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Mobile gaming has grown into a thriving industry with vast potential, but it’s not without its challenges. Xsolla, a payment and distribution platform for video games, has released a comprehensive report that dives into the current state of the mobile gaming industry. The findings highlight key trends, challenges, and opportunities that game developers, advertisers, and industry professionals should be keenly aware of.
One of the most noteworthy takeaways from the report is the state of mobile ad spending. While mobile gaming stands as the world’s most profitable gaming platform, its growth is slowing. In 2023, global mobile ad spending is projected to reach $362 billion, marking the sixth consecutive year of growth. However, this growth is decelerating, with a projected year-on-year growth rate of 7.4%, a significant drop from the 26.3% growth observed in the pandemic-impacted year of 2020.
The report acknowledges that China remains the frontrunner in the mobile gaming arena. Adjust’s 2023 Mobile Market Report estimated a user spend of $42.4 billion. The United States, Japan, South Korea, and Germany follow as the top mobile gaming markets.
Hypercasual games, historically reliant on in-app advertising, have witnessed a decline in popularity as the monetization landscape shifts towards in-app purchases. In contrast, hybrid and casual games have surged, both in terms of sales and downloads. The report highlights that in-app purchases, while still substantial, have also waned in popularity, leading to reduced profits.
The report foresees even more stringent privacy regulations in the future, with Apple and Google possibly introducing new restrictions on data collection and storage. This means developers must swiftly adapt to evolving rules and compliance requirements.
Despite these challenges, the long-term outlook for the mobile gaming industry is positive. According to a recent report, in 2023, mobile games are set to claim over half (56%) of global gaming expenditures.
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