Gaming’s inexorable worldwide expansion is expected to reach record heights in 2023. According to a recent Newzoo report, mobile gaming will earn $91.4 billion in revenue in 2023, accounting for over 45% of the total Gaming Industry.
So, let’s take a look at the growth, challenges, and monetization of mobile games in 2023.
Gaming Industry Growth In 2023
Revenue growth in 2023 is totally consistent with the growing relevance of video games in people’s everyday lives, particularly among young people. According to Newzoo’s research, yearly growth will be more than 5% higher in 2021, totaling more than $200 billion. It estimates over half of Generation Alpha, Generation Z, and Millennial players spend money on video games.
Mobile gaming is expected to produce $91.4 billion in yearly revenue, accounting for about 45% of the $200 billion entire gaming industry. Mobile phone income already exceeds that of PCs and consoles combined, indicating the relentless rise of these devices as the primary gaming platform and the most established avenue for telecoms and videogame producers to increase their business.
In terms of revenue generation by region, Asia-Pacific remains the most profitable market, while Africa and Latin America saw the most tremendous year-on-year increase of 12.9% and 10%, respectively.
Issues In Mobile Gaming Industry In 2023
In 2023, the mobile gaming industry will confront many challenges, including
- Market competition and saturation: As mobile gaming has grown in popularity, the market has gotten more competitive. Thousands of mobile games are now accessible, making it more difficult for new games to stand out and get traction. Because of this saturation, the average income per game has decreased, making it harder for producers to earn a profit.
- Cheating and fraud: Cheating and fraud are not uncommon in mobile gaming. Hacking, botting, and using third-party software to obtain an unfair advantage are all examples of cheating. This can negatively influence the player experience and harm the game’s reputation.
- Lack of regulation and standards: Because the mobile gaming business is still in its infancy, it needs both regulation and standards. This can result in concerns such as player exploitation, a lack of transparency, and a lack of responsibility.
- Privacy and security: Mobile gaming requires users to disclose personal information with developers and publishers, such as their location and contact information. However, there have been instances where this information has been exploited or stolen, raising worries about privacy and security.
- Mobile game addiction: Some mobile games are highly engaging and addicting, which can result in bad outcomes for players, such as addiction, disregard of obligations, and mental health difficulties.
Monetization Throughout 2023
In 2023, the mobile game industry will continue to prioritize monetization via in-app purchases, subscriptions, and advertising. In-app purchases, such as the selling of virtual currency or objects, have remained a popular way for mobile games to monetize. Subscriptions to several mobile games provide players with access to exclusive content or perks.
Advertising has also been a significant source of revenue for mobile games, with many titles having in-game commercials or allowing players to view ads to gain in-game currency or things.
Throughout 2023, mobile game monetization has been effective, with the industry continuing to make significant profits using several monetization tactics.
Player Retention
Because mobile games can have a high player acquisition cost, player retention is critical to the game’s success. On the other hand, many mobile games have a high churn rate, so players quickly lose interest and quit playing. This might be due to a lack of substance, bad game design, or a lack of motivation to continue playing.
Final Thoughts
The stakes have been upped as the mobile gaming market matures and approaches saturation. As competition heats up and funds swell, the fundamental issue for mobile developers is: what makes you believe you can succeed? Let’s walk with the pace of technology.
Many changes happened in the mobile game development market between 2020 and 2021. As a result, gaming companies have increased their advertising spending to attract more users and get a necessary market share.
However, doing an early CTR (click-through rate) test is an excellent strategy to cut development costs. This is especially true in the mobile gaming industry’s hyper-casual game segment.