Restructuring Mobile Game Giant Supercell for a Turnaround
Notas do episódio
Founded in 2010, Supercell was a Finland-based mobile gaming company that had developed and launched five global hit mobile games: Clash of Clans, Clash Royale, Hay Day, Brawl Stars, and Boom Beach. The company’s early philosophy was that it could produce hits by designing the company with a structure and culture that would prove compelling to the industry’s top talent. Developers worked in small, autonomous groups called cells with little oversight. The formula was a success. Supercell had nearly $2 billion in annual revenues, and Clash of Clans alone had generated gross revenues of over $10 billion since inception. However, the company had not released a hit game in five years.
In 2023, CEO Ilkka Paananen and the company’s leadership team decided to restructure the company into two divisions—New Games and Live Games. The New Game cells would retain the small team structures, which were largely flat and non-hierarchical, but the Live Game cells would add more traditional structure and hierarchy to exploit franchise hits. Now, Paananen wondered if Supercell could continue to attract top talent despite its shift to more traditional ways of managing the business.
Senior Lecturer Jeffrey Rayport and host Brian Kenny discuss the case, “Supercell 2.0: Clash of Plans,” and the question at its crux: What would it take to restore the company’s winning streak?