At the end of 2016, a start-up called Hatch emerged from Rovio as a separate company. It develops Netflix gaming for mobile devices. Vesa Jutila, its co-founder, talked about what exactly the service would be like.
Announcement of Hatch at the end of last year was a big surprise. Can you tell us in detail what service you are doing?
Vesa Yutila, co-founder Hatch: Hatch is a mobile platform within which you can play, and also share games and videos from them. It’s something like Netflix with a collection of “on demand” games, but it’s also a place where you can share the best gaming moments or play online with your friends.
What prompted you to create it?
Before the advent of video games, there were just games that almost always were inherently social – something you did to other people. We wanted to create a space on mobile that would restore sociality to games for real.
Hatch was originally created in the walls of Rovio. But then the service decided to withdraw to a separate company. Why?
Once the Hatch technology was created and its business model became understandable, we also realized that it should be a separate company from Rovio, which should have a different profile asset. Also, since Hatch works with dozens of different studios and publishers, helping them to transfer games to the platform, it is important that Hatch is an independent company.
We are proud of our relations with Rovio. But now this company is one of several dozen equal partners for us.
The appearance of the platform lies in the modern trend of building ecosystems over existing application stores and operating systems. Do you agree? What do you think, with what, in general, is this trend connected and what can it lead to?
In general, yes, many private companies are trying to create not just a new business, but completely new value chains (value chains) and ecosystems. This is logical. But in our case, we consider application stores as their most important partners, and also as their distribution channels.
Together with the development of our ecosystem, we are interested in being an example of an excellent user solution for the next generation of cloud infrastructures.
Previously, more than once on the gaming market, attempts were made to create cloud platforms for the distribution of games. For example, everyone still remember OnLive and Gaikai. What prevented them from succeeding and why are you shooting?
I think these were great ideas that have overtaken their time. Technologies today received the necessary opportunities for their implementation.
As for us, the business model of the subscription service, which allows to play games “on demand,” is still relevant.
Do not you find the App Store and Google Play that you take on their role as a distributor. How will they react to it?
I can not speak for them.
I believe that we are the same competitors shopping apps like Netflix rival iTunes.
Both leading stories report an increase in revenue from subscription services. This is a trend in the economy of subscriptions.
How will the work within the ecosystem be built?
From the perspective of the end user, the Hatch application can be downloaded from the application stores. In the application itself, the user will scroll through the updated in real time tape from the posts of friends and choose from a dozen games presented to the platform by more than 60 studios and publishers.
What projects do you plan to publish on the platform?
We have already signed contracts for the publication of 150 games. Earlier we reported on the appearance of Monument Valley, Pac-Man, Leo’s Fortune, Rayman Fiesta Run and Broken Age – high-quality, high-grade premium games without microtransactions and IAP.
What will the developer get from cooperation with you, why should he get to one more site?
Since we create a collection of games on Hatch, the reaction from the community of developers was very positive. We offer premium games a new way of monetization, another source of income, a way to reach a new audience that otherwise would not have paid for the project.
You announced that you plan to make money on advertising. How will this advertisement look, will it not create a negative experience from interaction with games?
We natively implemented advertising and brand-storying [the type of integrated brand promotion through stories about the brand and the values of the company; The task of the story emotionally hook the consumer, – ed. Ed.] Into the gameplay and adjust it to the users, so that advertising is relevant to us.
Plus, advertising does not arise directly during the gaming session. You see advertising when you thumb through the collection and the tapes of friends, and also when you choose a game.
The first time, while the products on the platform will be small, there will be no problems with finding, but with the growth of the library – it will definitely arise. How do you plan to solve it?
We do not compete with application stores, in which millions of games are available. Hatch is a content service that offers a compact and supervised game collection, as well as additional social functionality that is nowhere else available. This is done so that the players can get excellent experience, and that our partners can earn.
We do not want to get a long tail of projects that no one plays and that are hard to find.
One of the important features of Hatch is the possibility of sharing a video game. How does this tool work?
It’s all very simple. Hatch constantly removes the last 30 seconds of gameplay. Therefore, at any time you can put the game on pause, go to the video editor, select the desired area within 30 seconds, add text or effects. When you’re done with the creation of your small film, you can post it to the Hatch tape or another social network, where the excerpt can comment, lark and rassharivat your friends.
Will streamers make money on Hatch?
Gameplay moments shared on Hatch, compared to YouTube … It’s like Twitter compared to LiveJournal – a small, bit-format. What our users are going to do with it depends on them.
Will there be an opportunity for developers to somehow promote the game within the framework of Hatch?
The collection of games in Hatch is compact enough. Every game in it is easy to find. Users will see content similar to the games they played themselves and played by friends. They will also be able to choose genres, watch what games are now in the trend and so on.
When will the release take place?
Now the platform is closed, accessible only by invitation, beta. Given the current figures, it seems reasonable to expect a commercial release in the second half of this year.