Mobile games find traction with investors
Investments in mobile games startups have increased in the second quarter of this year, according to a new report from Digi-Capital, an investment group devoted to the game industry. The report shows that the value of these investments has increased by some 63% over what it had been in the first half of 2012, reaching $706 million. The report also shows that the number of investments in game companies has grown by 7%.
Report highlights the transactions mobile games represent
According to the report, mobile games have seen strong growth this year. These games accounted for 56% of the transaction value and 37% of the transaction volume seen in the game industry. The growth that mobile games have been experiencing is largely due to the increased proliferation of smartphones and tablets. As these devices become more available, more consumers are being drawn into the mobile gaming space. Many of these consumers have shown that they are willing to spend their money on these games.
Online functionality proves popular among consumers
The report predicts that mobile games and online games could grow to account for 55% of the $83 billion game market by 2016. Online games have proven to be particularly attractive due to the community elements they feature. Mobile games with online functionality have managed to attract the enthusiasm of consumers around the world, many of whom have begun seeking out similar games that offer community-based gameplay.
Tablets are favored for mobile gaming
Mobile games currently represent 72% of the money that is spent on mobile applications. This includes in-app payments that consumers make to unlock additional content. These games have become most popular on tablet devices. The report shows that tablets account for nearly 67% of mobile game use. Consumers appear to favor tablet devices for gaming because of the larger screens that these devices sport as well as their more advance graphics processing units.
China proves promising market for mobile games
In China, mobile games are quickly becoming a big deal. Smartphones and tablets have been gaining popularity throughout the country for some time, but mobile gaming is a relatively new trend among young consumers. Over the past few years, mobile games have become one of the primary interests among consumers throughout China. This has partly to do with a ban placed against traditional gaming consoles by the Central Government. This ban essentially ensured that mobile devices would be the most popular gaming platforms among consumers.
Companies like Yodo1 hold keys to Chinese market
Enthusiasm concerning China’s mobile games market is quite high, considering the fact that this sector alone accounted for more than $352 million in revenue during the first quarter of 2013. During the first quarter, the market experienced a 30% increase in revenue over the previous year. Yodo1 is one of the Chinese gaming companies that have been taking note of the growing interest that consumers have in mobile games and the financial benefits that this sector represents.
China too big to ignore for the game industry
According to Yodo1 CEO Henry Fong, the Chinese market is too promising to ignore. Yodo1 works with developers from Western countries and helps them bring their mobile games to China. Without companies like Yodo1, Western developers would have difficulty entering the Chinese market due to the country’s stringent regulations concerning foreign trade. Gameloft, a French company, first tried to break into China in 2003 and has only very recently found the stability it needs to pursue consumers in a significant way with its mobile games.
Mobile games could be a successful vehicle for companies like Yodo1
Companies like Yodo1 have taken note of the promising environments that mobile games are subjected to in China and have been positioning themselves to be attractive to foreign developers. These companies essentially hold the keys to the Chinese market and many are well aware of this fact. For these organizations, mobile games are not the only an entertainment medium, they are also a promising business opportunity.
