Strategic Financial Management in Mobile Gaming Companies : Optimizing Time-to-Kill for Underperforming Games

Abstract

This study investigates strategic financial management within the mobile gaming industry, emphasizing the evaluation of game performance, financial risk management, and resource allocation in highly competitive and volatile conditions. Using Company X as a case study, the analysis focuses on Time-to-Kill (TTK), the speed at which underperforming game projects are discontinued, and examines its role as a financial control mechanism. The research explores how early key performance indicators (KPIs), development costs, and user acquisition metrics inform termination decisions and influence long-term financial outcomes, addressing the limitations of traditional financial models in capturing the industry’s rapid product cycles and uncertainty. Employing a mixed-methods approach, the study integrates semi-structured interviews, financial modelling, scenario simulations, and sensitivity analysis, with data drawn from Company X, Finnish industry professionals, industry reports, and scholarly literature. Quantitative analysis estimates the financial impact of different TTK durations, while qualitative analysis identifies organizational and behavioural drivers influencing project discontinuation. Findings indicate that development labour is the primary component of monthly costs, and that early KPIs, such as day-one and day-seven retention, cost per install, and projected lifetime value, are strong predictors of long-term success. Reducing TTK results in substantial financial savings and increases the capacity for prototype testing, thereby enhancing portfolio performance and innovation speed. The study demonstrates that TTK functions as both a financial control mechanism and a strategic tool for portfolio optimization. These insights advance understanding of financial management in mobile gaming and provide actionable recommendations for improving decision-making processes, optimizing resource allocation, and achieving sustainable profitability.