“Hypercasual” Video Games Are All the Rage

Investors Pour in Millions

Interest in “hypercasual” video games took off during the pandemic and continues to rise. These games are simple, easy-to-learn, and include repetitive challenges such as stocking a virtual refrigerator or painting digital nails. The number of downloads has ballooned from 7.51 billion in 2019 to 12.6 billion in 2020 and 15.6 billion in 2021.

Amid skyrocketing demand, gaming companies have attracted millions of dollars from venture capital and private equity companies. The cash influx has some market observers concerned the market may be getting oversaturated.

Many Flop

Since these games are developed quickly and at a relatively low cost, studios produce a lot of them to test out which ones get traction with consumers. Voodoo SAS, which is backed by Goldman Sachs (GS), is one such creator that has an average hit rate of two successful games per 800 launched.

Copycat games are also a popular strategy. These are where a developer changes a competitor’s game enough to sidestep intellectual property rules so as to launch its own version of a game that’s proven to be popular.

New Bells and Whistles

Due to the simple nature of the games, players tend to lose interest quickly. Gaming companies have had to constantly add new users to maintain their bottom lines. More recently, some have shifted their strategy to focus on keeping the players they already have. Other companies are looking for ways to make money outside of advertising.

For example, Voodoo is expanding its offering of games that provide in-app purchases. The company is also looking to drive sustained engagement with prizes and long-term challenges. As the competition heats up, gaming enthusiasts are likely to enjoy new ways to experience their favorite pastime.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

James Flippin ABOUT James Flippin James Flippin is the son of a financial advisor who grew up hearing and learning about bond yields, interest rates, the stock market, and the ins and outs of Wall Street. After stints as a licensing and business broker for Marcus and Millichap in New York City, James moved into broadcasting and became a reporter and anchor. He covered crime, politics, finance, and tech at NBC News Radio while working part-time as a producer for SiriusXM. James graduated from the University of Delaware with a bachelor’s degree in political science and economics. He's also an accomplished podcaster with over 10-years of experience.

TLS 1.2 Encrypted
Equal Housing Lender