With the initial public offering of videogame maker King Digital Entertainment PLC set to price late Tuesday, the central question facing investors is whether the company can pull off another blockbuster like “Candy Crush Saga.”
“The standard term that people use to describe this kind of [business] is hit-driven,” said Rett Wallace, chief executive of private-company research and data provider Triton Research LLC.
“For all of the claims that Zynga made—and King makes the claim too—that they have a scalable, repeatable process, it just turns out that the alchemy of figuring out a thing that billions of people are going to use all the time is really hard,” Mr. Wallace said.
