A new report by Insider Intelligence and eMarketer examines America’s gaming industry, and mobile’s place in it.
Mobile undoubtedly dominates in terms of total users, with nearly two smartphone game players for every console, PC, or tablet player. However, the average US adult plays mobile games for just 24.4 minutes a day - 40.2% of the total time spent playing games.
The report found that mobile games are less reliant on advertising for monetisation than they have been historically.
Developers are moving away from hypercasual gaming and the related ad-based monetisation, and instead implementing higher production values more frequently. Big budget mobile titles, especially those which require an up-front payment, often utilise other forms of monetisation, and the companies note that more and more games are introducing options such as subscriptions, game currency, and premium content.
The report estimates that mobile games will generate $20 billion from in-app purchases in the USA alone in 2023. As such, it appears that IAP’s are key drivers in the success of mobile as a gaming platform, with mobile gaming generating half of all gaming revenues in 2022.
Despite this, mobile gaming remains an “ad juggernaut”, with Data.ai estimating that gaming apps are responsible for around 70% of all ad revenue from mobile ad networks. It also remains the undisputed leader in terms of in-game advertising, which other platforms have been slow to adopt, even in free-to-play titles.
Other platforms are learning from mobile
Part of mobile’s dominance over the gaming market comes from its accessibility, and free-to-play games perhaps epitomise this element. Whereas gamers on other platforms can expect to spend upwards of $70 for the latest release, free-to-play games are instantly accessible for anyone with the right device regardless of budget. With more and more free-to-play games coming to other platforms, Microsoft and Sony are separately working on ad platforms for their consoles, allowing them to bring more free-to-play games on board without losing monetisation potential.
Additionally, more and more games are coming to multiple platforms, giving players the chance to play whichever game they want regardless of platform, and more and more gamers are taking advantage of this. The report notes that 72% of console and PC players play games on multiple platforms, and highlights the rise of platforms including gaming elements such as connected TV, VR headsets, and even cars.
Earlier this week, Azerion and Moonlander announced a new partnership for cross-platform development.
