Mobile Gaming Industry: Building Big Business From Small Devices
In 2007, Apple Inc. gave a new meaning to mobile technology by launching its flagship device: the first generation iPhone. The device acted as a boon to the mobile game development sector, which was otherwise growing with a “snail speed“. Later, in the year 2008, the Internet giant Google also launched “Android operating system“and this eventually started an app war, and both of them became fierce competitors. However, this turned out to be fruitful for smartphone users, as the competition resulted in the development of better mobile gaming apps with great graphics, games fascinating and excellent sound systems.
Statistics and Predictions –
Over time, companies brought advanced tools and technologies to develop more sophisticated gaming applications to appeal to a larger part of the mobile enthusiast population. According to recent statistics, in the year 2010, the sales of game applications for smartphones and tablets reached 898 million dollars, and it is expected to generate a revenue figure of 1.6 billion dollars by the year 2015.
The overwhelming response experienced by mobile gaming apps can be seen in the following facts:
- 53% of smartphone owners play mobile games on a daily basis.
- Smartphone users spend 14.7 hours a month playing mobile games
- 93% of people pay for gaming apps
- 100 million mobile gamers in the US alone
- 700 million downloads of the Angry Birds app
- Tiny Tower generated $3 million from in-app purchases
- The biggest revenue generation is through ads.
It is worth mentioning that the figures above show only a small glimpse of the entire mobile gaming industry. However, with the evolution of technology with each passing day, the popularity of mobile gaming is expected to break all previous records.
Freemium Model or Paid Model – The Game Changers
The task of selecting the right medium for income generation has always been a game changer. There are three main revenue models in the mobile app development industry:
- free apps – Apps were supported with ads to support revenue generation.
- Freemium Apps (Free + Premium) – Free apps to download, but with in-app purchase options.
- paid apps – Single payment for all features.
No doubt, the freemium model has proven itself many times over, but the main revenue generator still comes from paid gaming apps. In addition, expert predictions indicate that revenue from ad-supported free games is expected to grow by 12.3% by 2014. Thus, with free apps, the “spark – spark“, and free apps show better potential, the prospects of being innovative and effective are higher in the latter. As a result, a balance in revenue generation between paid and free apps can be felt in the coming years.
Word of mouth: the main reason for downloads
No matter what the medium, physical or virtual, “word of mouth” always serves as an efficient form of promotion. Even though companies are spending a lot to promote their gaming apps, statistics suggest that word-of-mouth advertising still ranks number one in effectiveness. According to a recent survey:
- About 50% of adults learn about new game apps from friends and family.
- About 40% of adults learn from app stores, after reading user reviews and favorites list.
- About 25% of adults learn from social networking sites.
However, there is also a long list of mobile gaming websites with a high influx of web traffic, present on the Internet offering game reviews, upcoming apps, tips and tricks. Therefore, companies should focus on using all kinds of efficient media channels to gain maximum coverage and ensure 100% promotion of their apps.
With mobile gaming apps available for free, it’s easy to fall in and get engrossed in them. Also, from the above statistics, one can easily feel the increasing popularity, the highest growth rate, and the potential in the mobile game development industry.
