Skip to main content

Mobile Games Market to Reach $3+ Billion by 2016

The gaming industry has changed dramatically over the past decade. A new study of the mobile games market has highlighted the pivotal role of media tablets in the future growth prospects of this fast moving and evolving industry.

The rapid adoption of tablets, combined with the growing acceptance of in-game purchasing and virtual currencies, will result in an estimated $3.03 billion of sales by 2016 -- reaching over ten times the $301 million figure calculated for 2012.

According to the latest assessment by Juniper Research, which studied the impact of mobile games on the wider video games industry, found that there had been a clear migration of users from dedicated portable gaming devices across to tablets, and to some extent, smartphones.

The freemium model, which is being embraced by many tablet users, cannot be implemented as easily on portable gaming devices, because games must be purchased upfront and the devices themselves often do not allow for a 3G or 4G cellular network connection.

Increasingly, game developers are using virtual currencies to monetize their handset or tablet software app, rather than offering in-game items or pay-per-download titles. This can increase user engagement with the game, as once the virtual currency is purchased, it can only be spent within that game.


Developers are now beginning to focus more on the continued engagement of their game, as they realize that creating a high-quality game is typically not enough to guarantee a return on investment.

"When we consider that only a small amount of gamers actually make in-game purchases, and those that do typically only spend a few dollars, it becomes apparent that there are a small proportion of consumers spending thousands annually on these virtual currencies, who subsidize the game for everyone else," said Siân Rowlands, analyst at Juniper Research.

Furthermore, it's now believed that free-to-play casino style games were beginning to see increased profits from in-app purchases, even though users are not playing for real money stakes.

Games such as Slotomania, Poker by Zynga and Texas Poker were seeing a sharp increase in the number of users buying chips and other in-game items -- in some instances spending as much as $100 in one transaction, to allow for a lengthy, uninterrupted gameplay session.

Other key findings from the market study include:
  • The majority of in-game purchase revenue on tablets will be made in the Far East & China and North America, which will account for over 86 percent of user spend in 2016.
  • Smartphones will remain the primary device which users make in-app purchases on, with more than $6 billion spent on them in 2016 -- that's over double the amount spent on tablets.

Popular posts from this blog

How Edge Computing and AI Applications Drive IoT

The global pandemic has accelerated the adoption of emerging technologies, including edge computing and TinyML. As more CIOs and CTOs seek ways to capture and process data at the edge of their enterprise IT network, the demand has fueled investment for Internet of Things (IoT) applications. According to the latest worldwide market study by ABI Research, the global edge Artificial Intelligence (AI), Software-as-a-Service (SaaS), and turnkey service market will grow at a CAGR of 46 percent between 2020 and 2025 to reach $7.2 billion. This is 25 percent of the global edge AI market, which is estimated to be $28 billion by 2025. The market is comprised of edge AI chipsets, SaaS, and turnkey services, as well as professional services. As the benefits of edge AI becomes more obvious, enterprises are searching for edge AI solutions that offer low latency and are fully secured to assist them with data-based analysis or decision-making. Edge Artificial Intelligence Market Development "The

How the COVID-19 Pandemic Advanced Telehealth Adoption

The global COVID-19 pandemic has accelerated digital transformation across many industries. As an example, consider the healthcare sector. Some routine medical situations can be diagnosed and resolved online. While the trend was already in motion long before the pandemic arrived, the adoption of telehealth increased rapidly in 2020. Around the world, many governments responded to the disruption and inaccessibility of healthcare facilities by loosening previous regulations and restrictions on the practice of telemedicine apps, and teleconsultations. This decision resulted in the mass adoption of these medical services among patients and providers. According to the latest market study by Juniper Research, telemedicine will save the healthcare industry $21 billion in costs by 2025 -- that's rising from an estimated $11 billion in 2021. This increased app usage represents an anticipated growth rate of over 80 percent in the next four years. Telehealth Services Market Development The co

Hyper-automation Propels Superior Business Process Redesign

When the world was disrupted by a global pandemic during 2020, many CEOs and their board of directors were consumed by reacting to immediate problems. Meanwhile, a few forwarding-thinking enterprise leaders also paused to invest in accelerating their prescient digital transformation agenda. What enables executives to envision an opportunity while others see only challenges? Strategic foresight, and a willingness to embrace the apparent changes that are transforming the legacy status quo. During this period of uncertainty, hyper-automation investment has gained new momentum. Hyperautomation is the application of advanced technologies that augment humans by helping to streamline processes in new ways that are significantly more impactful than the legacy approach. Hyperautomation Market Development The global market for technology that enables hyperautomation will reach $596.6 billion in 2022, according to the latest worldwide market study by Gartner. This is up from $481.6 billion in 202