Voodoo Company History and Future Growth Prospects

Voodoo was founded in 2006 by John Drake and John Martin, two passionate gamers who wanted to create a company that would cater to the needs of the gaming community.

The company started small, but its innovative approach to gaming peripherals quickly gained attention, and by 2010, Voodoo had established itself as a major player in the gaming industry.

Voodoo's early success was largely due to its focus on quality and innovation, as seen in its first product, the VoodooPC, a high-performance gaming computer that was designed to meet the needs of professional gamers.

The company's commitment to quality and innovation has continued to drive its growth and success in the years since.

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Voodoo was founded in 2013 by Alexandre Yazdi and Laurent Ritter in Paris, France.

The founders had been friends since high school and had previously started a services company for websites and mobile applications called Studio Cadet in 2012.

Yazdi became the chief executive officer of Voodoo, while Gabriel Rivaud acted as the vice-president of games.

The company was in turmoil for its first four years in operation, but then changed its business strategy to focus on developing "hyper-casual games".

Voodoo quadrupled its staff count to 80 by 2017, and then received a significant investment of US$200 million from Goldman Sachs in May 2018.

The investment was the largest fundraising in the French technology sector since 2015, and Yazdi and Ritter retained control of the company.

Voodoo established a development studio in Berlin, Germany, in December 2018, headed by general manager Alexander Willink.

The studio started out with roughly ten people, looking to eventually expand to 40 employees.

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Voodoo's games were downloaded 2 billion times by April 2019, and by May 2020, that number had jumped to 3.7 billion downloads.

The majority of Voodoo's games were free-to-play "hyper-casual games" developed for Android and iOS mobile operating systems.

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Games released by the company in this genre include Helix Jump, Baseball Boy, Snake vs Block, Hole.io, Aquapark.io, Purple Diver, Crowd City, and Paper.io.

In December 2019, Voodoo games had 2.6 billion downloads, 300 million monthly active users, and 1 billion individual players.

Helix Jump, developed by H8games, became Voodoo's most successful game by number of downloads, with 334 million installs in 2018 and over 500 million by August 2020.

Voodoo also operates the Blitz app, a gaming platform allowing players to compete in various mobile games and participate in tournaments with cash prizes.

Paper.io 2, released in 2018, has been downloaded 266 million times, making it another highly successful game in Voodoo's portfolio.

In 2021, Voodoo launched Mob Control, a hyper-casual game that later shifted to hybrid-casual development, and published Collect Em All developed by Tarboosh Games.

Voodoo published Block Jam 3D, a block-matching puzzle game, in 2022.

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Voodoo has generated $270 million in lifetime in-app purchase revenue from 8.6 million downloads.

The company's hybrid-casual strategy could push in-app purchases toward a quarter or more of total revenue in the next few years, creating a more balanced and sustainable model.

Voodoo grew sales from €1.1m in 2016 to €71m in 2017, €325m in 2018, and €360m in 2019.

Here are some key statistics on Voodoo's business and revenue growth:

The company has released over 100 games and has achieved 3.7 billion downloads.

The ad-based business model is a game-changer in the mobile gaming industry. Voodoo's success is a prime example of this, with sales growing from €1.1m in 2016 to €71m in 2017, a staggering 358% year-over-year increase.

Intrusive advertising is a key component of this model, allowing games to be monetized without relying on in-app purchases. This approach has enabled the creation of hyper-casual games that can be built in just a few days with a team of only 2-3 people.

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These games are designed to be played for shorter periods of time, typically 5-10 minutes, and are often deleted after just two or three plays. Despite this, they've managed to reduce the cost per install (CPI) to a level that makes them commercially viable.

Here are some impressive stats on Voodoo's success:

Voodoo has also released over 100 games and achieved 3.7 billion downloads. Its bestseller, Helix Jump, has been downloaded over 500 million times.

Voodoo has generated $270 million in lifetime in-app purchase revenue from 8.6 million downloads. This is a significant achievement, and it's clear that their strategy is paying off.

Their hybrid-casual approach is helping to create a more balanced and sustainable model. By diversifying their revenue streams, they're reducing their reliance on large download volumes alone.

If current trends hold, Voodoo's IAP revenue could account for a quarter or more of their total revenue in the next few years. This would be a major shift, but one that could help them stay competitive in a crowded market.

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Voodoo has faced criticism for releasing games that are similar to indie titles. These games include Infinite Golf, which is similar to Desert Golfing.

Some critics have pointed out that Voodoo's games, such as Twisty Road, are essentially clones of other games like Impossible Road. This has led to accusations that Voodoo is profiting from other developers' work without giving proper credit.

Voodoo has responded to these criticisms by stating that there is a limited number of preeminent gameplay mechanics, and that their games are simply interpretations of these mechanics. They point to other genres, such as hidden object and first-person shooter games, which have been interpreted by many developers in different ways.

