Echo Yankee Games: Boosting Profitability

Echo Yankee Games, a mobile gaming development agency, seeks to increase profitability. The case explores various aspects of their business, including revenue streams, cost structure, and market positioning. Key considerations include:

  1. Profit margins across game genres (Trivia, Action, Puzzle, Word)
  2. Marketing optimization to double profit margins
  3. Break-even analysis for action game development
  4. User acquisition costs and customer lifetime value

The analysis reveals that Action games contribute 50% of profits, and focusing on this genre could significantly impact overall profitability. However, the proposed marketing campaign for user acquisition is not cost-effective due to low retention rates. Recommendations include prioritizing Action game development, re-evaluating marketing strategies, and exploring ways to improve user retention and revenue per user.