The Rise of Mobile Gaming: How Platforms are Evolving to Keep Up

The phenomenon: Game developers and mobile device manufacturers are amplifying efforts to seize the expanding mobile gaming sector by diversifying titles across more platforms and formats.

• Mobile gaming revenue constituted 49% of the worldwide gaming market this year, as reported by Newzoo, and the increasing presence of alternative app stores may enhance this figure in 2025.
• Streaming platforms are utilizing games to enhance user engagement, as mobile operators and console developers vie for on-the-move players.

Broadening the view: Consoles linked to PCs are no longer the standard for gaming equipment. According to Collage Group, 60% of Gen Z gamers and 64% of millennials engage in gameplay on mobile devices.

• 32% of Gen Z gamers and 26% of millennials use a Nintendo Switch, indicating there remains enthusiasm for portable gaming consoles. An anticipated Switch 2 launch in 2025 may aid Nintendo in competing with Valve’s popular Steam Deck.
• 13% of both Gen Zers and millennials game on alternative handheld devices.

The intersections: Platforms that traditionally had little connection to gaming are creating titles to increase user interaction.

YouTube, Netflix, Sling TV, and LinkedIn introduced games this year as part of efforts to boost revenue per user and enhance platform stickiness.

• However, developing and securing licenses for games is costly, and some firms have realized that high-budget titles are best left to specialized game publishers.
• Netflix shut down its AAA gaming division in October, likely due to expenses and lengthy production schedules.

Enhanced formats: As smartphone technology continues to advance, the mobile gaming experience becomes increasingly captivating.

• Recent smartphone releases from Apple, Samsung, and Asus this year showcase robust CPUs and high-resolution displays that are ideal for gaming and capable of handling more graphically demanding titles.
• This could motivate consumers to invest in premium mobile versions of AAA games that were previously exclusive to consoles.

Our perspective: As we approach 2025, the mobile gaming environment is likely to transform yet again. Devices will continue to gain power, enabling developers to explore the potential of mobile gaming without sacrificing quality.

We might observe more collaborations from streaming services and even social media platforms eager to capture a larger segment of the gaming audience. Nevertheless, these companies must concentrate on which games and experiences resonate with their users and what their brands are recognized for to prevent overspending.