
During the past six months, it wasn’t hard to find mobile game developers complaining about how Gree was driving up the cost of user acquisition. The company was reportedly using its profits from its ultralucrative mobile social gaming network in Japan to bankroll a campaign in the U.S. Here, it paid lots of money to draw new users to its free-to-play mobile games. Gree bought so much mobile advertising that it drove up the ad rates past the point where they made sense. If a game generated a lifetime value per user of $2, it made no sense to spend $5 or more acquiring each user.
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