Tag: newzoo

Mobile gaming brings in more money when games offer greater challenge

Analysts say that mobile gamers are looking for more than repetitive game play.

Although games like the “Candy Crush Saga” are still highly lucrative in the free-to-play mobile gaming industry, other games like “Clash of Clans” that provide gamers with a more challenging experience, are notably gaining greater popularity and becoming quite lucrative.

Supercell’s fortress defense game is currently in the lead over King Digital’s popular puzzle game.

Last year, Supercell’s “Clash of Clans” was battling neck and neck with King Digital’s “Candy Crush Saga”, to be the mobile game that would have grossed the most profits in 2013. However, so far, in 2014, “Clash of Clans” is proving to be the dominant of the two.

Analysts believe the style of game that appears to be the most successful is a good indication of which type mobile users are likely to spend money on in the future. According to the CEO of Super Data Research, Joost van Dreunen, “It’s starting to get to the point where, if nothing else, you have to have a little bit more of an enticing offering, a larger narrative and broader brand.”

The market for “Clash of Clans” and other “midcore” games like it is expanding. Many mobile gamers are looking for a mobile gaming experience that is more engaging than what causal games, such as “Candy Crush”, have to offer. This doesn’t mean that casual games will become less lucrative, but mobile developers are finding that the demand for titles that immerse users in game play are likely to boost engagement, which increases the probability of users spending more on the additional paid features that are offered for these free-to-play mobile games.Mobile Gaming - Clash of Clans

Midcore mobile games are highly lucrative in the mobile gaming industry.

Mobile games that fall into the midcore category are not as repetitious in terms of game play as puzzle games are, for example. Instead, they offer the user with more flexibility and options. For instance, they may have a storyline and characters that are customizable. In addition, it is not uncommon for role-playing and real-time strategy elements to be integrated into these games. In essence, they have certain features that immerse gamers in a similar way as “core” computer and console games do.

It is estimated by NewZoo, a video games market research firm, that of the $14.9 billion that the mobile market made in 2013, worldwide profits for midcore mobile gaming were responsible for $3.8 billion of this total. This is almost two times higher than the $2 billion in returns that was made in 2012 by these types of games.

Softbank invests in Finnish mobile games developer

Softbank continues showing strong interest in mobile games

Softbank, a Japanese telecommunications corporation, has invested some $1.53 billion in a mobile games developer based in Finland. Per the investment, Softbank now owns a 51% stake in Supercell, developer of popular games like Clash of Clans and Hay Day. Despite the success of its games, Supercell is still considered a small development studio, but the developer is growing quickly and has established a formidable presence in the mobile games space.

Supercell boasts of strong revenue in games sector

Supercell has surpassed Zynga in terms of market value. The developer is currently valued at $3 billion and the developer’s games produce estimated daily revenue of over $2.4 million. The majority of this revenue comes from in-game purchases on virtual items and digital currencies. The financial clout that Supercell represents demonstrates the economic promise that can be found in the mobile games sector. As mobile games continue to grow in popularity, large companies like Softbank are looking to establish a lead in the sector.

Mobile Gaming - Softbank takes over Finish mobile games developerGlobal game industry revenue expected to hit $86 billion by 2016

Market research firm Newzoo predicts that the global revenue produced by the game industry as a whole will reach $86.1 billion by 2016. The firm expects the mobile games sector to grow quickly over that time, accounting for approximately 30% of global gaming revenue. Mobile games currently represent 17% of the revenue produced within the game industry. Consumers have shown that they are willing to spend money on mobile games despite the fact that the majority of these games are free to play.

Softbank aims for the global stage with mobile games

Approximately 20% of the investment coming from Softbank will be funneled through the company’s own mobile games studio, GungHo Online Entertainment. Softbank has already established a formidable presence in the Asian game market through its subsidiaries, but the company is not turning its interests to the global stage. Softbank is well positioned to compete with other large companies, such as Electronic Arts, that have begun entering into the mobile games sector.