The Revenue of the Entire Gaming Industry is Dominated by Mobile Games, Although Often Overlooked by Gamers. Many gamers don’t really think much about mobile gaming, but it actually brings in a whopping 77% of the entire gaming industry’s revenue.
It’s a significant chunk! Even though it may not be the first thing that comes to mind for most gamers, mobile games play a major role in the industry’s financial success.
In simpler terms, most gamers tend to overlook mobile gaming, but it’s responsible for a large portion of the money the gaming industry makes. It may not be the primary focus for many players, but it’s crucial for the industry’s overall profits.
Mobile Gaming is an Afterthought For Many Gamers But it Makes 77% of The Entire Industry’s Revenue
Many gamers don’t really pay much attention to mobile gaming. They see it as a less serious platform with simpler and casual games that aren’t very enjoyable. But the truth is, mobile gaming is a massive industry and it’s making way more money than any other part of the gaming market.
A recent report shows that in 2022, mobile gaming made a whopping $92.2 billion in revenue. That’s a staggering 77% of the entire global gaming market.
Mobile gaming has experienced a remarkable rise in popularity lately, mainly because almost everyone has a smartphone these days and it’s super easy to play games on them. This accessibility has attracted a huge and diverse audience, including people who aren’t usually into traditional gaming.
The Earnings from Mobile Gaming
Even free mobile games can generate significant revenue through advertisements, in-game purchases, and a large user base. Here are some important facts and trends about mobile game revenues in 2023:
In 2022, mobile games made a total revenue of $92.2 billion. Although this was a 6.1% decrease compared to the previous year ($98.2 billion), it still represents a substantial 35% increase since 2019 ($68.3 billion).
Projections suggest that the mobile gaming industry will have an annual growth rate of 12.3% until 2030.
According to the Udonis report, out of the total revenue of $184 billion generated by various game types in 2022, mobile gaming accounted for 50%, which is equivalent to $92 billion.
It is estimated that by 2030, the industry will be valued at around $338 billion, nearly double its current value.
In 2022, iOS mobile game revenue exceeded Android’s game revenue by 60%. iOS games earned approximately $50 billion, while games on the Google Play Store for Android accumulated only $31.3 billion. This trend has remained consistent since 2016.
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Data Analysis
SensorTower’s data reveals that among the top-grossing mobile game genres worldwide, RPGs generated the most revenue, reaching $20.2 billion. 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.
Experts estimate that by 2030, the mobile gaming industry will reach a valuation of about $338 billion, almost twice its current value.
In 2022, iOS mobile games outperformed Android games by a significant margin, with iOS games generating approximately $50 billion in revenue, while games on the Google Play Store for Android accumulated only $31.3 billion. This trend of iOS surpassing Android has remained consistent since 2016.
SensorTower’s data, the top-grossing mobile game genres worldwide
Based on SensorTower’s data, the top-grossing mobile game genres worldwide were as follows:
- RPGs (Role-Playing Games) claimed the first spot, generating a whopping $20.2 billion in revenue.
- Strategy games came in a close second with $16.3 billion in revenue.
- Puzzle games followed with $9.1 billion in revenue.
- Casino games earned a significant $8 billion, while Shooters made $4.6 billion.
- Simulation and Action genres both generated $4.5 billion in revenue.
Moving further down the list, sports games accrued $2.7 billion, arcade games earned $2.1 billion, and tabletop games rounded out the rankings with $1.7 billion in revenue. These figures represent the most profitable genres in the mobile gaming industry for that specific 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
Over the years, mobile gaming has proven to be highly profitable by utilizing various methods to generate revenue. There are multiple ways in which mobile games monetize and contribute to the financial success of the industry.
One common method is through in-app purchases, where players can buy items like currency, power-ups, or skins to enhance their gaming experience. These purchases can be made using real money or in-game currency.
Advertising is another significant revenue stream for mobile games. Players may encounter ads before or during gameplay, promoting other games, products, or services.
While less common, subscriptions are gaining popularity in mobile gaming. Players can opt for monthly or annual fees to access exclusive content or features.
Partnerships offer yet another avenue for revenue generation in mobile games. Developers may partner with other companies to promote their games. For instance, a mobile game developer could collaborate with a beverage brand to provide in-game currency to players who purchase their drinks. Such partnerships help reach new audiences and generate revenue.
These diverse monetization strategies have contributed to the financial success of mobile gaming.
Mobile apps revenue worldwide from 2018 to 2027, by segment(in billion U.S. dollars)
Based on the provided data, advertising emerged as the primary revenue source for mobile apps, with in-app purchases following closely behind. In 2022, advertising proved to be highly lucrative for mobile app publishers, generating an impressive revenue of nearly 266 billion U.S. dollars. In-app purchases also made a significant contribution, accounting for approximately 231 billion U.S. dollars.
These figures highlight the substantial financial impact of both advertising and in-app purchases in the mobile app industry.
Mobile Game Evolution
Looking ahead, it is expected that spending on freemium apps will continue to increase in the coming years. However, revenues from paid apps are projected to reach approximately seven billion U.S. dollars by 2027.
The success of mobile gaming has not only attracted significant investment from developers and publishers but has also enticed traditional gaming companies to enter the mobile market and adapt their franchises for mobile platforms.
It is important to note that although mobile gaming dominates in terms of revenue, it may not be the preferred choice for all gamers. Many players still prioritize console, PC, or dedicated handheld gaming experiences due to factors such as depth, immersive graphics, and precise controls.
Nevertheless, the significance of mobile gaming in the industry should not be overlooked. Its accessibility, broad appeal, and lucrative revenue streams have made it a crucial sector driving innovation, creativity, and financial growth. As technology continues to advance, it will be interesting to observe how the mobile gaming landscape evolves and whether it maintains its strong position within the industry.
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