Snapchat’s parent company, Snap, is starting a gaming platform next month. It is designed for developers, according to Cheddar.
The gaming platform has a codename Project Cognac. It will include several games from outside developers to work in the Snapchat app.
The new gaming platform will be revealed during the first Snap summit for content and developer partners in LA on April 4. The event will also give Snap an opportunity to announce its video initiatives.
For almost a year, there has been a report that the company is expanding its niche into a gaming platform. In 2018, Fortune published that Snap was planning to develop a MM app and games by fall to better user engagement.
This year, the company invested in Prettygreat, an Australian game studio. The studio was founded by the leaders in the Australian games industry, such as Phil Larsen, Luke Muscat, and Hugh Walters. Muscat created crucial mobile games, like Jetpack Joyride and Fruit Ninja. The deal between Snap and Prettygreat would make a new path for the former.
In recent years, Snap endured poor earning results. Many are challenging its long-term user growth. Furthermore, its Spectacles, a pair of glasses that record video and take photos, failed to catch a wider audience.
It may be an indication of a new strategy for Snap. However, Snap is not a stranger to the gaming platform. Two years ago, Tencent, a Chinese tech giant, bought a 12 percent stake in Snap.
Last year, Snap purchased PlayCanvas, a web-based 3D game engine. Then, it also introduced Snappables. It is a suite of AR games that utilize touch controls and motion control, as well as facial expressions.
Even though Snap strived to boost its users, its revenue grew. It also saw a growth of 5% in last year’s third quarter. Its shift to gaming could somehow bolster its users and revenue.
Snap can use games as its new source of revenue. It can implement in-app purchases or employ ads. With its most recent earnings, its stock rose in recent days. Furthermore, it is slowly launching the all-new redesign of its Android app that might help in reviving its growth.
Snap’s Snapchat app is popular among teens. It is known for its ephemeral messages with funky filters. It went public in March 2017. But it struggled to grow since then. One of the reasons is that Instagram, a Facebook-owned photo-sharing app, mimicked its most popular features.
Apart from its daily audience shrinking, its daily users in North America, which is its most valuable Market, is also diminishing.
In addition to Instagram copying Snapchat’s novel features, the app also suffers because of its recent redesign. Unfortunately, the new redesign was not that popular with users. The new design’s goal was to separate the personal messages of users from the stuff they view from brands and celebrities. But it did not go well.
With its new gaming platform, it might pick up. The new platform might help boost user growth and revenue.