Will Pokémon Go be the next Groupon?

One is a mobile gaming app and the other is a group buying site. Although there are many different differences between the two, Pokémon Go may suffer the same fate as Groupon: rocket-like lift, but lack of fuel plans to keep flying.

Pokémon Go has other similarities with Groupon. Both are location-based applications/websites; they all rely on the emerging technology; both business models have hidden concerns: Apple and Google have changed the developer income ratio policy, users need to subscribe for a year after the developer can get A higher income ratio, which requires the Pokémon Go player to become a long-term active user, which will have an impact on its in-app purchase model; if Groupon cannot turn the group purchase user into a repeat customer, its discount mode will make Local business is not worth the candle.

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It's just a brand new "Icarus" with glass, monocrystalline silicon, and a touch screen interface (Icarus is the son of Daedalus in Greek mythology, fleeing with Dadarus using wax and feather wings In Crete, the ecstasy Icarus forgot his father's jealousy, the higher the flying, the wax on the wings was melted by the sun and fell into the water. Later, people metaphored it as a self-important arrogant teenager. Behind the head, despising the power of nature and being rewarded). For companies that don't pay attention to modern prophetic stories, they are destined to stage the fate of prophetic stories again and again.

How does the giant fall?

Nintendo and partner Niantic officially released Pokémon Go on July 6, and its daily active users surpassed Twitter in a few days. Pokémon Go's augmented reality game became the most popular mobile game in history in just a few weeks.

But "Pokémon Go" quickly reached its peak, and it began to decline in less than two months. Its daily active users have been falling, losing more than 10 million users. In fact, few companies will experience a significant decline after they take root.

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Groupon's historical trajectory is similar to Pokémon Go. Groupon was officially launched in 2008 and was hailed as the fastest growing company in history. Merchants flocked to the market, and consumers across the United States also registered, the momentum is just like today's "Pokémon Go." But now Groupon is laying off its staff on a large scale, shrinking its scale on a global scale, and gradually losing the trust of investors. The craze is also rushing, and it’s rushing.

Lessons learned

The development of "Pokémon Go" is in fact consistent with the general rules of the game world. Nintendo's first mobile game "Miitomo" has experienced similar situations. But with the augmented reality element, Pokémon Go could have had a very different history. But three key mistakes have led them to the same fate as Groupon:

1. Not prepared for viral growth. Entrepreneurs dream of exponential growth, but this is actually a nightmare. Whenever Pokémon Go goes live in a new area, the game becomes very unstable due to server overload. Therefore, Nintendo has been fixing these issues since the release (there are still many bugs), rather than iterating over the product. This is a mistake made by Groupon and they acknowledge this.

2. Did not create a social circle as soon as possible. Frankly, Pokémon Go is a bit boring. Because it lacks a clear product roadmap, once you have conquered all the elves, your only choice is to capture them again. People get bored, lose patience with the game's glitch, and eventually leave.

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Social is the original purpose of the game, creating a community where players can be retained. That's why the lifecycle of social networks is longer than gamification-mode apps like Foursquare. It should be affirmed that Pokémon Go did a good job at first, but soon lost its luster.

3. Pokémon Go pays too much attention to the game itself. Pokémon Go was originally a truly simplified and implementable product that did not emphasize the commercial and interactive potential of the application at the beginning of the release. Nintendo should have encouraged developers to build a world beyond Pokémon Go instead of closing them. One-on-one combat modes, information interactions, and local business partnerships can be an element of retaining players.

You need to build an ecosystem. For example, Google has developed a search engine to provide users with useful free information, and thus won the consumer, its user base is growing, and Google is expanding its search products.

Failure may not be a foregone conclusion

Has Pokémon Go failed? It can go down, but it is not easy.

An important difference between Groupon and Pokémon Go is that Pokémon Go is technically superior to other competitors. Because Groupon's model is simple, countless imitators can emerge overnight. But augmented reality is more complicated. Niantic has released the augmented reality game "Ingress" in 2011, and has more experience in making up for the shortcomings of Pokémon Go.

"Pokémon Go" proves that AR is likely to develop into a platform. If you can emphasize the community more than the game itself, this game has a great chance to survive. After a decline in 2011, Groupon launched Groupon Goods and tried to build a community. This service now accounts for 50% of the company's receivables, but this does not allow it to restore its former glory.

"Pokémon Go" still has time, but YiViAn believes that it is only possible to quickly iterate to recapture the losing user base.

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