KotaGames portal to shut down, TheMobileGamer’s future unclear

TheMobileGamer‘s KotaGames service for browser-based games played on mobile browsers is apparently shutting down, reveal developers today whose games were featured in the service. More importantly, the wording in the letter that appears to have been sent to developers, signed by TMG founder and CEO Alvin Yap, mentions that “the reason [for terminating the service agreement] is TMG will be winding-down and hence we will be terminating the KotaGames Project entirely.”

Quite what this means for the Singapore-based mobile gaming startup is unclear at the moment. Alvin Yap confirmed to Tech in Asia that KotaGames is indeed shutting down, but would not elaborate further on the status of TMG. The company is expected to put out an official statement soon.

TMG was founded by Yap in 2008, aiming to provide a platform for mobile games playable through a phone’s browser without the need for downloads or installs and with an emphasis on the social element. Through its KotaGames service and collaborations with social platforms such as Mig33 (now microblogging platform Migme) and telcos such as Indonesia’s XL Axiata it sought to attract mobile game developers and reach feature phone users in emerging markets such India and Southeast Asia.

The gaming startup managed to secure funding from such parties as Innosight Ventures and One97MobilityFund in 2010 and in 2012 Singaporean telco SingTel and Japanese telco SoftBank acquired a 41 percent stake in the company. However, in 2013 TMG met with controversy after it came to light that it had to let go 40 percent of its workforce. Alvin Yap said at the time:

TMG is a startup and we are always learning. We recently had to undergo a major reorganization to focus on key projects while reducing investment in some low-impact ones; this unfortunately meant that some staff had to be laid off. This decision was difficult but necessary for TMG to fulfill its full potential.

While the reasons for KotaGames’ shutdown are currently unclear, it is possible that the feature phone market could not support the platform’s business model. As stated in an interview with Tech in Asia in 2012, Yap hoped to monetize feature phone users in Indonesia who had no viable alternatives to gaming and content in general (such as smartphone gaming and mobile apps), but had access to feature phone services such as horoscopes via SMS, etc.

Considering smartphone penetration in Indonesia was the lowest in all of Southeast Asia in 2013 at about 14 percent, the theory at least seemed sound. However, that might not have been enough, as the world changed and hardware manufacturers such as Nokia, which Yap mentioned as a possible partner back then, got out of the game entirely.

As mobile gaming is increasingly becoming the domain of smartphones and tablets with native apps, TMG faces an uncertain future.