LogInIn this pivotal Spring 2024 edition of "The Xsolla Report: The State of Play," Xsolla delves into the evolving dynamics and innovations shaping our industry, emphasizing the burgeoning realm of mobile gaming.
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Mobile gaming remains the fastest-growing segment in terms of user numbers in Europe, primarily driven by emerging and non-Tier 1 markets. While the growth rate is still positive, it's relatively lower than in the past, yet it leads to revenue growth.
A significant portion of the market revenue is dominated by the top 100 games, indicating a highly concentrated industry. This concentration mirrors the overall gaming industry, where a high-risk, high-reward dynamic prevails. Mobile gaming benefits from more extensive data availability, aiding in analyzing and understanding market trends.
Another trend is the casualization of mobile games, aiming to broaden the audience beyond traditional gamers. This shift is more pronounced in mobile gaming compared to PC and console gaming, where the focus has historically been on a core audience. Mobile gaming's casual approach is especially relevant in markets outside Tier 1, like India or Brazil, where mobile gaming is at an earlier stage of development.
The next trend is the increasing sophistication in user acquisition strategies within mobile gaming. The sector has developed best practices and tools for converting users into active players, reflecting a professionalization of user acquisition efforts. This trend, while more pronounced in mobile gaming, is also spreading to other gaming platforms.
Real-money games are a big hit in India. Casual games are also gaining a lot of popularity, with everyone from office workers to grandparents playing a variety of mobile games. However, when it comes to paying for games, players in India aren’t as keen to spend on gameplay, making free-to-play the most common type of game people play.
With the reluctance to make any game, or even in-game, purchases, game developers have historically had to get creative with ads and promotions to persuade players to buy. This trend has made monetization strategies vital for developers and their games to thrive. However, we are starting to see a shift with consumers increasingly spending more on apps like Netflix and Spotify, which could signify a more receptive sentiment toward game purchases in the near future. For example, games like Battlegrounds Mobile India and Free Fire, are highly popular among Indian gamers, which is an interesting indicator of increased mobile game spending.
Additionally, India’s gaming market skipped the console-era gaming that was popular in other regions which has shaped our market in unique ways, especially as consumers here get more into gaming and game spending. This makes it feel like we’re on the cusp of seeing games evolve from casual play to something more immersive and substantial – especially with gadgets like the Meta Quest 3 and Apple Vision Pro hitting the market.
Finally, developers are waking up to how crucial streamers are in building up a community around their games. It's all about collaboration now and building bridges between creators and the people who make the games we love. It looks like the future will be about getting deeper into the games we play and connecting more with the people who bring them to life.