Paid mobile games to lose relevance - Mobile World Live

Paid mobile games to lose relevance

01 APR 2012

Between 2012 and 2015, the proportion of revenue from paid game downloads is forecast to shrink from 37 percent to 17 percent, while microtransactions and virtual goods will increase from 55 percent to 62 percent, according to market intelligence firm SuperData.

Over the same period, revenue from ad supported games and subscriptions are also expected to increase.

Global mobile gaming revenue will hit US$7.5 billion in 2015, three times the level it is today. Asia, which is currently the largest market, will account for US$3.2 billion of revenue by 2015.

The research founds that freemium titles now make up 55 percent of total revenue, but account for just six percent of ad revenue. Most users spend between US$8 and US$15 each month, and the proportion of free-to-play game users who convert to paying users is between 3.5 percent and 10 percent.

Mobile game revenue was US$2.7 billion in 2011 with iOS currently accounting for 50 percent of the total. Android accounted for 30 percent of revenue but is expected exceed Apple in future.

“The mobile gaming market is key to building a successful strategy. Only by capitalising on the early momentum can game companies establish a sustainable footprint for the long term,” said SuperData VP of Research, Janelle Benjamin.

Author

Tim Ferguson

Tim joined Mobile World Live in August 2011 and works across all channels, with a particular focus on apps. He came to the GSMA with five years of tech journalism experience, having started his career as a reporter... More

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