The lucrative Business Model of Mobile Gaming Industry [Case Study]

Pratyusha Srivastava Pratyusha Srivastava
May 10, 2021 5 min read
The lucrative Business Model of Mobile Gaming Industry [Case Study]

โ€ŒThe Mobile gaming industry has grown rapidly since last year, 2020. Developing a mobile game is much more accessible and requires less budget as compared to PC or console games.

According to statistics, the Mobile gaming industry has grown up to $50 billion. In fact, the revenue through gaming is much higher than those of Hollywood. Mobile gaming is beating the other platforms of gaming with its tremendous responses and revenue. Based on the revenue, the mobile gaming industry is reaching its peak in a very lucrative manner and growing rapidly.

โ€ŒThe business model for the mobile gaming industry is very crucial. However, the developers mainly concentrate on the experience of players and optimal authentication. Although managing monetization and experience of the players is quite a handy task and needs proper balancing.

Half of the revenue that comes to the mobile gaming industry is from China, Korea, Japan along with Europe and North America Contributing $6 billion to $7 billion, respectively.

Certain games cost up to $50,000 - $2 million, based on the level of detailing for the UX and great touchscreen experience for the players.

โ€Œโ€ŒMobile game developers mainly focus on some key features like direct or indirect revenue assortment, based on the game type.

Now Lets look at The lucrative Business Model of Mobile Gaming Industry

Mobile Gaming Popular Monetization Models: How to make money?
Mobile Gaming App Monetization: Variety of Revenue models
Democratization of Gaming
Assorted strategies for the monetization of the mobile game app
FAQ

โ€Œโ€ŒThe mobile gaming industry has risen and gained popularity through the increasing demands of mobile devices. It has grown significantly and mobile games are counted among the most prominent apps.

Besides, the mobile gaming industry plays a major role in the app revenue for Google Play Store as well as Apple iOS App Store. With each passing year, the mobile gaming industry is growing with its rapid speed.

โ€Œโ€ŒAs the global gaming market is aimed to reach up to $115 billion by the year, 2018 among which $50 billion of revenue came from the mobile gaming industry.

โ€Œโ€ŒThe question arises, How do they make money? Well, the answer to this question is, through game monetization. These industries tend to develop products that would bring considerable profit to the developers and owner of the copyright. Besides, several business models could bring a good amount of profit to the industry.


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Mobile Gaming App Monetization: Variety of Revenue models

โ€Œโ€ŒThe mobile gaming industry has a rich history around and it has grown remarkably. Tetris (prehistoric version) was the very first known mobile game. It was played on a Hagenuk MT-2000 mobile phone in 1994.

However, mobile gaming increased with the launch of Apple's app store by the year 2007. Several games were introduced which showed major progress for this industry. Games like Angry birds, 2009 and candy crush, 2012 were among the most popular games.

โ€Œโ€ŒNowadays, technology has increased so prominently that mobile gaming has been developed more realistic and with great abilities. Also, several other facilities such as live streaming, cross-device synchronisation got acquainted promptly. Several other factors that played in the development and growth of the gaming industry is the growth of social media among the people.

According to a 2018 report, games like candy crush saga and Fortnite earned more than a million dollars of revenue through iPhone alone.

Candy Crush Revenue
Candy Crush Revenue

โ€Œโ€ŒTherefore, mobile gaming was fell into two separate sub-categories,

  1. Free Mobile Games
  2. Paid Mobile Games

These monetization models got more developed and complex. The growth of the mobile gaming industry was significant and influenced several creators and developers to fold more profit through gaming.


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Democratization of Gaming

โ€Œโ€ŒFor Apple or Android users, there are approximately 800,000+ games to access. This could be calculated as the total mobile apps, 30-40% are games.

There is literally democratization of gameplay among the consumers and distribution among the creators. With the development of mobile devices, games are also being developed for a better experience of gameplay. Also, developers have provided several compelling apps together with the features of devices to gain a better service of the game.

โ€Œโ€ŒAccording to the facts, Mobile gaming participates in up to 75-90% of the revenue for iOS App Store and Google Play Store. While calculating gamers around the globe, there are billions of them. The Apple App Store and Google Play Store runs technically by the diversification of games.

Assorted strategies for the monetization of the mobile game app

โ€Œโ€ŒThere are several methods to monetize your mobile game app, that includes:

Freemium

  • Free to download and play,
  • Offers microtransactions, in-game purchasing and,
  • Examples- Candy Crush Soda Saga, Clash Royale and Fortnight Battle Royal

Microtransactions

Microtransactions
Microtransactions
  • Permit for additional virtual goods purchasing
  • Various in-game purchasing like increasing players power, cosmetics or speed up within the game and,
  • Examples- roleplaying game as player purchasing game.

Microtransaction is mainly for those devoted players who always search for more developed goods. In-game purchasing is usable otherwise. Microtransaction is a crucial step for mobile game apps and it needs to develop sincerely and promptly. Designing Microtransaction is very necessary to balance the competition among the players and make them feel needy for the purchasing to function in the game.

FAQ

How do microtransactions work?

A microtransaction is a business model where users can purchase virtual items for small amounts of money. Microtransactions often appear in free-to-play games.

How big is the mobile gaming industry?

In 2020, the mobile gaming content market in North America was worth an estimated 25.2 billion U.S. dollars.

What percentage of gamers are mobile gamers?

62% of people are mobile gamers and 78% of gamers are Android users.

Conclusion

With the rapid growth of the mobile gaming industry, it's no doubt that it would lead the gaming industry soon. During the pandemic, more people have become reliant on mobile devices for gaming. It is growing with great outcomes and revenue. The statistics for the mobile gaming industry has also shown great results up to $50 billion. Therefore, it's likely to say that the mobile gaming industry is rising to its peak with some advanced features in hand.

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