In 2019, the founders of Snapchat still had the goal of making the platform a gaming destination. Now, around three years later, the company is rowing back and has to make some cuts.
Like Netflix, games aren’t worth Snapchat
Gaming is always current and consists of a huge industry that is constantly evolving. Reason for many portals to jump on the bandwagon and deal with it build another foothold. Netflix is trying to do the same. So far, the streaming giant has not had any great success, but the company still has big plans. However, Snapchat is different.
In 2019, Snapchat got its own gaming platform, Snap Games. It should allow Messenger users to play multiplayer games with friends. All released games were free and funded by in-game ads – but apparently that wasn’t enough, because the platform has now been put on hold.
Snap CEO Evan Spiegel recently announced that the company needs to trim the cost structure of this program to avoid further losses given the low revenue growth. You have to adapt to the market environment. This results in numerous redundancies, affecting around 1,300 people, and cuts, by which Snap wants to save 500 million US dollars in the end (Source: Engadget).
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Snapchat: what’s next?
After freezing the games department, Snapchat is now set to undergo a major restructuring. You want to strengthen yourself Focus on community growth, augmented reality (AR) and revenue growth. In order to do this as efficiently as possible, all projects not related to these three areas are “discontinued or receive significantly reduced investments”.