Written By The mobile gaming industry has been a behemoth in the world of gaming for over a decade. It has grown rapidly and consistently, with millions of people around the world spending their time and money on mobile games. However, the industry is now facing a new challenge, as recent reports suggest that the mobile gaming market is set for a sharp decline for the first time in over 10 years.
According to a report by Newzoo, a market research company specializing in the gaming industry, the global mobile gaming market is expected to decline by 1.4% in 2021, from $77.2 billion in 2020 to $76.2 billion this year. This marks the first time the market has experienced a decline since 2009, when the industry was still in its infancy.
One of the major factors behind this decline is the COVID-19 pandemic. With people forced to stay at home and spend more time indoors, the demand for mobile gaming surged in 2020. However, as restrictions ease and people return to their pre-pandemic activities, the growth in the market is slowing down. In addition, the report suggests that the increasing popularity of other gaming platforms, such as consoles and PC gaming, is also contributing to the decline in the mobile gaming market.
The decline in the market is not uniform across all regions, however. While North America and Europe are expected to experience a decline in mobile gaming revenue in 2021, the Asia-Pacific region, particularly China and Southeast Asia, is expected to continue to grow. The report predicts that the Asia-Pacific region will account for 54% of the global mobile gaming market in 2021, with China alone contributing 31% of the total revenue.
Despite the decline in revenue, the mobile gaming industry is still a significant player in the gaming market. In fact, the report suggests that mobile gaming will remain the largest gaming segment in terms of revenue, accounting for 42% of the total global gaming revenue in 2021. In addition, the industry is expected to rebound in the coming years, with a projected growth of 4.4% in 2022 and 5.5% in 2023.
To adapt to the changing market, mobile game developers are exploring new avenues to attract and retain players. One approach is to focus on developing games that are more engaging and have a longer lifespan, rather than relying on the traditional “freemium” model of offering free games with in-app purchases. In addition, mobile game developers are also exploring new technologies such as augmented reality and virtual reality to create immersive experiences for players.
In conclusion, while the mobile gaming market is experiencing a decline for the first time in over 10 years, it is still a significant player in the gaming industry. The decline is largely attributed to the COVID-19 pandemic and the increasing popularity of other gaming platforms, but the industry is expected to rebound in the coming years. Mobile game developers are adapting to the changing market by focusing on creating more engaging and immersive experiences for players, and exploring new technologies to stay ahead of the competition.
