Category: Mobile Gaming

Mobile games account for majority of mobile applications market revenue for 2012

| December 18, 2012

Mobile games generate significant profits

Mobile applications represent a huge and massively lucrative market. According to Flurry, a leading analytic firm operating in the mobile space, mobile applications accounted for $10 billion in revenue during 2012. The firm has released a report concerning the lucrative mobile applications business, which highlights the impact of free mobile games. The report shows that though free mobile games do not cost anything to play, that account for the majority of the revenue seen in the mobile applications market.

80% of revenue generated through free mobile games

Mobile games are among the most popular applications that are available to consumers with smart phones and tablets. These games often provide hours of entertainment and are typically designed to be very addicting. For many, mobile games are valuable assets because most of these games are free-to-play. Most of these games are filled with advertisements, however, which is part of the reason why they are generating so much money. According to the Flurry report, free mobile games accounted for 80% of the $10 billion in revenue the app market saw t his year.

In-app advertisements help generate revenueMobile Games market revenue

In-app advertisements are not the only thing generating income for mobile games. Many games come equipped with a “cash shop,” which offers bonuses, new equipment, and exclusive features to gamers that want to spend money on the game itself. These cash shop marketplaces are very common in free-to-play games and account for the majority of the revenue they manage to generate. The report also shows that consumers spend large amounts of time on free-to-play games, thus increasing the likelihood that they will purchase something from the cash shop.

Free-to-play games are a lucrative business

The free-to-play model has become very lucrative for developers of mobile games. The report suggests that most developers have yet to identify the ideal niche in which these types of games flourish. Companies like Electronic Arts and Zynga have managed to find a way to make free-to-play games highly appealing to consumers with some cash to spend. Though the latter has been experiencing financial problems of late, Electronic Arts may serve as a powerful example of how to develop games that emphasis participation in a cash shop.

Mobile games for kids may not be as secure as they should

| December 17, 2012

 

Mobile Games ChildrenFederal Trade Commission targets mobile games designed for children

Privacy in mobile games has become a very problematic issue, according to the Federal Trade Commission, a government agency focused on consumer rights. According to the agency, the developers of mobile games that target children are not doing enough to protect the privacy of these consumers. These mobile applications often collect information from their users, such as name, email address, and even financial information provided by parents. If these applications are compromised by malware, this information could be exploited, with catastrophic consequences.

Mobile games for children are not developed with privacy in mind

Developers of mobile games, especially those targeting children, rarely have privacy as a primary concern. Younger consumers are not necessarily considered to have access to any vital information that would attract the interest of a hacker, but this is not usually the case. The Federal Trade Commission notes that many young consumers make use of their parent’s information, often without the knowledge of their parent. While this practice is typically rare, the growing popularity of mobile devices and their reach to a younger audience is causing this practice to spike.

Developers not supplying enough information

Moreover, the Federal Trade Commission suggests that developers of mobile games have not done enough to provide parents with the information they need to make informed choices regarding the applications that their children use. Mobile games designed for younger consumers are often marketed in a way that would be appealing to children, not adults. The agency notes that only 15% of the mobile games it examined for its investigation provided information letting parents know that there are in-app advertisements, many of which are designed to acquire information from the person following them.

Privacy continues to be a major concern for mobile consumers

Privacy continues to be a hot topic in the mobile space. Companies like Apple have run into legal trouble in the past over their privacy and security methods. Privacy concerns are beginning to affect the mobile applications market, with consumers becoming less willing to purchase or download a particular app unless they can be convinced that their information is protected in some way.