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Panic's Playdate: The $200M Gamble on a Handheld Nobody Asked For
How a 46-person software shop pivoted from $7M revenue apps to a crank-powered gaming experiment
Panic built a $7.4M business selling developer tools like Transmit and Coda—then bet everything on a yellow handheld with a crank. This is the story of what happens when a profitable software company decides to make hardware.
"Panic isn't chasing unicorn valuations—they're building the kind of company they'd want to work at, crank handle and all."
The Developer Tool Diaspora
Panic's traffic tells a story of legacy and loyalty. With 'transmit' (13,840 monthly searches) and 'coda' (168,330 searches) still driving traffic, their developer audience remains strong. But here's the telling detail: 'panic video games' gets just 220 monthly searches. Their gaming pivot is still a whisper in the noise of their software past.
The Hardware Hail Mary
From 0 to $200+ in revenue from a device nobody asked for. Playdate's crank isn't just a gimmick—it's a statement. While their software tools generate steady traffic, the handheld represents a radical reinvention. With 46 employees and no external funding, this is a bet-the-company move that venture-backed startups would never dare attempt.
The Trustpilot rating of 2.7/5 from just 5 reviews reveals a company that's either too niche to attract mainstream criticism or so beloved that customers don't bother complaining. For a hardware launch of this magnitude, the silence is deafening.
- Profitable software business with $7.4M revenue and no VC funding
- 47% organic traffic suggests strong brand recognition among developers
- Hardware pivot is either brilliant diversification or catastrophic distraction
- 46-person team attempting what requires 460 engineers
The Real Test Isn't the Crank—It's the Company
Panic's true innovation isn't hardware—it's building a sustainable, profitable business that doesn't need to exit to matter. In a world of burned-out startups, they're playing a different game entirely.
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Panic - We code apps, publish games, and make Playdate.
Panic codes top-quality apps for developers, publishes games for people who like fun, and, now, we make the Playdate handheld gaming system.
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Reviews (5)
My chief software engineer loved the…
My chief software engineer loved the colors in the old Coda 2 theme. Nova now has a similar theme, but with awful colors. Is it possible to return a theme from Coda 2 to Nova? He's getting a psychological breakdown due to the color scheme in the new theme in Nova. Is it possible to bring back his favorite theme from Coda 2 to his Nova app on Mac? In the photo I'm attaching an old theme that we would like to return. The theme in Coda 2 was called "Birds of paradise". Please help.
Really love the software
Really love the software, the support was great and helpful. Also loving the style.
Goodbye Dreamweaver. Hello Coda 2!
I just switched to Coda 2 from Dreamweaver. Adobe wouldn't let me transfer my CS5 license from Windows to Mac, and I didn't want to sign up for outrageous monthly CC payments for life. In my search for a Dreamweaver replacement I found Coda 2, a website IDE. They have a 7 day trial so you can test drive Coda before you buy. I used Coda to make backend updates on a couple of Wordpress sites, and it worked like a charm. The UI is very clean, and easy to learn. I actually like it better than Dreamweaver! The best part is Coda only costs $99 period. No subscription required!
Software good but invoice fails
Software works well, but they are unable to provide a correct tax invoice with their EU VAT ID. Support does not answer my requests any more.
If you're wondering why apps like…
If you're wondering why apps like Prompt2 have been crashing without any updates the last year and Transmit is sunset and abandoned.. Surprise! They're working on new paid upgraded apps to replace it while the old apps crash and burn in unusable state. Essentially 1 year early secret deprecation of their software. They already made the decision to stop support since the last update a year ago. Current state: Prompt2 is crashing, its worthless - most of us paid over 30-35 usd for it. Its probably been crashing for at least a year now as I've been wondering.. Its useless as it can't be relied on cuz its prone to crashing, compared to even free clients this is bad. Only response I got was you can join the Prompt3 beta. They're just preparing another huge money heist of their old users or whoever is dumb enough to fall for the trap. They knew all this time 1 year ago, which is when you should have told your users; Sorry we need more money we're transitioning to a subscription app so you don't have to deal with this otherwise extremely unfortunate release cycle and our upfront greedy personality. Well thanks for nothing except a huge paywall and feeling like you just smeared us all! It sounds oddly familiar like a faint memory of a shitstorm I read on your page with customers who were also angry about the Prompt1to2 situation. If you really want to make subscription apps then make subscription apps instead of this. No I won't buy the silly upgrade, I'll probably find a better alternative like Secure Shellfish who doesn't use their customers like this. Top 1 expensive app in your portfolio asks for more money WHAT A SURPRISE. Not like you're honest or anything no you're plain secretive and eluding about it.. You could have done a transaction with customers on subscription or any other deal where people would be obviously happy or at least accepting to the terms.. In this case you just chose to exploit us, like you also did previously, shame on you.. You never learn. Seems too easy to slap a new skin on the old client and sell another upgrade, unlimited money and with limited manpower so you can focus on the silly PlayDate (looks like something I'll never buy), have fun with that.. Enjoy the new office, I will happily pay 30 usd -- solely to get rid of you and cross off your checkmark -- seems cheap to never have to see or deal with you ever again!
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About panic.com
Panic codes top-quality apps for developers, publishes games for people who like fun, and, now, we make the Playdate handheld gaming system.
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panic.com uses 5 technologies across their website including HSTS, Plausible, Twitter Cards, RSS, and more.
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Bootstrap
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panic.com receives approximately 118.8K monthly visitors and ranks #364,342 globally. The website has a bounce rate of 43% with visitors viewing an average of 1.6 pages per visit. Users spend an average of 0:18 on the site.
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