'We've Been a Little Bit Too Romantic:' Ustwo CEO Says Lowering Development Costs Is Now Paramount

Why It Matters

Ustwo’s restructuring aims to lower costs and create a sustainable financial model, setting a potential blueprint for mid‑size developers transitioning away from volatile mobile markets.

Key Takeaways

• Ustwo aims to cut game budgets from £7‑£10 million to lower levels
• Core team stays under 30 staff; growth will rely on contractors
• Shift to PC/console focus after mobile platform decline
• Pricing strategy will increase launch prices to improve Steam visibility
• Recent ports moved hundreds of thousands of units, but modest revenue

Pulse Analysis

The mobile gaming market that once powered rapid growth for indie studios is losing its luster, prompting developers to reassess where they can build lasting businesses. Ustwo Games, best known for the critically acclaimed Monument Valley series, announced at London Games Fest that it will abandon its mobile‑first strategy and concentrate on PC and console releases. The decision follows a strategic review triggered by Netflix’s decision to drop Monument Valley 3, leaving the studio without a streaming partner and exposing the fragility of mobile‑centric revenue streams. The move underscores a growing belief that PC and console ecosystems offer more predictable revenue streams.

Ustwo’s current development costs hover between £7 million and £10 million (approximately $9 million‑$13 million) over three‑to‑four‑year cycles, a scale that threatens profitability on platforms with lower price points. To curb spending, CEO Maria Sayans plans to shrink the permanent staff to under 30 employees and fill the gap with contractors and co‑development partners, a model that offers flexibility and reduces long‑term payroll obligations such as pensions. This leaner structure mirrors a broader industry trend where studios prioritize variable labor costs to adapt quickly to market fluctuations.

Pricing will also be revisited; Ustwo intends to launch titles at higher price tiers, betting that early adopters will absorb a $5‑$10 increase while later discounts preserve sales momentum. On Steam, algorithmic visibility heavily favors games with stronger launch revenue, so a modest price bump can improve placement on storefronts and recommendation feeds. By aligning cost structures, contractor staffing, and pricing, Ustwo hopes to achieve a sustainable break‑even point, setting a possible blueprint for other mid‑size developers navigating the post‑mobile era.