Mobile Games Trends and Business Opportunities

In less than 20 years, the video game industry has become one of the largest players in entertainment. In 2020, it generated about 160 billion US dollars in revenue.

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This makes the video game industry larger than the book industry, which is about $140 billion a year. It is also much bigger than the film industry.

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In the video game industry, mobile games make up nearly half of the revenue and usage. This industry is worth about $70 billion worldwide.

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The stakes of developing mobile games have therefore never been higher, with record levels of profitability. So why not embark on the adventure and develop your mobile game in Vietnam with Dirox?

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In this article, we will explore the trends in the mobile game market. We will look at its audience and the most popular types of games. We will also discuss different business models and ways to make money from games.

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Mobile Gaming Trends: A Fast-Growing Segment

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Numbers don’t lie, mobile game industry statistics are off the charts:

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Asia-Pacific is the largest and fastest-growing regional mobile game market.

In 2021, mobile gaming made about $85 billion in revenue. It is expected to reach $100 billion by 2023 (source: Newzoo).

By 2023, more than half of the gaming industry revenue will come from mobile gaming (source: Research and Market).

By 2025, 2.2 billion people will have downloaded a mobile game for their smartphone (source: Statista).

By 2025, 42% of the App Store’s revenue is projected to come from gaming apps (source: SensorTower).

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The mobile gaming industry is growing at an amazing rate, with no sign of slowing down.

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The Covid years helped this market grow. People stayed inside and played video games alone or online with friends. This allowed them to maintain some social connection.

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Let's emphasize that mobile gaming mainly drives the growing video game market. Spending on traditional gaming remains steady.

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Mobile Gaming Trends: Increasingly Powerful Games

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Nowadays, the technical capabilities of telephones allow the development of "AAA" titles of superior quality, approaching the graphics offered by certain consoles or PCs.

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‍Android phones offer a wide range of hardware options. Mobile game developers aim to ensure good compatibility across different phones.

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‍This is why games like Minecraft, FIFA, PUBG, The Sims, Genshin Impact, and Fortnite, which first launched on PC or consoles, are now hugely successful on mobile. This is called “Crossplay”. The biggest challenge of cross-platform development is optimizing your game for many different devices.

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‍Mobile phones now offer excellent gaming performance. They have improved graphics chipsets and new screens that display stunning resolutions. Batteries last longer and charge quickly, and fast 5G connections enhance the gaming experience

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‍PUBG Mobile is one of the most downloaded games, with 1.12 billion downloads. Many simpler mobile games also have hundreds of millions of downloads.

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Angry Birds 1 & 2: 5.000+ Million

Candy Crush Saga: 3.400+ Million

Fruit Ninja: 1.000+ Million

Clash of Clans: 570 Million

Among Us: 530 Million

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Mobile Gaming Trends: Most Popular Genres

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‍So-called “casual” games are the ones that most dominate the mobile games market. 

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‍They are the simplest games, featuring basic but extremely addictive mechanics. They are quick and easy ways to relax and have fun, which fits perfectly the philosophy of mobile phones. These casual games total the most downloads, as we saw earlier with the most downloaded mobile games.

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‍However, they are not the ones that necessarily generate the most revenue.

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‍The "core games," or AAA-type titles, may not be the most downloaded. However, they make the most money.

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As we can see, games like PUBG, Genshin Impact, or Roblox top the rankings of the most lucrative mobile games.

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Mobile Gaming Trends: AR/VR Gaming

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New augmented reality (AR) and virtual reality (VR) technologies are now part of mobile gaming. This trend is bringing in a lot of money. Developers work to make gaming environments more realistic and engaging. This is now possible with AR and VR technology.

With just a headset, users can immerse themselves in near-real environments, making the experience feel more authentic. This graph shows that the gaming industry is already gaining from AR/VR technology. You will keep benefiting from it in the future.

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Remember the Pokémon Go hype when it first came out? The new uses of AR and VR are changing the gaming industry. Pokémon Go is just the first step toward more immersive gaming experiences.

