Türkiye’s gaming ecosystem continues to attract the attention of global investors in recent years with both its production capacity and investment and purchasing potential. However, as the market matures, the criteria used in valuing game studios are also changing. According to İlayda Bayarı, Vice President of Business Development at Xsolla EMEA, investors are no longer just looking at high download numbers or short-term revenue jumps.
User loyalty, sustainable monetization, growth capacity in global markets and operational maturity become more decisive in the exit process. İlayda Bayarı – Xsolla EMEA Vice President of Business Development The number of downloads alone is not enough For a long time, high download figures in the mobile game market were seen as a strong indicator to attract investor interest. However, with the increase in user acquisition costs and the intensification of competition, this approach began to change.
According to Bayarı, investors now look at how long a game can retain users after downloading, rather than how many times it has been downloaded. Retention rates, LTV, that is, user lifetime value and revenue continuity, are among the metrics that show the long-term potential of the studio more clearly. Dependency on a single game or a single channel is seen as a risk. One of the most important risks for game studios is that growth depends on a single game or a single user acquisition channel.
Although this structure can produce strong results in the short term, it can raise questions about sustainability for investors. On the other hand, studios that can generate income from different games, diversify their user acquisition channels and perform in different markets offer a more solid growth story. Teams that can acquire and retain users, especially in Tier-1 markets, create a more reliable profile for global investors.
New valuation metrics come to the fore. Although financial results are still important on the valuation side, they are no longer the only determining factor. According to Bayarı, investors examine LTV/CAC ratio, retention metrics, regular income flow, team history, live ops capacity and monetization diversity more closely. Teams that have previously worked on successful projects, product strategies that read the market correctly and a strong operational structure are among the factors that increase investor confidence.
Competence, especially on the live ops side, becomes more critical in studio valuation as it can extend the post-launch life of the game. Global growth strengthens the possibility of exit. In order for a game studio to achieve a strong exit, it is not considered sufficient to be successful only in the local market. Being able to generate revenue from different countries, establish scalable user acquisition and create a brand in global markets is becoming more important.
Alternative revenue models such as direct-to-consumer, or D2C, also attract attention in this process. Studios that can establish a direct relationship with the user without being completely dependent on platform commissions and classic store revenues have a stronger growth potential for investors. A new era for Turkish game studios. The Turkish game industry continues to attract attention on a global scale with its talented teams and fast production culture.
However, success in the new investment environment is not just about making a good game. Studios need to establish a data-based growth model, retain users, diversify their revenue channels and demonstrate sustainable performance in global markets. For this reason, game studios that will be on the radar of investors in the coming period; Rather than high download numbers, it will be those with strong metrics, mature operations, and a repeatable success model.
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