For over a decade, the mobile gaming industry has been on a steady rise, showing no signs of slowing down. But as the industry evolves and competition stiffens, it seems the golden era of mobile gaming is coming to an end. According to a report by Newzoo, the global mobile gaming market is expected to decline in 2021 for the first time in over a decade.
The report shows that the mobile gaming market will shrink by 1.1% year-on-year, bringing the total revenue to $90.7 billion. This may not seem like a significant drop, but it is a stark contrast to the double-digit growth the industry has seen in previous years. The decline is attributed to various factors, including market saturation, the COVID-19 pandemic, and the rise of alternative platforms such as cloud gaming.
One of the main reasons for the decline in the mobile gaming market is the saturation of the industry. With so many mobile games available to consumers, it is becoming increasingly challenging for developers to stand out and attract new players. In addition, many players are reaching their limit for how much they are willing to spend on in-game purchases, leading to a slowdown in revenue growth.
The COVID-19 pandemic also had a significant impact on the mobile gaming industry. While the pandemic initially led to a surge in mobile gaming revenue as people turned to gaming for entertainment during lockdowns, the report suggests that this growth was not sustainable in the long term. As the world begins to reopen, people are returning to their pre-pandemic activities and spending less time playing mobile games.
Another factor contributing to the decline is the rise of alternative gaming platforms such as cloud gaming. With the advent of cloud gaming services like Google Stadia and Microsoft xCloud, players no longer need to rely on mobile devices to play their favorite games. This shift is particularly relevant for hardcore gamers who prefer the high-quality graphics and processing power of consoles and PCs over mobile devices.
Despite these challenges, the mobile gaming industry is still expected to remain a significant player in the gaming industry. Mobile gaming will continue to attract a broad audience, including casual players and those who prefer playing games on the go. The industry will also benefit from the ongoing trend of cross-platform play, which allows players to seamlessly switch between different devices and platforms.
Overall, while the mobile gaming market may be shrinking, it is not the end of the road for the industry. Developers will need to adapt to the changing market and find new ways to engage players and stand out in a crowded marketplace. And as the gaming industry continues to evolve, it’s likely that new opportunities will emerge for mobile gaming to regain its footing and continue to grow in the years to come.
