Tag: mobile games revenue

Mobile games generate more revenue than portable consoles

Mobile devices like smartphones and tablets have come to play a major role in the game industry. The advent of smartphones birthed the popularity of applications, relatively light pieces of software that provide services and entertainment for people all over the world. As smartphones became more advanced, so too did their applications. Mobile games have become the most popular of these applications, and they have benefitted tremendously from the advances made in mobile technology. Now, these mobile games are generating revenue that is dwarfing that produced through the game industry’s much touted portable consoles.

Consoles not living up to expectations

Nintendo and Sony are the biggest names in the portable console market. Both companies recently released portable consoles that were highly anticipated among consumers. Despite this anticipation, however, these consoles did not sell as well as the companies had hopes. Both the Nintendo 3DS and Sony Playstation Vita have seen lackluster sales globally and because these consoles are not universally favored by consumers, the games they support have generated less revenue than Sony and Nintendo would have liked.

Data highlights popularity of mobile games

Research firms IDC and App Annie have release data concerning the disparity in the revenues generated through mobile games and portable consoles. The data shows that portable consoles see high sales during holiday seasons, but mobile games account for year-round spending. Approximately 60% of all app spending in Apple’s App Store, and 80% in Google Play, was directed to mobile games. Most of these games include in-game transactions, which entice gamers to purchase power-ups or virtual currencies in order to gain an edge.

Game industry continues to adjust to the clout of mobile devices

The mobile games market has become extremely influential in the overall game industry. Large developers that had, in the past, been focused exclusively on consoles are beginning to set their sights on mobile devices in order to tap into a new generation of consumers. Publishers like Electronic Arts and Activision are also taking a strong position on mobile gaming, expecting to see major success in this market that they have not seen in portable consoles.

Mobile games account for majority of revenue in apps market

Mobile technology has become an important aspect of the lives of consumers throughout the world. The advent of mobile technology paved the way for applications, pieces of software that provide consumers with a wide variety of services. The mobile applications business has become very lucrative, especially for the developers of mobile games. A new report for Canalys, a market insight and analysis firm, shows that mobile games are a major player in the applications space, and that game developers account for the majority of revenue generated therein.

Report shows that games are far more popular than other applications

According to the report, mobile games are among the most popular applications for Android and iOS mobile platforms. These games occupy a variety of genres and some have become the most favored forms of entertainment for some consumers. According to Canalys, some 25 mobile games developers accounted for more than half of the revenue generated through the applications market in the U.S. during the first 20 days of November. These developers accounted for more than $60 million in downloads and in-app purchases over this period of time.

Games offer versatile experiences

Mobile games are dominating the applications space. This may be due to the simplicity of mobile games and the lengths developers go to in order to ensure constant engagement with consumers. Other applications, such as GPS navigation apps, are not as popular because they are not exceedingly entertaining and serve one function. Mobile games, however, provide consumers with a source of entertainment that can be easily attained and customized to suit their interests.

Developers face major challenges despite success

Though mobile games have come to play a domineering role in the applications market, developers are still faced with significant challenges. The success of mobile gaming has attracted a veritable tide of new development studios, which are over-saturating the market and making it difficult for consumers to find games they are interested in and those that offer a quality experience. Marketability is also a serious challenge, as developers of mobile games do not typically operate with a strong marketing budget that can reach millions of consumers.