Skillz aims to take a new approach on mobile games
A new mobile games platform for Android developers has launched this week. The platform comes from a company called Skillz, which is a startup based in San Francisco, California, and the platform puts a new twist on mobile games and their monetization. According to Skillz, the platform introduces real-money prizes into mobile games, quite literally enabling consumers to win cash for playing the games making use of the platform.
Gaming continues to change as consumers become more mobile
Mobile games are one of the fastest growing sectors in the game industry. Consumers around the world have expressed both joy and enthusiasm for mobile games that is not entirely common in the game industry, which is constantly awash with criticism and cynicism. As mobile games become more common, developers are beginning to feel the need to separate themselves from the competition. Until recently, most mobile games have been fundamentally similar, if not identical. Skillz believes that real-money prizes may provide developers with an adequate way to establish an innovative presence in their field.
Platform allows for small cash prizes
The money offered through the platform is very real and gamers have the chance to win these funds if they perform well enough. The platform fosters competition with other gamers, pitting them against one another to determine who will win a real-money prize. While the concept seems somewhat gladiatorial, the funds awarded to gamers are very small, most being in 45 cent increments, yet there are abundant chances for gamers to win up to $1,000. Nonetheless, Skillz believes that adding a financial incentive into mobile games could have a powerful effect on consumers.
Platform is not technically set up for gambling
On the surface, the platform may seem bear some resemblance to gambling. Skillz does not, however, enable gambling. The platform allows consumers to place bets on skill-based games. Such games rely less on chance and more on the capabilities of the player. Because the outcome of these games is not determined by simple luck, gambling is considered a non-issue.
Mobile games establishing a formidable presence
Consumers are expected to spend more money on mobile games than those on traditional handheld systems by the end of 2013, according to forecasts from the International Data Corporation (IDC). The research firm has tracked the sales of handheld games for some time, finding the market somewhat volatile and relatively devoid of consumer interest. Even Nintendo, which has long reigned in the realm of handheld gaming, has been seeing lackluster sales for its 3DS platform. Mobile games seem to be replacing traditional handheld gaming as smartphones and tablets become more technologically advanced.
IDC predicts decline in handheld sales through 2017
The IDC anticipates that sales for the Nintendo 3DS and the Sony PS Vita will fall by 7% year-on-year through 2017. Mobile games are expected to pick up the slack due to their rampant popularity and the widespread availability of free-to-play titles. The IDC notes that handheld games will still be able to produce higher levels of revenue, however, due to the fact that many mobile games are either free or available at a very low price. This advantage is considered modest due to the fact that most mobile games have in-app purchases and advertisements, which account for the majority of the revenue generated by these games.
Android expected to become ideal platform for mobile games
Android is considered to be the most promising platform in the mobile games sector, according to the IDC. The firm notes that the Android platform is somewhat fragmented, making it difficult for game developers to find traction through the platform the same way they can find success with the iOS platform. Nonetheless, Android has been growing to become more intuitive and accommodating to the gaming environment. So much so that the IDC expects Android to beat out all other platforms in the mobile games field in the near future.
Free-to-play model continues to grow
Free-to-play mobile games will likely be the key to dominance over handheld games. The IDC predicts that the game industry will become more adept in fashioning free-to-play business models that allow consumers to enjoy mobile games for free while also offering valuable services for a fee. Consumers remain somewhat dubious concerning in-app purchases, often called microtransactions, but the IDC anticipates that consumers will grow more accommodating as this business model becomes the norm for the game industry.
