Mobile Gaming Industry – Generating Big Business From Small Devices

In the year 2007, Apple Inc. gave a whole new meaning to mobile technology by launching its flagship device – the first-generation iPhone. The device acted as a boon for a mobile game development sector, which was otherwise growing with a “snail’s speed“. Later, in the year 2008, the Internet giant Google also released “Android OS” and this eventually started a war of apps, and both became fierce competitors. However, this proved fruitful for the smartphone users, as the competition resulted in the development of better mobile gaming apps with excellent graphics, fascinating game play and superb sound systems.

The Statistics and Predictions

With the pace of time, companies brought advance tools and technologies to develop more sophisticated gaming apps, to allure a bigger chunk of mobile enthusiastic population. As per recent statistics, in the year 2010, the smartphone and tablet gaming app sales reached $898 million, and it is expected to generate a revenue figure of $1.6 billion by the year 2015.

The overwhelming response experienced by the mobile gaming apps can be seen by the following facts –

  • 53% of smartphone owners play mobile games on daily basis
  • Smartphone users spend 14.7 hrs per month, playing mobile games
  • 93% people pay for gaming apps
  • 100 million mobile gamers in U.S. alone
  • 700 million download of Angry Birds app
  • Tiny tower generated $3 million from in-app purchase
  • Major revenue generation is via advertisements

It is worth mentioning that the above figures show only a small insight of the entire mobile gaming industry. However, with the technology evolving with each passing day, the popularity of mobile games is expected to break all the previous records.

Freemium Model or Paid Model – The Game Changers

The task of selecting the right medium for revenue generation has always been a game changer. There are three main revenue models in the mobile application development industry:

  • Free Apps – The apps were supported with advertisements, to support revenue generation.
  • Freemium (Free + Premium) Apps – Free to download apps, but with in-app purchase options.
  • Paid Apps – One-time payment for all the features.

No doubt, the freemium model has proven fruitful many times, but the major revenue generation is still carried by paid game apps. In addition, the predictions by experts state that, the revenue from free, ad-supported games is expected to grow by 12.3%, by the year 2014. Therefore, with free applications missing the “Spark“, and freemium apps showing better potential, the prospects of being innovative and effective are higher in the latter. As a result, one can sense a balance in revenue generation between paid and freemium apps in coming years.

Word of Mouth – The Main Reason Of Downloads

No matter whatever the medium is, physical or virtual, the “word of mouth” always serves as an efficient way of promotion. Even as the companies are spending heavy to promote their gaming apps, the statistics suggest that “word of mouth” medium of publicity still holds the number-one position in effectiveness. As per a recent survey:

  • Around 50% of adults learn about new gaming apps from friends and family.
  • About 40% of adults learn from app stores, after reading the user reviews and hot list.
  • About 25% of adults learn from social media sites.

However, there is also a long list of mobile gaming websites with a heavy influx of web traffic, present over the Internet that provides game reviews, upcoming apps, cheats and tips. So, companies should concentrate on utilizing all types of efficient media channels to acquire maximum coverage and ensure 100% promotion of their apps.

With mobile gaming apps available for free to play, it is easy to fall-in and get absorbed in them. Furthermore, from above statistics one can easily sense the increasing popularity, the higher growth rate and the potential in Mobile Game Development Industry.

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