Strong Debut of Super Mario Run Clouded by Revenue Lag

Strong Debut of Super Mario Run Clouded by Revenue Lag
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Super Mario Run, Nintendo’s first full foray into the world of mobile gaming, might be encountering some growing pains, according to Bloomberg. The game was at the top of download rankings in 68 countries, but was the highest grossing game in only 14, according to researcher SensorTower.

The game, which features the company’s iconic plumber running across a scrolling landscape to rescue Princess Peach, provides free access to the first three levels, but requires a $9.99 payment to unlock the remaining 21 levels as well as other features. That’s a departure from the world’s most profitable mobile games, which are free-to-play but encourage users to buy items. Super Mario Run also came out late in the day, and users aren’t expected to start paying until they finish the first levels.

Within twelve hours of its release, Super Mario Run reached No. 1 in revenue rankings in the U.S. and 27th in Japan, up from seventh and 107th immediately after the release, respectively. The U.S. and Japan are the world’s second and third-largest app markets, according to researcher Newzoo. The release is the first full test of what the Japanese game maker can achieve after years of eschewing the thriving mobile-app market.

While Nintendo gave a hint of its potential with the success of Pokemon Go earlier this year, that title was only partly its own creation. Super Mario Run was developed mainly by Nintendo, with some assistance from partner DeNA. Expectations have swelled since the company announced a strategic shift toward embracing mobile in March 2015, adding almost $20 billion to its market value.

For now, the initial list of places where Super Mario Run will be available doesn’t include China, which accounts for a quarter of all app revenues, according to Newzoo. The decision to release the title first on Apple devices also runs the risk of alienating gamers on Android, which runs about two-thirds of the world’s 2.3 billion smartphones, according to the researcher. A version for Google’s smartphone software will be released sometime in 2017, Nintendo said, without specifying a date.