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Transforming Data Analysis in Gaming Industry

The operational costs associated with mobile games have skyrocketed in the past decade, expanding by about 6.7 times, leading to a crucial question for industry players: How do we move away from outdated manual data analysis methods? During the 'ThinkingData Salon' event, held to address this critical transition, key players in the gaming industry convened to discuss the evolution of data management and the necessity of establishing a standard for data analysis.

Rising Costs and the Need for Change

The monthly operational cost for mobile games has ballooned to around 44 million yen, which underscores the importance of sound, data-driven decision-making in safeguarding business continuity. Leading data strategist, Ryo Matsuura from Bandai Namco Nexus, asserted that relying solely on skilled engineers or analysts to interpret data through traditional SQL methods is not sustainable. The event aimed to foster dialogue on the need for standardized processes that streamline the conversion of raw logs into actionable insights.

The Current State of Data Analysis and AI Utilization

In the first segment of the event, Ryo Matsuura and data analyst, Shirai from ThinkingData, engaged in discussions about the current state of data analysis and the emergent role of AI in gaming operations. Their conversation centered around transforming large volumes of collected data into actionable insights, stressing the crucial evolution from mere data collection to effective decision-making.

Key Discussion Points:

1. Transforming Logs into Business Intelligence: The existing time lag in turning logs into decision-making materials incurs unnecessary costs. Matsuura pointed out the inefficiencies caused by outdated reliance on ad-hoc engineering solutions instead of standard processes that can expedite data use.
2. From Enthusiasm to Retention: Despite a shrinking market, the Average Revenue Per User (ARPU) has hit record highs. The discussion emphasized identifying signs of user disengagement early using precise data-driven approaches rather than solely relying on past experiences.
3. From Personal Insights to Organizational Asset: The participants addressed a prevalent issue where meetings often devolve into arguments over numerical definitions rather than actionable insights. Creating agile environments is essential for empowering planners to test hypotheses and implement strategies.

Interactive Workshop: Breaking Down Data Analysis Barriers

The highlight of the event was an interactive workshop aimed at addressing the typical challenges faced in daily data analysis. Participants engaged in group activities, simulating real-world scenarios involving data analysis obstacles encountered in game development and management.

During this workshop, tables were provided with three types of cards representing different aspects of data analysis challenges:

• - White Cards (Subjects): Young data analysts, creators prioritizing intuition over data, producers with decision-making authority.
• - Green Cards (Business Issues): Warning signs of user churn, metrics like Lifetime Value (LTV), and unexpected drops in retention rates.
• - Blue Cards (Situations): Scenarios where analytical results confirm expected outcomes without prompting further action or where too many Key Performance Indicators (KPIs) lead to confusion.

Participants thrived in crafting vivid scenarios that illuminated real-world challenges, showcasing the pressing need for better data utilization.

Networking and Future Prospects

Following the workshop, attendees enjoyed a casual networking event where discussions continued in a relaxed atmosphere. This gathering fostered valuable conversations surrounding the future of the gaming industry and innovative data applications.

The primary takeaway from the event was the shared awareness of substantial real-world business challenges among attendees. The insights gathered will contribute to crafting practical solutions, addressing not just the technical aspects of data tools but also the fundamental organizational hurdles.

Moving forward, ThinkingData plans to compile the challenges presented during the event along with corresponding solutions and publish them as 'Game Industry Data Analysis Challenges & Solutions.' This document will become an essential read for those involved in game operations, providing valuable standards to aspire towards in improving industry-wide data literacy.

In closing, ThinkingData continues to spearhead initiatives aimed at enhancing the gaming industry's data capabilities, illuminating areas that tools alone cannot address. Follow their official site and social media for updates on new events and publications.

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