• May 3, 2017

Mobile Gaming Market Experiences Exponential Growth

Shot of a group of coworkers talking together over a digital tablet in an office

Mobile Gaming Market Experiences Exponential Growth

Given the vast improvements in mobile technology and overall user experience, many would not be surprised to learn the mobile gaming market plans to make unprecedented growth in 2017. In an article originally produced by Emma McDonald of Newzoo, the specific figures for the mobile games market are presented with positive implications for the industry at large.

Much of this great news for the market comes from Newzoo’s quarterly update of its Global Games Market Report. The figures from the report show that there are currently 2.2 billion gamers all across the world. These gamers are expected to help the market generate roughly $108.9 billion in revenue in 2017.
The $108.9 billion in total revenue for 2017 is an increase of $7.8 billion from 2016. With the overall market expected to grow by 7.8%, it is important to note that mobile gaming represents the largest segment of overall growth. Mobile gaming is expected to grow 19% in 2017 and reach an overall figure of $46.1 billion. This means that mobile gaming will claim 42% of the total gaming market, a share once thought impossible by industry leaders.

When looking at regional leaders in mobile gaming, it will come as little surprise to anyone that Asia-Pacific is firmly ahead of all others. China alone is projected to generate $27.5 billion, or 25% of total revenue in 2017. The large overall growth in mobile gaming is expected to be mostly facilitated in China, where the recent market has been teeming with opportunity.

Much of the growth associated with mobile gaming is a direct result of the popularity of smartphone technology. Of the $46.1 billion mobile gaming is expected to generate in 2017, $35.3 billion of this will be generated by smartphone gaming. Given this increase in smartphone gaming, it would only make sense that tablet gaming would be significantly reduced. Besides gaming, overall sales of tablet units have plummeted, with only 280 million tablets being used by the active market. The recent improvements in smartphone technology have made in possible for users to play high-performance games on their phones, making the need for tablet units smaller than ever before.

While mobile gaming has found a firm foothold within a large segment of the overall market, this spells trouble for other market segments. PC gaming within browsers, for example, is expected to experience yet another year of decreasing sales. This phenomenon began in 2015 when users slowly began to transition from browser based games to emerging mobile games. In 2016, Facebook’s revenues from games hit its lowest point since 2011, while Zynga’s PC gaming figures dropped more than 30%. This decrease in sales has also hit boxed PC gaming, whose sales have been slowly overtaken by consoles and mobile technology.

Given the expected increase in mobile gaming sales in 2017, it is clear that there is a large opportunity for many businesses to find their way within this lucrative industry. Since mobile gaming platforms are typically easier to develop compared to PC and console formats, many

Businesses may find mobile gaming to be an effective piece of their marketing and operating strategies going forward.

Source: https://newzoo.com/insights/articles/the-global-games-market-will-reach-108-9-billion-in-2017-with-mobile-taking-42/?utm_campaign=Games&utm_source=email

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