Appcharge: A New Alternative for Game Developers
As Apple and Google continue to battle with regulators and publishers over the monopolistic nature of their app stores, a startup called Appcharge has raised $26 million on a $100 million valuation to build an alternative platform for game developers. Appcharge sees itself as a kind of ‘Shopify’ for gaming, providing a platform for publishers to build their own sites for selling gaming currencies and other virtual goods directly to consumers.
A Solution to the Monopoly Concerns
Appcharge’s CEO and founder Maor Sason was motivated to start the company when working at his previous startup, Appush, a mobile gaming ads startup that he co-founded and led. Sason recognized the limitations of the current app store model, where developers are heavily reliant on Apple and Google for revenue distribution and have limited control over their own content.
The End-to-End Solution
Appcharge aims to provide an end-to-end solution for direct-to-consumer (D2C) sales, allowing users to come through various channels, including APK apps installed through third-party stores. This is in line with Sason’s vision of a future where users can access games and other digital content through multiple platforms.
The Funding and Market Trends
The funding round is notable given the current market trends for gaming startups. According to a report from Konvoy Ventures, the number of deals in the last quarter was down 14% on the quarter before, early-stage deals are at their lowest point in five years, and the overall market for gaming has only grown around 2% in the last year.
The Rise of Third-Party Stores
Apple introduced the App Tracking Transparency framework on iOS 14.5, which allows users to opt out from being tracked by advertisers on mobile. This has made it significantly harder and more expensive for apps to reach the right users. Additionally, browsers are blocking third-party cookies, making marketing attribution harder and more expensive.
The Growing Need for Alternatives
Higher Customer Acquisition Costs (CAC) mean less profitability for game developers. With more maneuverability around the app stores, a solution may be in sight. Creandum’s general partner Carl Fritjofsson writes, "This also coincides with the growing efforts of browsers to block third-party cookies, all of which serves to make marketing attribution harder and more expensive."
The Potential for Growth
Appcharge is positioned to complement other efforts in the gaming space. With its focus on D2C sales and its vision for a future where users can access games through multiple platforms, the company has the potential to tap into the growing demand for alternatives to traditional app stores.
Conclusion
Appcharge’s $26 million funding round is a significant development in the gaming industry, providing a new alternative platform for game developers. With its focus on D2C sales and its vision for a future where users can access games through multiple platforms, Appcharge has the potential to tap into the growing demand for alternatives to traditional app stores.
Key Players
- Appcharge: A startup that provides a platform for publishers to build their own sites for selling gaming currencies and other virtual goods directly to consumers.
- Creandum: An investment firm that participated in Appcharge’s funding round.
- Apple: The company behind the App Store, which has been criticized for its monopolistic nature.
- Google: The company behind the Google Play Store, which has also faced criticism for its monopolistic practices.
Glossary of Terms
- D2C (Direct-to-Consumer): A sales model where companies sell their products or services directly to consumers, often through online channels.
- App Store: A digital distribution platform for mobile apps, operated by Apple and Google.
- Customer Acquisition Costs (CAC): The cost of acquiring a new customer, including marketing expenses and other costs.
Related Topics
- Gaming: The industry that Appcharge operates in, which includes the development and sale of video games.
- Mobile Games: A subcategory of gaming that refers to games played on mobile devices.
- Virtual Currency: A type of digital currency used in online games or other virtual environments.
