In 2018, the mobile gaming revenue is expected to touch the $70 billion mark
With games like PUBG and Fortnite locking horns in the market, the spurt in mobile game users has taken an unprecedented jump. And the growth in mobile gamers is directly proportional to the mobile gaming revenue.
If we take the stats from a recent report from Newzoo into account, gaming is expected to take away a 76 percent share of the $92.1 billion mobile app revenue in 2018. With this lion’s share, gaming will heavily dominate the mobile industry landscape.
By this account, worldwide mobile gaming revenue will probably hit the $70 billion mark this year which will be fueled by three billion smartphone users. Furthermore, Newzoo estimates the number of smartphone users to reach 3.8 billion mark by 2021, and it will be well complemented by low-cost hardware and data plans. China remains the leader in the total number of smartphone devices with 783 million units, which is roughly 26.1% of global users.
So, with these stats, by 2021, the app revenue will take a jump of around $40 billion to reach $139 billion.
If we talk about the game revenue, from the current $42.5 billion, it may reach $106.4 billion in 2021.
China alone with 573 million mobile gamers will be generating more than $23 billion in revenue in 2018, which accounts for around 60 percent of China's total gaming revenue for 2018.
Moreover, the Newzoo report also states that about 13.7% of all Chinese mobile players are willing to shift on new hardware to give a boost to their gaming experience, which is about 7.6% in the US, and 2.9% in Europe.
The success of a game app is not limited to one or two factors; there are many things attached to the overall performance and retention of the app, especially when the total number of apps are hitting around 5 million.
Following are the factors that impact the app credibility and revenue generation in the market:
The game app monetization is the primary revenue source and has six fundamental models that offer a wide range of options to app monetization.
LTV or Lifetime Value is the total revenue that an app can generate from each player. When an app goes viral, there are thousands and millions of users, and thus, it makes sense to track the revenue expectation from each user.
This revenue generation happens over in-app purchases or through paid apps. All in all, with all the revenue models, a particular user can be tracked of his total investment into the app.
There should always be an element that should keep the user hooked to the app. In general, there are five reasons for a game app user to use it:
And if the game app is crafted on the basis of these factors, the chances are high that the app will excel. For instance, in a racing game app, the user tries to beat the opponent and hence the feel of accomplishment crops in.
The user experience of an app is another significant aspect that drives the mobile app monetization. If a user is impressed by an app, the chances are high that he will rate the app with positive reviews and in turn, these reviews can help many other users trust that gaming app and download it at first place, rather than jumping to some other app.
As per a study, an average mobile gamer spends about 24 minutes a day playing the game on his device and during this while, you can offer a rich experience to the user, and it will further help you with long-term revenue gain.
A game app is very much influenced by its genre, and that molds the final user acquisition. The more user base an app has, the better is the mobile app revenue. However, with the present market share of app revenue, the day is not far off when mobile apps will completely dominate the gaming industry.
For more information on the mobile apps or mobile app game development, you can comment below, and we will be pleased to help you out.
She is a content marketer and has more than five years of experience in IoT, blockchain, Web, and mobile development. In all these years, she closely followed the app development, and now she writes about the existing and the upcoming mobile app technologies. Her essence is more like a ballet dancer.