Tag: mobile gaming

Mobile game revenue may soon outpace that seen in console gaming

Mobile games is a booming market. Many large developers and publishers have begun to focus on the mobile space, looking to take advantage of the growing number of mobile consumers willing to play and pay for games on their smartphones and tablets. In Canada, many consumers are beginning to play mobile games and the market is expected to see significant growth in the coming years, even outpacing the growth of the console gaming market.

Developers are beginning to see the value in mobile games

According to a new report from the Entertainment Software Association of Canada, the revenue generated by mobile games may soon outpace the sale of console games. Mobile games typically feature in-game purchases. These purchases can be anything from additional content to special items that provide some advantage in the game. While developers have been looking to bring these types of purchases to console games, they have already become well established in mobile gaming. Consumers have shown that they are quite willing to pay for content and other benefits in mobile games.

Report shows that mobile game revenue is growing quickly

According to the report from the Entertainment Software Association of Canada, console games remain the bulk of the overall gaming market. These games account for 35% of all revenue that Canadian developers are seeing. Mobile games, however, are growing quickly and now account for 31% of all revenue that developers see in the country. Notably, mobile games have continued growing, whereas console games have seen a 32% decline since 2013.

Developers are looking to enter the mobile space and engage consumers

With mobile gaming picking up momentum, more developers are beginning to show more interest in the mobile sector. Recently, acclaimed developer Konami decided that it will be focusing on mobile gaming. Activision Blizzard is also looking to become more involved in the mobile space, recently purchasing mobile game developer King for nearly $6 billion. Developers are looking to engage mobile consumers more effectively, as these consumers have shown that they are willing to pay for the mobile games that they play.

The company has reported that it has experienced a net profit increase of 32 percent during Q3.

Tencent Holdings Ltd has released its third quarter data and within it was a report that mobile games were a considerable driver of the 32 percent increase in net profits that occurred during that span of three months.

The reason these specific mobile apps received this credit is because of the growth and advertising they showed.

This underscored the resilience of Tencent despite the fact that the economy in its home country, China, has been slowing down. The powerful results played an integral role in assuaging some of the worries that had been expressed about the ever rising competition within the mobile games marketplace in the country. A spike in advertising revenue during that same quarter also looked promising to investors who were looking directly at mobile ads as an area in which Tencent had room for growth into the future.

More than half of the revenue that Tencent managed to bring in during Q3 was from mobile games.

Tencent is the largest social network in China as well as its biggest online games company. From the three months that closed on September 30, the net profit increased by $1.17 billion from having increased by $888.89 million during the same quarter the year before. Revenue for that quarter increased by 34 percent to 4.18 billion.

That occurred even though economic growth as a whole has been slowing down. Earlier in November, Chinese President Xi Jinping cautioned that the economy in the country was facing both global and domestic uncertainty. The president indicated that Beijing was able to withstand growth that was as low as 6.5 percent.

According to analysts, the economic fluctuations don’t usually cause too much of an impact on the demand by online gamers. Since Tencent has placed a considerable focus on mobile games, it means that it has become a company that is not as vulnerable to the directions of the economy as its competition. Tencent explained that the smartphone game app revenue it earned was $832.34 million, which was 60 percent higher than it had been in 2014. It was also 11 percent higher than it was during the second quarter.