Tag: console games

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.

Mobile games are outspending consoles on national television advertising

Small publishers are forking over huge amounts of money to make sure their products are seen.

Although the console gaming is known for the massive budgets it has for advertising its products on television, the latest trend has actually been for smaller publishers of mobile games to put together some considerable TV campaigns.

In fact, those smaller game companies are outspending their console counterparts at an incredible rate.

Recent statistics released by iSpot.tv have shown that among the top five video category advertising spenders on television, four are within the mobile games space. Together, those companies spent more than $130 million in the first quarter of this year. The top three were King, Machine Zone, and Supercell and their spending made up 30 percent of the entire video games category ad spend on television.

This spending on advertising for mobile games on TV outpaces that of the established console giants.

TV Advertising - Mobile GamesIn fact, those smaller mobile gaming companies didn’t just spend more than Nintendo, PlayStation and Xbox, but they also spent a larger amount than the game manufacturers for those consoles, including Electronic Arts, Ubisoft, and 2K.

Speculation in the industry has suggested that the reason for this trend is due to the shifts occurring within the video game industry as a whole. In 2014, console manufacturers had still been holding the lead position in terms of spending within the video game category. The reason was that Microsoft and Sony were trying to give an explosive launch to their new generation devices (Xbox One and PlayStation 4). The combined spending of those two companies made up 36 percent of the entire category. However, during the same period this year, the combined spending of those brands represented only about 10 percent of the category.

While the first quarter of the year is typically a rather slow one when it comes to console game advertising, as they will usually spend the largest amount of money during the fourth quarter when they release their biggest titles, this doesn’t change the fact that publishers of mobile games are spending a larger amount now than they ever have before on television advertising.