- Unconventional Empires
- Posts
- A Mini-Game Empire 🕹️
2 minute wacky businesses, you can tell your buddies about 🧠
Let me introduce Hypixel, a name that might not ring a bell unless you're knee-deep in Minecraft. This isn’t just a game, it’s a masterclass in seizing early mover advantage and turning it into cash. Hypixel is pulling in north of $14 million a year, making it one of the most lucrative indie gaming ventures ever. Even if you’re not interested in gaming, this is a super interesting story.👇
Source: Google Trends
Mini-games and content-as-a-service 🧐
Founded in 2013 by Simon Collins-Laflamme and Philippe Touchette, Hypixel started as a simple Minecraft server. But while other servers were content with just being a place to play, Hypixel had bigger ambitions. They wanted to be the place to play.
Minecraft was blowing up, but it was still a bit of a Wild West. No major server had yet established itself as the go-to place for multiplayer action. Simon and Philippe spotted this gap and jumped in, offering custom game modes and unique experiences that weren’t available anywhere else. They became the first to truly innovate within the Minecraft ecosystem, capturing a massive audience before anyone else even realised there was an opportunity.
What are the nuggets? 💎
🕹️ Origin: Hypixel started as a side project between two friends, Simon Collins-Laflamme and Philippe Touchette. The two originally created Minecraft adventure maps together and uploaded videos to YouTube. The Hypixel server was made to showcase these maps. Initially, minigames were created for players to enjoy while waiting, but they became popular on their own. Hypixel then focused on developing new server content instead of additional maps.
🕹️ Monetisation: Hypixel pioneered the "freemium" model within Minecraft, where players could join for free but paid for extras like cosmetics, in-game perks, and access to exclusive content. Players can also buy ranks to gain access to extra content, which were originally introduced when server costs started to spiral out of control.
🕹️ Pivotal Moment: Hypixel effectively turned content creation into a service. By regularly releasing new game modes and updates, they kept the experience fresh, preventing player burnout. This model of "Content as a Service" also ensured gaming streamers had a constant supply of fresh content that remained in the Minecraft category.
🕹️ Funding: Unlike typical startups that burn through investor cash, Hypixel was largely self-funded from the revenue they generated early on. They didn’t take on external funding until 2018, and even then, it was just $7 million, pocket change compared to their revenue. It’s reported that Hypixel costs $100,000 a month across salaries, hardware, bandwidth, and DDoS protection to run.
🕹️ Big Moves: Hypixel made a bold move by expanding into the Chinese market in 2017, partnering with NetEase to launch a localised version of their server. This wasn’t just a copy-paste job, they had to navigate strict government regulations, implement region-specific content, and adapt to the unique demands of Chinese gamers. This strategic expansion opened the doors to millions of new players, significantly boosting their global player base and revenue.
Reply