PLAYSTUDIOS, a company known for social casino games, might be sitting on a goldmine – and it's not slots. Their recent Q1 2024 earnings call transcript reveals a potential bombshell: the explosive growth of their Tetris franchise. While analysts focus on their casino games, a seismic shift is happening under their noses.

Tetris, the iconic puzzle game, is experiencing a resurgence on mobile, and PLAYSTUDIOS is perfectly positioned to capitalize. They hold the exclusive mobile license for Tetris, recently renewed for a potential eight more years. This means they have the sole right to develop and publish Tetris games on mobile devices, a market worth billions.

The numbers speak for themselves. PLAYSTUDIOS' Q1 earnings call revealed that Tetris was the "standout" performer, with revenue and daily active users (DAU) significantly exceeding year-ago figures. This surge was fueled by the recent viral sensation of 13-year-old Tetris prodigy, Willis Gibson, the first to "beat" the game. The resulting media frenzy pushed Tetris back into the spotlight, driving a wave of new players to mobile versions.

PLAYSTUDIOS reported a staggering 22 million organic installs for Tetris Prime in a single year. This highlights the power of the Tetris brand, generating massive user acquisition even in a challenging mobile marketing environment. Imagine the potential with targeted marketing campaigns on top of this organic growth.

But PLAYSTUDIOS isn't stopping there. Two new casual Tetris titles are in development, with one launching in Q3 2024. These games target a broader, more casual audience, potentially expanding the player base even further. PLAYSTUDIOS aims to build a "premier mobile gaming brand" around Tetris, a vision that seems increasingly attainable.

Tetris: A Potential Revenue Juggernaut?

While PLAYSTUDIOS hasn't disclosed specific Tetris revenue figures, the earnings call hints at high growth. Terms like "well ahead," "standout," and "meaningful pickup" suggest it's outperforming their other games.

Consider this: King, the company behind Candy Crush, generated over $2.7 billion in revenue in 2022, largely from their popular puzzle games. Tetris, a more universally recognized brand, has even greater potential. If PLAYSTUDIOS executes their strategy, leveraging the Tetris brand and their unique loyalty program, they could be building a billion-dollar franchise.

"Hypothetical Tetris Revenue Growth"

Assuming Tetris Prime made $10 million in 2023, doubling in 2024 would bring it to $20 million.

With a new casual title in Q3, a 50% increase in the second half of 2024 could bring total Tetris franchise revenue to $30 million.

Organic Installs of PLAYSTUDIOS Games (Hypothetical)

So, while the investment community is fixated on social casino games, PLAYSTUDIOS is quietly building a mobile gaming empire around Tetris. This could reshape the company's future, propelling them into the mobile gaming elite. Could Tetris be the key to unlocking PLAYSTUDIOS' true potential? Keep your eyes on the falling blocks; this story is just getting started.

"Fun Fact:"

The name "Tetris" comes from the Greek word "tetra," meaning "four," referring to the four blocks that make up each Tetris piece.