Glu Mobile hits a speed bump with its mobile games
Mobile games have been gaining a lot of popularity lately, but there could be trouble on the horizon. Glu Mobile, a leading developer of mobile games, is forecasting a larger-than-expected loss for the latest quarter of 2013. This forecast comes on the heels of losses seen during the second quarter of the year. Glu Mobile has seen the sale of mobile games and the spending within these games drop somewhat among smartphone and tablet users this year.
Consumers may be showing fatigue when it comes to mobile gaming
Mobile games have managed to attract a great deal of interest in recent years, proving to be alluring to consumers because of their convenient nature and, in some cases, addictive design. These games have seen impressive growth in several parts of the world, but Glu Mobile suggests that consumers could be experiencing some degree of fatigue when it comes to mobile gaming. A lack of innovation could also be a problematic issue as more mobile games begin offering similar experiences.
Glu Mobile sees losses during third quarter
Glu Mobile boasts of 40 million active users and primarily generates revenue through advertisements and in-game purchases. The company expects to see revenue call by 16.5% in the third quarter over what it had seen in the same period in 2012. This has led the company’s shares to fall in value by 9%. Losses during the third quarter were larger than Glu Mobile had expected, but the company continues to show relatively strong results within the game industry.
Mobile games could face a troubling future
While consumers have shown a great deal of support for mobile games the variety that these games exhibit has diminished over time. Many mobile games are indistinguishable from one another in terms of experience and gameplay, which has proven unattractive for many consumers. Moreover, the simple nature of these games allows consumers to move from title to title quickly, often without experiencing the majority of what a particular title has to offer.