Mobile games: still ruling the video game market

For enthusiasts of the video games industry, popular titles such as Need For Speed, Super Mario, and Call of Duty are usually not comparable with lightweight mobile games. For example, the best-selling mobile game in the Google Play and iPhone stores may not be familiar to general users. Unlike the world's major game franchises, which have become famous because of cultural impact or marketing success, mobile games attract less attention even if they are profitable for their makers. But in August 2023 the statistical and news database Newzoo forecast that mobile games revenue in 2023 would reach 92.6 billion dollars worldwide, equivalent to 49 percent of total video games revenue. Interestingly, this forecast was three times the revenue of video games and nearly twice the revenue of console games. In fact, it can be said that mobile games have never been the driver of the video game industry, but they have been able to hold the largest share of its market.

 

Games; the most revenue-generating apps
Mobile games are not only more revenue-generating compared with other game platforms, but have also taken the market among mobile apps. The Adjust media report on the revenue-generating trend of mobile apps in 2024, conducted between January 2022 and January 2024, indicates that in-app revenue in mobile games has increased by 6%; this is while this year, the spending flow for players decreased by 2% and reached 107 billion dollars. According to this report, the games Candy Crush Saga, Honour of Kings, Roblox, Royal Match, and Coin Master have been the five top apps in terms of revenue generation.

The highest-earning games of 2023
According to data from the AppMagic website, the game Honor of Kings, with 1.58 billion dollars in revenue in 2023, was the most successful mobile game. After it come PUBG Mobile with 1.17 billion dollars and Genshin Impact with 960 million dollars. The third through fifth places are occupied by titles that are more familiar to Western audiences. Popular games such as Candy Crush and the multiplatform game Roblox, which have always been among the best.
In terms of the number of downloads globally, Subway Surfers ranked first and the games Free Fire, Roblox, Ludo King, and Candy Crush Saga were in the subsequent ranks, respectively. Of course, the number of installs and online sessions in mobile games have globally decreased by 2% and 7%, respectively. But in the final quarter of 2023, the number of installs increased by 7% relative to the previous year. The Latin America region, with 19%, had the largest increase in terms of the number of active installs, followed by Europe, West Asia, and Africa with 12%, North America with 6%, and finally East Asia and Oceania with 3% growth in the subsequent ranks.
Many of the best-selling mobile games have been made by Chinese developers; a country where mobile games are welcomed far more widely than PC or console games. The large company Tencent, which holds a major share of ownership of the WeChat app and popular games such as Honor of Kings and PUBG Mobile, earned about 25 billion dollars from its games in 2023 alone.
Why are mobile games more profitable than console or PC games?

• Advertising

Displaying short ads and generating revenue from them is a major strength that encourages investors in digital markets to participate in making mobile games. According to experts' forecasts, advertising spending on mobile games in 2024 will reach 103 billion dollars and in 2025 will reach 131 billion dollars. Looking more closely at these amounts and the profitability of the video games market, the hypothesis arises that recovering costs in the advertising segment will be accompanied by a good profit. Also in 2023, revenue from advertising in mobile games reached 32.5 billion dollars. This amount indicates significant growth in the in-app advertising market of mobile games, and this figure is expected to reach 46.06 billion dollars by 2027.

• In-app payments

Sometimes mobile games, especially those that are heavily dependent on in-game purchases (IAP), are not always aligned with both profitability and player satisfaction. Some media-space experts consider these games more similar to a "gambling" process than an entertaining game. According to a Sensor Tower report, overall mobile games revenue in 2023 from in-app payments has reached more than 90 billion dollars. This amount, compared with previous years, indicates stable and significant growth, and it is expected that in 2024, mobile games revenue from in-app payments has been estimated at about 44 billion dollars.
Pointing to addictive gameplay loops and, in some cases, the necessity of purchasing in-game currency to gain superiority over other players as risk factors, concern is felt especially for younger audiences. It is interesting to know that this issue is seen less in console and PC games, and this very issue encourages parents to buy game consoles for their children.

• Revenue-generation models for players

The "earn money for players" system is one of the attractions of mobile games that these days has drawn the attention of game makers. Given the growing popularity of cryptocurrencies and their use as rewards in video games, players consider the mobile games scene the most suitable option for extracting real money. Unlike the Android and iOS platforms, these revenue-generation models are not prevalent in console games.
Using a mobile phone is a suitable proposal for experiencing online games and earning money. Given the nature of mobile phones, which we will address later in this note, these smart devices, relative to other game platforms such as PCs and consoles, are an ideal option for earning money.

• The superiority of the nature of mobile games over other gaming devices

The nature of mobile phones means that people have access to mobile games always and everywhere, whereas consoles and personal computers require a specific time and place. In addition, mobile games are easily downloadable and installable, and many of them are available for free. Mobile games also include various types; from simple games and puzzles to more complex and strategic games. This variety allows users to install games on their phones that match their taste and situation. Many of these games are designed in such a way that they can be played in short periods, such as while waiting or resting.
A large number of mobile games are free and use an in-app payment model. This enables more people to easily gain access to the games. The costs related to these games and in-app purchases are also usually lower than those of console and PC games. Mobile games are often integrated with social networks such as Facebook, which makes it possible to compete and share achievements. Also, many of these games provide the possibility of playing online with friends or competing with other players. The next important issue is the impact of technological progress in mobile phones. The high processing power of mobile games and the use of unique features such as a touchscreen, accelerometer, and GPS have made the gaming experience on mobile phones distinctive and attractive.
Final word
Users' loyalty to mobile games and developers' support for them should be sought in the various aspects of profitability from these games. Diverse profitability models for developers, such as advertising and in-app payments, and on the other side the possibility of earning income for players, have turned mobile phones into an entertainment-based income-generating tool. Also convenience in 2024, revenue from mobile games is forecast at about 111.4 billion dollars, which compared with last year shows growth of about 4 percent. The US and Chinese markets have played an important role in this growth, and it is forecast that 40 percent of the annual increase in revenue in this field will come from these countries.

 

Short link: nmfr.ir/033