Mobile Gaming Continues to Drive Growth in the Industry

According to a recent report from Data.ai and IRC, the mobile gaming industry is expected to generate $108 billion in consumer spending, surpassing both console and PC/Mac spending. However, this represents a slight decline from the previous year due to changes in ATT regulations and China’s restrictions on gaming among youth.

Regional Growth and Top Genres

In terms of growth, South Korea led the way in the Asia Pacific region, while Brazil, Turkey, and Mexico showed strong growth in the rest of the world. Simulation games experienced the highest download growth in the first half of 2023, with driving games and sports games also seeing an increase. Driving games specifically maintained their position as the fastest-growing genre.

Breakout Hits

Among the breakout hits in the mobile gaming industry is the release of Honkai: Star Rail, a team battle RPG. The game has amassed nearly 62 million downloads and over $457 million in consumer spending to date, attracting high-value players who make in-app purchases for premium in-game currency.

Tencent’s Honour of Kings emerged as the top-grossing mobile title in the first half of 2023, followed by Candy Crush Saga and Roblox. Honkai: Star Rail, despite its success, did not make it into the top ten due to its late release in April.

Dream Games’ Royal Match also performed well, ranking second in the match category for consumer spending. The game has generated $1.7 billion in revenue and has been downloaded almost 149 million times.

Advertising Update

The report also analyzed the advertising landscape in mobile gaming. Banner ads are losing favor among consumers, with around 36% expressing a dislike for them. In-game video ads remain prevalent but also received negative sentiment from around 42% of respondents. Rewarded video ads, on the other hand, proved to be the most popular ad format among American gamers.

While the mobile gaming market may have experienced volatility in 2022, it remains the driving force behind industry growth. Mobile gaming has provided a platform for greater accessibility and democratization of gaming, allowing a wide range of consumers to find games that appeal to them.

A separate report from Data.ai predicts that Japan’s mobile consumer spending will exceed $12.6 billion in 2023.