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Mobile Gaming Trends: Social Features

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Since their creation, all games involve an indisputable social factor: We play with or against another player.

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‍This is why all social features are must-haves for the majority of mobile games.

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‍To create a sense of community around a game, here is what you can plan for:

-      Guild system

-       In-game chats

-       Co-op modes

-       PvP modes

-      Social media features

-      Lobby systems

-      Streaming

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A video game, mobile or not, does not only encompass the time spent by the player “in-game”. The universe surrounding the game and the interactions you can have with other players are just as important.

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The time chatting or even watching games is indeed considerable.

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‍In the age of E-sport and Twitch, players also become spectators or commentators.

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‍This creates real communities, with people that share a passion that goes beyond a simple gaming session.

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‍So be sure to think carefully about social features when developing your mobile game!

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Business Models & Monetization of Mobile Games

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‍The mobile games market differs from the PC and console games market in terms of business models.

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‍For a non-mobile game, it's simple: the user buys the game (or extensions of the game), and that’s it.

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‍On mobile platforms, users tend to spend significantly less, largely because mobile games are less costly to develop. Additionally, many users access these games for free.

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‍Indeed, mobile users do not spend as much time per game session as on a PC or console. They are less likely to spend money on games they will only play sometimes. However, some mobile gamers play for several hours each day.

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As a result, companies in the mobile gaming industry use 4 distinct monetization models:

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1. In-app purchases

This business model is based on micro-transactions implemented directly in the game.

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This can involve buying virtual currency, resources, loots, or other items that can speed up the game, such as improving a character. In this case, the game designers fully integrate this logic into the progression of the game, to unconsciously push players to make purchases that will make their life easier, and prevent boring or repetitive grind sessions.

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This model is particularly suitable for games that have a real sense of progression, such as RPGs, adventure games, or games that offer PVP and where virtual purchases allow you to gain a competitive advantage.

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2. Ad-driven

Here, the principle is simple: advertisements generate revenue for the creator of the game.

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Several possibilities exist. One is displaying a small banner during gameplay, often at the bottom of the screen. While it doesn’t disrupt the experience, it may slightly reduce immersion by showing interstitial ads.

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Another option is to show short video ads at regular times in the game. For example, this could happen after finishing a level or to unlock rewards like virtual currency or extra lives.

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This model works well for games with short sessions, like puzzle or board gamesThe concept is simple: ads generate income for the game creator.

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Various options exist. One is displaying a small banner during gameplay, often at the bottom of the screen. While it doesn’t disrupt the experience, it may slightly reduce immersion by showing interstitial ads.

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Note that more and more console or PC games (even AAA) now use real brand advertisements in their games. For example, real brands can use virtual billboards in automobile or sports games, stadiums, or racetracks.

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Ad-based games may also offer to remove these ads through an in-game purchase.

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3. Subscription-based

Not unlike some MMORPGs, mobile games can use subscriptions as an economic model (sometimes called “pass”, “season pass”, "VIP access"). Instead of paying a large sum all at once, subscription models use smaller monthly payments.

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This monetization model is ideal for competitive games whose life is punctuated by PVP-type events, as users will want to have their subscription active during tournaments for example. Players expect regular updates and new content to explore in exchange for their subscription.

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4. Premium

The Premium model is like PC and console games. Users pay once for the game and get full access to all content. There are no extra payments or ads.

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This model is often used for AAA games or other big projects. These projects need a lot of money at the start. This money goes into game design, 3D modeling, and story development.

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Going Further

No matter which business model you choose for your game, you will need to consider many factors to ensure its long-term success.‍

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One of the most important metrics, especially when it comes to micro-transaction and ad-based models, is retention rate. This is the frequency of use of the application by the user.

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The goal is to get him to play your game as much as possible. To do this, create an engaging game. You can also encourage less active players with notifications, promotions, and free items.‍

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So, when developing a mobile game, it's not just about thinking about the strengths of any game, such as story, gameplay, graphics, and music... but also about generating a steady income to sustain the whole project in the long run.

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Are you ready to develop your own mobile game?

Contact Dirox and its developer's team in Vietnam!

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