Supercell CEO confirms new strategy with split focus on live service and developing new game titles

Supercell CEO confirms new strategy with split focus on live service and developing new game titles

Story Highlights

  • Ilkka Paananen confirms Supercell’s splitting efforts between developing new games and scaling existing live games.
  • Paananen discusses how the company faced stagnation and acknowledged the need for transformation.
  • Supercell’s approach to live games now includes more structure, processes, and even middle management.

As a longtime fan and follower of Supercell’s groundbreaking games like Clash of Clans and Hay Day, I was thrilled to hear about CEO Ilkka Paananen’s recent revelations at Slush 2024. His candid discussion with Harvard Business School professor Jeffrey Rayport shed light on the challenges faced by Supercell in maintaining its growth trajectory and the bold steps they are taking to stay relevant in the ever-evolving gaming market.

In a recent discussion, Supercell CEO Ilkka Paananen revealed their new strategic approach for the game studio. Essentially, this strategy divides the studio’s efforts into two main areas. While one part is dedicated to developing fresh and innovative new gaming projects, the other sector concentrates on expanding and maintaining the company’s existing live games, which we can refer to as the growth or scaling side.

Ilkka Paananen discussed the Spark initiative focused on creating new game teams

At the Slush 2024 event in Helsinki, Finland, Supercell’s CEO Ilkka Paananen engaged in a cozy chat with Harvard Business School professor Jeffrey Rayport. During the Founder Stage discussion on Day 2, they discussed the topic “Game On: Sparking Growth Again at Supercell” to explore ways of pushing boundaries and fostering growth.

Supercell CEO confirms new strategy with split focus on live service and developing new game titles

As an ardent admirer, I’d like to share how Ilkka Paananen addressed the challenges that arose when Supercell, the gaming giant, veered off its growth path, with the larger gaming industry blooming around it. During a pivotal strategic session, he outlined how we tackled our slump by acknowledging our slide from the top 10 and recognizing the need for change to remain significant in the competitive landscape.

Regarding the two-pronged strategy, Ilkka explains how Supercell managed this hurdle by concentrating on two separate methods: one for developing fresh games and another for expanding established ones. For new games, Supercell opted to approach it like a startup, using a structured system to build robust, self-sufficient teams (which they refer to as cells).

Ilkka Paananen discussed the Spark initiative focused on creating new game teams

He also shared an example: “We have a new initiative called Spark. What Spark is all about is applying a very systematic approach to creating new game teams. Our mission is to be the world’s best company in creating these new game teams.”

In addition, he mentioned: “For instance, our team includes a seasoned psychologist who will collaborate with us in the evaluation process. What sets Supercell apart as a game company is that instead of approving game concepts, we endorse teams. Once we say ‘Supercell team’ or simply ‘cell,’ we have complete trust in them.

Contrarily, regarding the live games sector, where the focus lies on games currently available, Paananen emphasized that it needed to transform with a stronger framework, streamlined procedures, and perhaps even a layer of management – terms he previously considered as obstacles at Supercell. This transition necessitated the company to step out of their familiar territory, and Ilkka expressed his readiness for this change, saying “if this means venturing into uncomfortable territories, then so be it”.

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You can watch the full Slush 2024 Game On: Getting Uncomfortable to Reignite Growth at Supercell session in the embedded video, where the discussion begins at 33:20.

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2024-11-30 15:41

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