You've been redirected from MobilePaymentsToday.com to PaymentsDive.com. In March 2021, Mobile Payments Today became a part of Payments Dive. For the latest payments news, sign up for the daily newsletter.

Mobile gaming revenues to reach $28.9 billion by 2016

Published

June 18, 2014

Total revenues from mobile games will reach $28.9 billion by 2016, up some 38 percent from Juniper Research’s $20.9 billion estimate for 2014. Juniper’s new report about mobile gaming revealed that in an effort to maximize their apps’ potential, developers are turning their focus on increasing user lifetime value, according to a press release.

The report, Mobile & Handheld Games: Discover, Monetize, Advertise 2014–2019, found that with the domination of casual gamers playing free-to-play games, developers’ approach has shifted from bulk acquisition of unique players, according to a press release about the report. Under the new strategy, which brings mobile analytics to the fore, developers are increasing lifetime value through analyzing, reengaging and monetizing users, allowing for higher overall returns on investment.

The report found that tablet users will spend more on in-game purchases and generate more revenues per device than smartphone users. It argues that in turn, the enhanced performance and graphical capabilities of tablet games is resulting in accelerated migration from traditional portable gaming devices.

Juniper said in the press release it does not believe that increased gaming activity on smartphones and tablets will necessarily mark the end of this market. Rather, dedicated gameplay hardware will continue to serve a niche gaming audience. Meanwhile, software will embrace elements of mobile games as reflected by the introduction of PlayStation Now, which aims to let users play games through online streaming via a per-game or subscription basis.

Other findings from the report include:

  • Over the forecast period, the emphasis in interactive entertainment will be on convenience, accessibility, and online streaming.
  • Rising disposable income levels accompanying increased smartphone adoption will spur increased in-game purchasing revenues across Latin American, Eastern European and Southeast Asian regions.
  • With app stores remaining the primary content discovery locations, storefront optimization will be enhanced to personalize the discovery process.