Tag: mobile games revenue

The popularity of mobile games double revenues at Supercell

The success of several of these apps made it possible for earnings to break the $1.7 billion mark last year.

Supercell Oy, the company behind hit mobile games such as Hay Day and Clash of Clans, has managed to double its own earnings due to the continuing popularity of this kind of app throughout 2014, bringing its revenues to $1.7 billion, that year.

The company from Finland has actually seen a tripling of its earnings that are specific to its top games.

The annual revenue that the company brought in from its leading mobile games – Hay Day, Clash of Clans, and boom Beach – actually managed to triple in its growth, last year. Supercell explained that its earnings from last year had risen from having been a notably lower $570 million in 2013. While that figure was, obviously, still very healthy, this also shows a staggering increase over the span of a year. Its pre-tax earnings, before interest, depreciation, and amortization, were $565 million, last year. In 2013, that figure had been $267 million.

A great deal of the success of these mobile games came from certain specific markets around the world.

Mobile Games - Doubled RevenueThese markets – such as China and Korea – were exposed to highly localized and strategic mobile marketing campaigns that proved to be greatly successful and drew significant appeal. This type of achievement has proven to be a very challenging one for Western game developers in the past, said Ilkka Paananen, the co-founder and the chief executive at CEO, when speaking at a news conference.

SoftBank Corp, a telecom giant from Japan, purchased a 51.4 percent share of Supercell in October 2013 for $1.5 billion, an amount that they may now be considering to be a bargain, considering the consistent success and growth of the company, so far.

That company will be receiving a $170 million dividend payout from the mobile games firm as a result of the earnings that were brought in throughout 2014. This, according to data that has been made available by Supercell. It will be interesting to watch the success of the company to see whether it will be capable of maintaining this trend instead of allowing the achievement to become a flash in the pan.

Mobile gaming to surpass consoles in revenue next year

Mobile games may be the rulers of the gaming industry in 2015.

According to market research firm, Newzoo, the mobile gaming industry may be exceptionally strong next year, as mobile games are expected to beat console games in revenue, hitting the $30.3 billion mark in 2015, an increase from the anticipated $25 billion in 2014.

There has been strong year-to-date growth in both mature and emerging markets for tablet and smartphone games.

Compared to the predictions of SuperData Research, the Amsterdam-based Newzoo has greater optimism when it comes to mobile games. Newzoo’s rival, SuperDatat Research, expects that mobile games will only reach $21.1 billion by the end of 2014. That being said it is anticipated that by 2017, games for mobile devices will hit $40 billion.

According to the newly revised 2014 Newzoo forecast, Western Europe’s mobile games market revenue is anticipated to grow 47%, while North America’s is anticipated to grow 51%. Of all the markets, Southeast Asia and China are predicted to be the fastest growing and will expand by 86%

Mobile Gaming vs. consolesNewzoo credits the high mobile growth rate to “organic growth” for boosting the market in general and “cannibalistic growth”, which comes at the cost of other segments. Spending for massively multiplayer online games and online PC games is moving toward tablets and smartphones, while social, casual and handheld console gaming have weakened.

Apple mobile gaming is doing better than Nintendo.

It also appears that the game revenues of Apple could actually be two times greater than Nintendo in 2014. The electronics giant is expected to produce $4 billion in revenue from mobile games sold in iTunes. Meanwhile, Google may generate game revenue totaling $3 billion this year. On the flip side of the coin, Nintendo’s revenues were $2.4 billion in 2013 and this number is predicted to drop in 2014.

Newzoo CEO Peter Warman commented that in the mature Western mobile gaming markets, the battle between Android and iOS is shifting its focus to tablets. Although the iPad gives iOS the advantage in general mobile game spending, the Android market is split across diverse devices and operating systems.