Mobile Gaming is an Afterthought For Many Gamers But it Makes 77% of The Entire Industry’s Revenue

Many gamers often view mobile gaming as an afterthought. It’s considered a less serious platform, featuring games that tend to be simpler, more casual, and usually not very enjoyable. However, the truth is that mobile gaming is a massive industry, generating significantly more revenue than any other part of the gaming market.

According to a recent report, mobile gaming generated $92.2 billion in revenue in 2022. This represents 77% of the entire global gaming market.

Mobile gaming has seen significant growth in recent years, mainly because smartphones are now widely available and user-friendly. This easy access to games on mobile devices has drawn in a large and varied audience, including casual gamers who might not have used traditional gaming platforms before.

Mobile Gaming Revenue

Even mobile games that are available for free can generate a surprisingly significant amount of revenue through various means like advertisements, in-game purchases, and having a large user base. Here are some key facts and trends regarding mobile game revenues in 2023:

In 2022, mobile games generated total revenue of $92.2 billion. Although this represents a 6.1% decrease compared to the previous year ($98.2 billion), it still reflects a substantial 35% increase in revenue since 2019 ($68.3 billion).

Projections indicate that the mobile gaming industry will have a compound annual growth rate (CAGR) of 12.3% until 2030.

This is supported by Udonis report which asserts that, among the total revenue of $184 billion generated by various game types in 2022, the mobile gaming sector accounted for 50%, equivalent to $92 billion.

It is estimated that by 2030, the industry will be valued at around $338 billion, nearly double its current worth.

In 2022, iOS mobile game revenue surpassed Android’s game revenue by 60%. iOS games generated approximately $50 billion in revenue, while games on Android’s Google Play Store only amounted to $31.3 billion. This trend has remained consistent since 2016.

According to SensorTower’s data, in the top-grossing mobile game genres worldwide, RPGs topped the list, generating $20.2 billion in revenue. Strategy games followed closely with $16.3 billion, while Puzzle games brought in $9.1 billion. Casino games earned $8 billion, and Shooters made $4.6 billion. Simulation and Action genres both generated $4.5 billion.

Sports games accrued $2.7 billion, Arcade games earned $2.1 billion, and Tabletop games rounded out the list with $1.7 billion. These figures represent the most profitable genres in the mobile gaming industry for that year.

Since 2017, China has consistently held the top position in terms of consumer spending on mobile games. The United States and Japan have consistently followed as the second and third leading countries, respectively, in terms of mobile game revenue.

Diverse Revenue Streams Drive Mobile Gaming’s Financial Success

Mobile gaming has demonstrated its ability to generate substantial revenue through multiple streams. There are diverse avenues through which mobile games monetize and contribute to the industry’s financial success.

In-app purchases are the most common way that mobile games generate revenue. Players can purchase in-game items, such as currency, power-ups, or skins, to improve their gaming experience. In-app purchases can be made using real money or in-game currency.

Advertising is another major source of revenue for mobile games. When players download a mobile game, they may be shown ads before or during the game. These ads can be for other games, products, or services.

Subscriptions are a less common way to generate revenue in mobile gaming, but they are becoming more popular. Players can pay a monthly or annual fee to access exclusive content or features.

Partnerships are another way that mobile games can generate revenue. In a partnership, a mobile game developer partners with another company to promote their game. For example, a mobile game developer might partner with a soft drink company to offer in-game currency for players who purchase a soft drink. Partnerships can be a good way to reach a new audience and generate revenue.

Mobile apps revenue worldwide from 2018 to 2027, by segment(in billion U.S. dollars)

According to the data above, advertising was the leading source of revenue for mobile apps, followed by in-app purchases. In 2022, advertising generated a substantial amount of nearly 266 billion U.S. dollars for mobile app publishers, while in-app purchases accounted for approximately 231 billion U.S. dollars.

Mobile Game Evolution

Looking ahead, it is anticipated that spending on freemium apps will continue to rise in the coming years. However, revenues from paid apps are projected to reach around seven billion U.S. dollars by 2027.

This financial success has not only attracted developers and publishers to invest heavily in mobile game development but has also encouraged traditional gaming companies to enter the mobile market and adapt their franchises for mobile platforms.

However, it’s important to note that the dominance of mobile gaming in terms of revenue doesn’t necessarily equate to it being the preferred choice for all gamers. There is still a substantial segment of gamers who prioritize console, PC, or dedicated handheld gaming experiences for their depth, immersive graphics, and precise controls.

Nonetheless, the significance of mobile gaming in the industry cannot be ignored. Its accessibility, mass appeal, and lucrative revenue streams have made it a crucial sector that drives innovation, creativity, and financial growth. As technology continues to advance, it will be intriguing to see how the mobile gaming landscape evolves and whether it continues to maintain its strong position within the industry.

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