Mobile games may be an ideal platform for marketing
The mobile space has managed to carve out a very important place in the world of business. The advent of mobile technology has forced companies both large and small to take mobile more seriously, leveraging their resources to connect with an emerging generation of mobile consumers. Mobile marketing, however, has proven difficult for the business world, with display advertisements and banners posting lackluster results. Mobile games appear to be showing the most success when it comes to marketing, but businesses have traditionally considered games to be novelty at best.
Report highlights investments behind mobile games
According to a recent report from Digi-Capital, an investment bank, investments in mobile games spiked by 35% in the first quarter of this year. Investments in every other gaming fields showed only modest growth at best, if not declines in certain aspects. Despite this growth, the investments behind mobile games are leveling off as investors begin to grow shrewder and small development companies either go out of business or are assimilated into their larger counterparts.
Market showing signs of maturing
Some would argue that investors showing more concern for the mobile games space is a sign that the market is on the verge of a fall. This may not be the case, however, as the market is beginning to show signs of maturity and stabilization. New developers are entering the field at a rapid rate and mobile marketing has helped many of these developers find the success they need to continue producing mobile games. Moreover, new business models are emerging that are proving very popular among consumers, as is the case with the free-to-play model.
Marketing helps mobile games thrive
Mobile games have thrived off the effective use of mobile marketing strategies. In-game advertisements are seen by all those playing games. While many gamers may not actively engage in these advertisements, a significant portion of these gamers are willing to do so simply to remove their presence on the screen of their mobile device. If these advertisements are catered to the interests of consumers, they are more likely to see engagement.
Mobile games establishing a formidable presence
Consumers are expected to spend more money on mobile games than those on traditional handheld systems by the end of 2013, according to forecasts from the International Data Corporation (IDC). The research firm has tracked the sales of handheld games for some time, finding the market somewhat volatile and relatively devoid of consumer interest. Even Nintendo, which has long reigned in the realm of handheld gaming, has been seeing lackluster sales for its 3DS platform. Mobile games seem to be replacing traditional handheld gaming as smartphones and tablets become more technologically advanced.
IDC predicts decline in handheld sales through 2017
The IDC anticipates that sales for the Nintendo 3DS and the Sony PS Vita will fall by 7% year-on-year through 2017. Mobile games are expected to pick up the slack due to their rampant popularity and the widespread availability of free-to-play titles. The IDC notes that handheld games will still be able to produce higher levels of revenue, however, due to the fact that many mobile games are either free or available at a very low price. This advantage is considered modest due to the fact that most mobile games have in-app purchases and advertisements, which account for the majority of the revenue generated by these games.
Android expected to become ideal platform for mobile games
Android is considered to be the most promising platform in the mobile games sector, according to the IDC. The firm notes that the Android platform is somewhat fragmented, making it difficult for game developers to find traction through the platform the same way they can find success with the iOS platform. Nonetheless, Android has been growing to become more intuitive and accommodating to the gaming environment. So much so that the IDC expects Android to beat out all other platforms in the mobile games field in the near future.
Free-to-play model continues to grow
Free-to-play mobile games will likely be the key to dominance over handheld games. The IDC predicts that the game industry will become more adept in fashioning free-to-play business models that allow consumers to enjoy mobile games for free while also offering valuable services for a fee. Consumers remain somewhat dubious concerning in-app purchases, often called microtransactions, but the IDC anticipates that consumers will grow more accommodating as this business model becomes the norm for the game industry.
