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Mobile dominates total gamers in America

The report highlights the dominant position of mobile in the gaming industry, with a large user base and significant revenue generation. While mobile games have historically relied on advertising for monetization, developers are now shifting away from hypercasual gaming and focusing on higher production values. This shift has led to the introduction of alternative monetization methods such as subscriptions, in-game currency, and premium content. In-app purchases (IAPs) have emerged as key drivers of success, with mobile games estimated to generate $20 billion from IAPs in the USA alone in 2023.

Despite the decreasing reliance on advertising, mobile gaming remains a significant platform for ads, responsible for approximately 70% of ad revenue from mobile ad networks. It continues to lead in in-game advertising, with other platforms lagging, even in free-to-play titles. However, other platforms are learning from the success of mobile gaming. Microsoft and Sony are developing ad platforms for their consoles to accommodate more free-to-play games and maintain monetization opportunities. The increasing availability of free-to-play games on various platforms, including consoles, enhances accessibility for gamers across different budgets.

Moreover, the rise of cross-platform gaming is a notable trend. Players now have the flexibility to enjoy games on multiple platforms, irrespective of the specific platform they own. The report highlights that 72% of console and PC players engage with games on multiple platforms. This trend is further supported by integrating gaming elements into platforms such as connected TVs, VR headsets, and even cars. The partnership between Azerion and Moonlander for cross-platform development exemplifies the industry's recognition of this trend.

Overall, the gaming industry is evolving, with mobile gaming leading in terms of user base and revenue generation. While mobile games are diversifying their monetization strategies, advertising continues to play a significant role. Other platforms are adopting lessons from mobile and working towards accommodating free-to-play games and embracing cross-platform gaming to meet the evolving preferences of gamers.

Source: Lewis Rees Staff Writer at PocketGamer

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