Playnomics sheds some light on spending in mobile games
Playnomics, a social game analysis firm, has released new data concerning the financial aspects of mobile games and in-app purchases. Mobile games are typically free to obtain, which is partly why they have become so popular among consumers. Because many of these games are free, developers rely heavily on advertisements and in-app purchases to generate revenue. In-app purchases, often referred to as microtransactions, are somewhat controversial among consumers, but any controversy surrounding the issue has not been enough to deter consumers from actually spending money on mobile games.
Spending dominated by top 1% of consumers
According to the data from Playnomics, there is a significant disparity among the consumers that are spending money on mobile games. The data shows that the top 1% of new consumers spending money on these games represent 33% of all spending on these games. These consumers are referred to as “whales” in the mobile games space because they hold considerable purchasing power. The data also shows that the top 20% of consumers represent more than 90% of all spending in mobile games.
Majority of consumers are not spending money on mobile games
Playnomics has examined the behavior of more than 1.7 million consumers that play mobile games and social games. The company found that approximately 0.77% of these consumers were spending money on in-app purchases. The data suggests that the vast majority of consumers are not spending any money on mobile games, apart from the price they pay to acquire games that are not free outright. Playnomics notes that the top 1% of consumers spending money on these games represent the majority of the spending being seen in the mobile games space.
Data shows that a single consumer can spend as much as $7,400 on mobile games
The data shows that a single consumer that is in the 1% bracket can spend as much as $7,400 on in-app purchases. The average consumer will spend approximately $43 on mobile games and in-app purchases. Playnomics notes that consumers will typically spend nearly 30 minutes per play session and complete an average of 5.9 play sessions in any given day.
Mobile games prove attractive for Square Enix
Acclaimed game developer and publisher Square Enix has suffered through a turbulent year. The famed Japanese company had once been considered a titan of the game industry, but has struggled in the wake of the release of several lackluster games that have not performed well in any market. Even though the company’s most recent releases, such as Tomb Raider and Sleeping Dogs, have received critical acclaim, these titles have failed to meet the company’s lofty expectations. The poor performance of Square Enix’s console and PC games may be pushing the company to show more interest in mobile games.
Company continues to struggle with criticism from consumers
In the past, Square Enix has received praise for providing gamers with quality experiences that were almost impossible to find elsewhere. The company has a tendency to push the boundaries of modern console technology in an attempt to provide gamers with enjoyable experiences that have been difficult to find elsewhere. In recent years, the company has been met with increasing difficulty in this endeavor, often receiving criticism for focusing too much on the technology aspects of gaming and not enough on the actual experience of gaming.
Square Enix aims to bring console experience to mobile games
With the advent of mobile games beginning to draw attention away from traditional consoles, Square Enix is beginning to see a new opportunity to dazzle consumers with its extensive experience in the realm of gaming technology. The company has begun to show its interest in bringing the console experience to the mobile space, effectively improving the quality of mobile games significantly in the future. The company has plans to publish mobile games in the future and intends to focus on games that deliver a quality and technologically advanced experience to consumers.
Game industry growing increasingly mobile
Much of the game industry has begun to show interest in the mobile space. Mobile games have been drawing consumers away from traditional gaming platforms for some time, but have only recently begun cutting into the sales of traditional consoles. Square Enix is not t he only company with plans to take mobile games more seriously and a new focus on these kinds of games may help the company recover much of the support it has lost among consumers.
