The mobile gaming market has been enjoying a consistent growth for some time but now it seems things may have taken a dramatic turn and the market could have finally peaked. So has the market in the west actually hit its ceiling or is there still life in it yet?
The total revenue for 6 top public mobile game companies has seen a significant decrease and it appears that growth itself has slowed considerably with companies seeing just a mere 1% rise in the second quarter of 2015. And when compared to that of a 25% rise in the second quarter of 2014 and a massive 367% in 2013 it’s clear to see that there is a notable drop occurring.
But it’s not only the drop that is concerning some companies it is also the rising costs of the gaming business. Over the past couple of years there has been a dramatic increase in the cost of distribution which has meant that gaming companies are seeing their revenues decrease even further. This problem has also been heightened by the fact that the costs involved in actually getting a project off the ground, developed, distributed and available on most major platforms is becoming more and more expensive.
The budgets involved in developing new games where you can win real money for the mobile market are increasing. Not only are the labour costs rising due to talented developers and technology having to compete fiercely within the market but also the general production costs are beginning to grow. There is a plethora of operators that are now catering for the mobile market like the mobile boom at Royal Vegas and distributing and marketing your newest game is becoming a costly process for many companies involved in the mobile gaming industry.
This drop off is quite a common feature of the gaming world, as it is with many other similar industries. The introduction of new technology often has major success in its early days until it eventually reaches a saturation point. It’s at this stage that designers and developers look to evolve and tweak things in order to reach a wider audience and reinvigorate their products, games and apps to bring their customers back once more.
But with the mobile platform appearing to “saturate” much quicker than most competing markets it is certainly a concern for mobile companies and developers alike. So now is the time for mobile game companies to shift their focus and adopt new strategies to help beat this declining revenue stream and win back the attentions of mobile gamers out there.
