Home Gaming Industry InsightsYggdrasil’s Approach to Game Creation Economics

Yggdrasil’s Approach to Game Creation Economics

by Sienna Marques
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Yggdrasil's Approach to Game Creation Economics

Online casinos operate primarily in the entertainment sector, and maintaining player engagement requires continuous innovation. With consumers inundated with various entertainment options, a lack of originality can make it challenging for any product to maintain interest.

The online casino market sees thousands of new games launched each year, with reports suggesting an annual increase of about 10% in the number of releases. However, sheer quantity does not imply true diversity. Many developers prefer to rework existing games due to the inherent risks of creating something entirely new, opting for familiar mechanics that have already proven successful.

James Curwen, CEO of Yggdrasil, identifies this paradox as central to the industry’s ongoing challenges. "The industry has a content problem," he states. "There are thousands of games being released, and too many of them are variations of something that already exists.

"Part of the reason is economics. When games take months and significant money to develop, people naturally become risk-averse. Building on something that already works becomes the safer option."

To address this challenge, Curwen advocates for a reevaluation of the risk-reward equation in game development. By enabling creators to develop and test concepts more swiftly and at a lower cost, the repercussions of a failed project diminish, making it easier to justify pursuing innovative ideas.

"Technology changes the equation," he asserts. "If we can make development faster and significantly more cost-efficient, creators can afford to experiment again.

"I’ve said before that I think we’re moving towards the end of the traditional reskin model. Players don’t need another 100 versions of effectively the same game." Curwen's goal is to empower talented creators with the freedom to explore more concepts.

Yggdrasil has introduced two groundbreaking tools aimed at revolutionizing game development: Game in a Box and Studio in a Box. Game in a Box is structured to enhance the development workflow, refining how game concepts progress from initial idea to final product. This system offers creators extensive control over their projects by streamlining the various stages of production. Currently, Yggdrasil uses the platform internally and is piloting it with select partners.

Curwen highlights Raptor 2 as a case study for this approach, revealing that it underwent a staggering 17 iterations in just the first two weeks of development. "Speed of iteration is probably the biggest difference," he reflects. "Traditionally, every significant change can create another development cycle involving several different teams. With Game in a Box, the creator can iterate much closer to real-time."

Crucially, Curwen emphasizes that these efficiencies should serve as a means to an end rather than being the end goal themselves.

"The ambition isn’t to use technology to make average games faster. It’s to give talented creators the freedom to try more ideas and hopefully produce better games," he adds.

As Yggdrasil progressed with Game in a Box, an opportunity arose to democratize game development further. Traditionally, setting up a game studio required substantial resources and infrastructure, from hiring developers and QA teams to maintaining compliance technologies. Alternatively, acquiring an established studio is another option that comes with high investment costs.

Many industry players hold compelling ideas but are deterred from creating their own studios. To address this, Yggdrasil designed Studio in a Box, where Yggdrasil manages the technical and infrastructural details, allowing its partners to focus on branding and creative direction.

This approach, according to Curwen, embodies the philosophy of "democratizing game creation."

"The priority is to prove the model properly; make sure the games perform and demonstrate that it works commercially," he states.

Currently, the model is being tested with Eeze, a live casino supplier, which is the first to adopt Studio in a Box as it seeks to extend its original content into the slots market. Using Yggdrasil’s framework also allows Eeze to connect with a broader distribution network. The first games are anticipated by year-end, aiming for a release rate of two games per month. Curwen believes this signals a significant interest among established gaming companies to control their content strategies more effectively without the overhead of a conventional studio.

The potential for this model to benefit a wider array of creators is significant. Curwen asserts, "You shouldn’t necessarily need 100 people and millions of euros of infrastructure to have a great idea and turn it into a successful slot."

Lowering the barriers to entry for game creation could enable a broader spectrum of contributors, including established and emerging studios, operators, suppliers, and new entrepreneurs.

"The big change is that technology can increasingly provide the infrastructure," he believes. "The creator provides the idea. And I think that will make the industry much more interesting."

Yggdrasil envisions Game in a Box and Studio in a Box not just as internal tools but as platforms to foster a larger ecosystem of creators, with Curwen noting that proving the commercial viability of the model is paramount.

Looking ahead five years, Curwen predicts that the landscape of game development will transform significantly. He asserts, "I don’t think the successful studio of the future necessarily has hundreds of people. It could be a relatively small group of extremely talented individuals with great ideas, strong brands, and a keen understanding of players, enhanced by technology that manages much of the heavy lifting."

This shift also alters the competitive landscape within the industry. As development capabilities become more accessible, scale will matter less than creativity and understanding of player engagement.

"It becomes less about how many developers you employ and much more about how creative you are and how well you understand the player," Curwen explains.

In an industry already generating content at a massive scale, this distinction holds significance. The promise of Game in a Box and Studio in a Box lies not merely in increasing the number of games available in a saturated market, but in providing creators with the freedom to innovate.

Ultimately, Curwen asserts, "Technology handles more of the complexity, while people concentrate on creating great games."

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