Chris Morrison of Inside Social Games wrote an interesting analysis about Digital Chocolate over the Thanksgiving holidays.
Now that I’m not eating turkey and driving up and down between San Francisco and Los Angeles (fun times), I finally have the time to post about it.
In his article, Mr. Morrison points out the obvious for anyone who likes to look at Facebook game analytics: Digital Chocolate’s recent Facebook games strategy is working.
In the past 30 days, Digital Chocolate has released 6 games. True, 3 of them are not innovative and remarkably similar to their hit game Millionaire City, but gamers don’t seem to mind.
As of today, most of these games are doing very well. Six of it’s games are generating 500,000 monthly average users (MAU’s). Four new games that have been launched over the past 30 days have grown to over 1 million MAU’s each (Hollywood City, Vegas City, Island God, Epic Fighters).
Digital Chocolate games attract 24 million MAU’s, putting it in position to over-take Playdom as the #3 largest social game company on Facebook.
And this is just probably just the start. In the article, Digital Chocolate President Mark Metis is quoted as saying that most of the growth is based on virality and not ads. I have personally noticed very few ads for these games on Facebook. The fact that they have not spent advertising money yet, suggests that each of these games can double or triple in size once they start to buy marketing.
Secondly, Metis suggests that Digital Chocolate has plans for more game launches in the near future. Given that they have launched 6 games in 30 days, I would take this for face value.
The biggest thing going for Digital Chocolate is the trend toward social mobile games. The big buzz now is on social games that work cross-platform on mobile devices like the iPhone and Facebook.
Digital Chocolate has started to prove that they can successfully create Facebook games but they have nothing to prove in mobile. They have been creating successful mobile games since they launched years ago. Mobile is in Digital Chocolate’s DNA.
If social mobile is the next big thing (more on that later), then Digital Chocolate is poised to be a huge contender in this space. In which case, Digital Chocolate’s successful 4th Quarter is just a hint on future success for the company in the coming year.