Tag: mobile gaming industry

Mobile gaming in China is massive and will only get bigger

While the market in the country is currently about half that of the United States, its growth rate is tremendous.

There is no doubt that mobile gaming is huge in China, despite the fact that it represents only a fraction of its complete video games market, and the fact that it is only about half of the size of the American market.

What makes the difference is the very rapid growth rate that the Chinese mobile games market is experiencing.

Mobile gaming is far lower, per capita, in the Chinese market than in the U.S. but the potential is only just starting to be tapped and the gap is about to close exceptionally rapidly. Currently, it is estimate that the market there is at around $9.7 billion (60 billion yuan). It has been consoles and, to a much greater extent, PC games that have been leading the way in terms of revenue in the country. However, the prediction now is that when compared to mobile devices, PC games may be about to lose their top position. This doesn’t necessarily mean that PC has no future, but it instead means that there is a great deal more room to grow in mobile.

Mobile gaming is accessible to a far larger number of people that haven’t tapped into it yet, in China.

Mobile Gaming ChinaThe lead held by PC games remains a very sizeable one, but the situation has shown that growth is starting to slow, simply because it is starting to reach a level of saturation. Those who have PCs and who will use them for gaming are already doing so, to a large extent. What makes the mobile games environment have such potential to take the lead is that there are far more smartphone users than computer owners in the country, and they are now starting to get into these apps with a vengeance.

The growth in mobile gaming has been an amazing 400 percent, from having been 2.5 billion yuan a couple of years ago, to 125.2 billion yuan, last year. With an estimated three times more smartphone and tablet based gamers than there are on PCs, that shows that there is still quite a distance for mobile to go before it has reached its maturity.

Mobile gaming is going to be a $45 billion industry in 3 years

It is believed that these games will take off to such a degree that consoles will be left in the dust.

Digi-Capital, an intelligence firm, has released the results of some of its latest research, which has revealed that spending on mobile gaming software is growing at such a rate that it will have left consoles way behind by the year 2018.

It has predicted that spending on mobile games across all platforms, this year, will reach $88 billion.

This will, in fact, mean that mobile gaming will not only outpace that of consoles, but of the entire industry. Digi-Capital has also predicted that the tablet and smartphone games spending figure will rise at a rate of 8 percent per year, so that it will break the $110 billion mark by the close of 2018. No other type of device is expected to generate a greater amount of revenue than mobile when it comes to video games. In fact, those devices are predicted to bring in more money than consoles by this year, already.

These console and mobile gaming figures do not include the sales from hardware, such as the systems themselves.

Mobile Gaming - multi-billion dollar industryThe figures are based on the sale of mobile games, only, and do not include the income generated from the sale of systems such as PlayStation 4 and Xbox One. Furthermore, those figures also didn’t take into account the PC games over Steam, or any of the massively successful free-to-play games such as League of Legends.

Tim Merel, the founder and managing director of Digi-Capital, explained in the company’s report that “Where mobile games will take $3 of every $10 spent by gamers on software in 2015, that figure will go up to $4 out of every $10 by 2018.” He also went on to add that “Mobile games revenue will grow from $29 billion in 2015 to $45 billion by 2018 at 15 percent annual growth.”

Merel explained that since 2013, the Asian market has dominated the revenue for mobile gaming, when compared to Europe and North America. The company forecasted that this market will continue to move ahead, until it will represent half of all revenue in smartphone and tablet based games by 2018.