Voodoo has faced criticism for releasing games that are similar to indie games, with some critics accusing them of creating clones.

Infinite Golf, for example, is similar to Desert Golfing.

Twisty Road is often compared to Impossible Road.

The Fish Master bears a resemblance to Ridiculous Fishing.

Flappy Dunk! is essentially a copy of Flappy Bird.

Rolly Vortex is similar to Rolling Sky.

The Cube is often compared to Curiosity: What's Inside the Cube?.

Hole.io, which was released in mid-2018, uses the same core gameplay mechanic as Donut County.

Ben Esposito had been working on Donut County for over five years when Hole.io was released.

Voodoo has defended their approach, stating that there is a limited amount of preeminent gameplays, but an infinite amount of interpretations and execution.

Voodoo's marketing success lies in its ability to combine rapid game testing with data-driven user acquisition. This approach allows them to scale hits while dropping underperformers early.

The company tests hundreds of game prototypes each year, only moving forward with those that meet strict retention and cost-per-install benchmarks. This fast iteration cycle enables them to quickly identify and capitalize on successful games.

Voodoo invests heavily in user acquisition across major ad networks, using eye-catching creatives to attract users cheaply. This approach is particularly effective for hybrid-casual titles, which benefit from live operations and deeper progression to increase lifetime value.

The company's cross-promotion strategy is also a key factor in its success, with billions of lifetime downloads providing a massive advertising reach. This allows new titles to get a boost from day one, as they can be advertised directly inside Voodoo's existing portfolio.

By applying its marketing expertise to social apps, Voodoo is opening up new long-term growth opportunities. This is evident in its acquisitions like BeReal and Wizz, which can be monetized through both ads and subscriptions.

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Voodoo has published hundreds of mobile games, but only a select few have truly defined its brand and driven its massive download numbers.

The company's games were downloaded 2 billion times by April 2019, 3.7 billion downloads by May 2020, and 5 billion by May 2021, making Voodoo the leading mobile games publisher.

Voodoo's most successful game by number of downloads is Helix Jump, developed by H8games, which was the most-downloaded game of 2018 with 334 million installs and had more than 500 million downloads by August 2020.

Some of Voodoo's notable games include Helix Jump, Baseball Boy, Snake vs Block, Hole.io, and Paper.io 2, which have been downloaded hundreds of millions of times.

Voodoo has also launched initiatives beyond the hypercasual segment, including opening studios in Berlin and Montreal focused on going beyond the hypercasual genre, hiring experienced people from other studios, and acquiring Gumbug - a London-based mobile game studio behind Smash Supreme.

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Almost anyone can develop and publish a successful hypercasual game, thanks to the availability of third-party tools that make it easy to create, test, and scale a mobile game.

These tools are efficient and have made it possible for new developers and publishers to enter the hypercasual segment, even if they can't match the revenue of leading players like Voodoo.

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An influx of new developers and publishers has entered the market with differentiated hacks to take market shares from leading players, some by copying ideas from competitors, while others have in-house developing teams based in countries with lower wages.

Voodoo's chief executive Alexandre Yazdi believes that the company's experience in more complex games can be leveraged to create fresh casual products that incorporate hyper-casual innovations.

Voodoo, a leading mobile games publisher, has been making waves in the gaming industry with its hyper-casual games. By 2021, Voodoo's games had been downloaded 5 billion times, with 2.6 billion downloads in December 2019 alone.

The company has been focusing on developing games that are easy to play and require minimal effort, making them perfect for short gaming sessions. Voodoo's most successful game, Helix Jump, was the most-downloaded game of 2018 with 334 million installs.

However, Voodoo is now looking to expand its horizons beyond the hyper-casual segment. In 2021, the company launched Mob Control, a hyper-casual game that later shifted to a hybrid-casual genre. This move indicates that Voodoo is willing to experiment with new game genres and mechanics.

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Voodoo has also opened studios in Berlin and Montreal, which will focus on developing games beyond the hyper-casual genre. The company has hired experienced developers from other studios, such as Rovio, King, and Blizzard, to help with this expansion.

Here are some ideas that Voodoo could pursue to go beyond the hyper-casual segment:

By exploring these ideas, Voodoo can create new and engaging games that appeal to a wider audience. The company's willingness to experiment and innovate is a promising sign for the future of mobile gaming.

Voodoo is a private company, still run by its two founders, Alexandre Yazdi and Laurent Ritter, who have a big say in the company's direction.

Several major investors have bought smaller stakes in Voodoo, including Goldman Sachs, Tencent, and Groupe Bruxelles Lambert (GBL). In 2018, Goldman Sachs invested about $200 million to help Voodoo grow faster.

Tencent, the Chinese tech giant, bought a minority stake in 2020, valuing the company at about $1.4 billion. This move supported Voodoo's expansion into the Asia-Pacific market.

