make better decisions about game development and the new features and campaigns they test every day, which will significantly increase their potential earnings.

The global gaming market, which is only expected to grow in the coming years, is in a peak period, and the possibility of arranging in advance a large number of different simulations and scenarios, which provide accurate financial data on functions, campaigns and possibly other game optimization, is very valuable. Especially as the engagement of programmers and developers gets more and more expensive, players’ simulation technologies will also shorten the duration of game development and allow players to enjoy an even wider range of breathtaking virtual worlds.

Guy Bar Sade is the co-founder and CEO of Simpool.

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