Mobile Gaming Forecast in the Hundreds of Billions
The industry has seen a lot of change recently, and the mobile gaming forecast is good. It’s no longer just about big screen TVs, expensive consoles, and crowded game stores. Mobile phones have changed the way people play video games. Mobile gaming has seen record growth year after year, with no signs of slowing down. This trend is fueled by the rise of smartphones and the emergence of new platforms like Facebook and Apple TV. If there was an industry that didn’t take a dive due to the global health crises of the last 18+ months, it’s the mobile gaming industry. According to market research, mobile gaming was worth just shy of $100 billion in 2020 and is predicted to climb to $272 billion by the time 2030 rolls around. So, what are the supporting trends that are driving such tremendous growth?
Well, technology of course
Many traditional PC and console game makers like Electronic Arts and Activision, who also form part of the elite top gaming companies on FTSE and SP market indexes, have in recent years placed a greater focus on mobile gaming, realising the incredible revenue to be had. However, outside of truly formidable gaming companies such as Tencent or Perfect World, the other driving force behind the mobile gaming industry resides in technology, 5G to be more precise. 5G networks facilitate download speeds far surpassing those of the current 4G networks. This in turn is aiding the progress and development of augmented reality (AR) games and mobile-based cloud gaming services. To say that 5G trumps 4G would be an understatement; put into perspective, 5G has the capacity to support one million devices within the space of a single square kilometre. With such capabilities, 5G is going to entice more users in the direction of mobile gaming, especially multiplayer titles, and this will heavily impact upon the growth of mobile esports.
Simplified models that reduce costs
Another trend driving the proliferation of mobile gaming for both Android and iPhones is simplified operating models, which means that the game development process becomes more efficient and with that comes money-saving benefits. In pursuing a streamlined approach, mobile game developers do more with less resources. This in turn enables them to cater to a growing base of mobile game consumers leading to greater profits and improved business development.
In-game ads & in-app purchases
Yet another trend driving revenue in the mobile gaming industry is gaming monetisation by way of in-game ads. There’s a fair amount of data backing this up too. According to market research, 74% of US mobile gamers a prepared to watch an in-game ad if they received an in-app perk afterwards. In addition, the data reveals that roughly 80% of players preferred free mobile games with ads. In-game ads are helping mobile developers to accrue better profits. They also help advertisers find new ways of reaching their audiences. Thus creating a symbiotic relationship between developers and advertisers. In app-purchases have also played a massive role in helping game developers generate more revenue. With in-app purchases, gamers can upgrade their avatars for instance, and even gain a competitive edge over fellow gamers. In fact, the spread of in app purchases has coined the phrase, pay to win. At the end of the day, it’s all driving profits, and in turn better gaming development also.