GBL, a European investment group, bought about 16% of Voodoo in 2021 for €266 million, putting the company's value at around €1.7 billion (about $2 billion at the time).

Here's a summary of the major investors and their stakes in Voodoo:

Voodoo has also made some big moves of its own, including buying Beach Bum, a studio known for card and board games, in 2021, and buying the social app BeReal for €500 million in 2024.

Voodoo is shifting its focus to hybrid-casual games and consumer app expansion. The company aims to release fewer games each year, but with deeper mechanics and higher monetization potential.

Publicly, Voodoo has set a target for hybrid-casual titles to reach $100 million in lifetime revenue each. This would put them on par with top-tier mobile hits.

The acquisition of BeReal for €500 million is a key part of this strategy, expanding Voodoo's reach beyond games into social media. BeReal's unique photo-sharing format is already operating at break-even, suggesting monetization improvements are in motion.

Voodoo's experience in user acquisition, retention campaigns, and monetization is being applied to its social app Wizz, giving the company another foothold in non-gaming consumer engagement.

By 2019, Voodoo had already grown to employ 220 people, including 150 at its Paris headquarters.

In August 2019, Voodoo announced a publishing office in Istanbul, Turkey, headed by publishing director Corentin Selz.

A Montreal development studio was opened in November 2019, led by Mehdi El Moussali, a former producer for Gameloft.

This marked a significant expansion for Voodoo, as they intended to move beyond hyper-casual games.

By July 2020, Tencent was looking to acquire a minority stake in Voodoo, which was still majority-owned by Yazdi and Ritter.

Tencent acquired a minority stake in August 2020, valuing Voodoo at $1.4 billion.

Voodoo's revenues skyrocketed in 2020, reaching €380 million, up from €1 million in 2016.

The company opened offices in Singapore and Japan in August 2020, headed by Julian Corbett and Ben Fox, respectively.

In September 2020, Voodoo announced an investment in Istanbul-based developer Fabrika Games.

Voodoo acquired Parisian developer OHM Games in December 2020, which had developed four games for the company in 2020, generating 260 million downloads.

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Voodoo bought BidShake, a Tel Aviv company developing a marketing automation platform, in June 2021.

Groupe Bruxelles Lambert acquired a 16% stake in Voodoo for €266 million in August 2021, valuing Voodoo at €1.7 billion.

The company transitioned from hyper-casual games to what it calls "hybrid casual" games during that year.

Voodoo acquired Beach Bum in September 2021 for a reported price of $250–300 million.

In 2023, Voodoo reported $570 million in revenue, mostly from in-app purchases.

Hypercasual games accounted for only 25% of this revenue, while hybrid casual games like Mob Control and Block Jam grossed nearly $100 million each.

Voodoo is shifting its focus to hybrid-casual games with deeper mechanics and higher monetization potential.

The company plans to release fewer games each year, but with stronger retention and higher revenue potential. This is a deliberate strategy to prioritize quality over quantity.

Voodoo has set a target for its hybrid-casual titles to reach $100 million in lifetime revenue each. This is a bold goal that could put them on par with top-tier mobile hits.

The acquisition of BeReal in 2024 for €500 million is a significant move in this direction. BeReal's unique photo-sharing format expands Voodoo's reach beyond games into social media.

BeReal is now operating at break-even, suggesting that Voodoo is making progress with monetization improvements. These improvements are likely through ads and premium features.

Voodoo's experience in user acquisition, retention campaigns, and monetization will be applied to its social app Wizz as well. This gives the company another foothold in non-gaming consumer engagement.

Partnerships with investors like Tencent open stronger distribution channels in Asia-Pacific for Voodoo.

Voodoo's leadership in the hyper-casual segment has been challenged by new entrants in the past 18 months.

GoodJob Games and SayGames are among the new entrants, coming from countries with lower developer costs and a strong gaming culture.

Lion Studios, a subsidiary of AppLovin', is also a new player in the market, leveraging its expertise in user acquisition and revenue optimization.

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The hyper-casual segment market growth is slowing down, with Voodoo's sales growing by only 10% in 2019.

The quarterly market year-over-year growth rate is now below 50%.

Here are the main reasons for the lower market growth and Voodoo's market leadership contestation:

Voodoo's strategic focus shifted towards 'hyper-casual games', a move that likely involved adjusting their business model to prioritize metrics like retention and playtime.

Their emphasis on experimentation and strategic adjustments was a deliberate choice, suggesting a willingness to adapt and learn from their experiences.

This approach is likely to involve continuous evaluation and improvement, as the company seeks to optimize their games for maximum player engagement.

By prioritizing retention and playtime, Voodoo is likely targeting a specific type of player who values convenience and simplicity in their gaming experience.

This focus on 'hyper-casual games' suggests that Voodoo is targeting a wider audience, potentially including players who may not be as invested in more complex or story-driven games.