Press ‘start-up’ to continue: The evolution of Codigames in the mobile gaming industry

Codigames, founded in 2013 by cousins Francisco (Fran) Martínez and Zacarias Gómez in Murcia, Spain, emerged from Fran’s childhood passion for programming video games. What began as a hobby generating $500 monthly from browser games evolved into an ambitious venture in mobile gaming, driven by Fran’s vision to become “the next Ubisoft of Spain” and the cousins’ recognition of smartphones as an emerging gaming platform. This teaching case presents Fran at a pivotal moment in his entrepreneurship journey. After burning through most of their seed funding, sales fell drastically below expectations and the company’s operational cash flow turned negative. Fran was now forced to consider whether to persist with their current mid-core strategy or attempt a strategic pivot. His decision would need to balance multiple stakeholder interests while addressing immediate cash flow challenges, all while preserving the entrepreneurial vision that had brought them to their current situation.