Mobile game sales have become a huge portion of the video game industry and are set to become even bigger, Baird Equity Research’s Colin Sebastian said in a new report.
Some of the biggest publishers in the industry, including Electronic Arts and Activision, are starting to focus more seriously on mobile games.
Much of the industry’s potential is due to the fact that there are lots more mobile devices in use than PCs or game consoles.
The mobile games business is becoming a lot bigger than Clash of Clans, Crossy Road, and Candy Crush — and it’s offering a big opportunity for game publishers, distributors, and app store operators.
Mobile games already comprise a huge portion of the overall game business, and are growing steadily, Colin Sebastian, a financial analyst with Baird Equity Research, said in a new report. Some of the largest publishers are starting to bring some of their best-known games to mobile devices. And publishers are likely to get people playing longer and spending more money by incorporating features such as location tracking, augmented reality, and real-time multiplayer interactions, he said.
“As global smartphone and Internet penetration rates expand, we still see significant growth opportunities in mobile gaming,” Sebastian said.
Last year, the mobile games brought in $46 billion in revenue, he said, citing data from mobile market research company New Zoo. That represented about 42% of total video game industry revenue, he said. Mobile games are likely to continue to grow both overall and as a portion of overall industry sales, he said.
Meanwhile, in the US, Baird forecasts that mobile game sales will grow from $5.5 billion last year to $8.1 billion in 2021.
Mobile gaming has been dominated by a handful of free games, often from developers or publishers that primarily focus on smartphone games. But some of the biggest traditional game …read more
Source:: Business Insider