Digital sales show strong growth with the help of mobile games
Market research firm SuperData has released a new study focused on the game industry and the sales therein. The study shows that sales for the month of March have grown somewhat over the level they had been in the same month in 2012. The growth is most pronounced in the field of mobile games, which have become rampantly popular among consumers of various types. The study shows that social games, however, continue to experience a steady decline in terms of revenue.
Digital sales grow 2.9%
According to the study, digital game sales for March grew to $875 million, an increase of 2.9% over the previous year. Mobile games, especially those that have some online and social elements, contributed heavily to this growth. Mobile games were able to capture the attention of consumers with an assortment of in-app purchases and advertisements, all of which contributed to the overall revenue that these games produced.
Social games begin losing ground with consumers
While mobile games saw growth, social games continue to experience a decline. Social games, those found on social networking sites like Facebook, have begun to lose favor among consumers due to lack of innovation and the inherent difficulty in engaging consumers in advertisements and in-game purchases on such platforms. SuperData notes that Facebook insists that social games are on the rise, but there has been a decided lack of competition in the social network’s social gaming environment since Zynga’s fall from grace.
EA pulling out of social gaming space
Large game publisher Electronic Arts announced early this week that it would be closing down some of its social games hosted on Facebook. The publisher has adopted a strong interest in mobile games, considering social to be a thing of the past and mobile to be the future. While EA already has a strong presence in the game industry, the company has found it difficult to compete in the mobile games arena and is keen to devote more focus therein.
EA continues to become more enthusiastic toward mobile games
Electronic Arts is one of the most powerful companies in the game industry, so when it starts putting more focus on mobile games, it is not doing so arbitrarily. Mobile games are quickly becoming the most popular product that the game industry has to offer. These games are enjoyed by millions of mobile consumers around the world, many of whom are more than happy to put their own money into these games to unlock new features are purchase virtual currencies. Electronic Arts has been growing more vocal on the issue of mobile games as consumers begin to become more critical of the company’s entry into this sector.
Freemium model enjoyed by most consumers
According to EA, the vast majority of people that play mobile games prefer the free-to-play, often called “freemium,” business model. Through this model, consumers can obtain and play mobile games free of charge. This allows games to circulate among a larger audience, potentially acquiring more fans and exposing more people to in-game advertisements, which generate revenue for both the game’s developer and the game’s publisher. Many of the features of these games could be locked, however, with players having to pay to access such features. This particular practice has been criticized by many gamers as greedy and dubious.
In-app purchases are widely supported
EA notes that consumers are enthusiastic about in-app purchases because the can choose how they want to experience the game they are playing. Some purchases involve power-ups that can significantly decrease the time investment requires to complete mobile games. These allow players to enjoy games at a pace that is more accommodating to their tastes. Moreover, in-app purchases are the ideal way for mobile games to generate revenue for their developers. EA suggests that traditional games that require an upfront purchase in order to play typically generate less revenue and are considered, on the business side, outdated.
Freemium is the most popular model among independent developers
While a large portion of gamers enjoy mobile games, many suggest that EA’s insistence on the freemium model is a prime example of corporate greed ruining the game industry. Developers, however, are the primary parties responsible for this business model. Independent developers, those that release games without the backing of publishers like EA, rely heavily on this model in order to remain in business, as the freemium model is the best way for these developers to generate profits from their mobile games.
