According to Band et al. (2016), mobile games are successfully competing with console and PC games in terms of revenue and market share. A report by De Prato et al. (2010) suggests that 80% of the revenue of mobile games is generated by 20% of game studios with average annual revenue per game being $40,000. There are some reasons for the contrast between PC, console and mobile games. De Prato et al. (2010) suggest that there are far more mobile games on the market than PC and console games. There are approximately 800,000 mobile games active at any time in different app stores. On the contrast, there are only 17,000 active PC and console games. Another report shows that the install base of mobile games is much larger than PC or console games. As of 2016, around 1.75 billion smartphone’s and tablets were used for mobile gaming (Band et al., 2016). In addition, the game modes are different from mobile game and the average revenue per user is lower. As far as the development of mobile games is concerned, it costs less than the developing a PC or a console game. A mobile game is created in mere weeks and at a less budget because the competition among the developers is always intense.
There are many other factors to determine the reasons for the rapid success of the mobile gaming industry.
Costs and funding: Another reason which led to the growth of mobile games was production costs. Mobile games were not only easy to distribute but also inexpensive to develop when compared to other forms of games. Hence, it led rapid success of the mobile gaming. Deterding et al. (2011) explains that mobile games depend on innovative mechanics or fun back stories as these are easier to code than detailed graphics. The development of mobile games, hence, requires small teams and low overhead. The mobile games represent an investment of only hundred thousand dollars when compared to console games. Therefore, the mobile gaming is a huge success. The change in funding patterns has also contributed to the growth of the mobile industry. The concept of crowdfunding has come into picture. Crowdfunding sources such as Kickstarter enable the likeminded people to donate small amount of money to the projects they feel interesting. Deterding et al. (2011) says that people who have creative suggestions but lacks fund can turn to crowd sourcing for help. Therefore, crowdfunding is also a boon for the mobile gaming industry.
Stagnation in traditional games: Another reason which has resulted to the rapid success of mobile gaming is the stagnation in traditional games. According to Elson et al. (2010), low development costs and available funding have helped in keeping the mobile industry fluid. The traditional games show difficulty in adaptation so mobile gaming remains a famous trend. As per a report on video game industry, it is written that a problem faced by console makers in rival devices’ faster refresh cycle. On the other hand, mobile devices get upgraded frequently due to the improved competencies of these devices. This contributes to innovation and new products but console makers face challenges when developing the games. The high cost of traditional games is a factor which limits its development.
These are some factors that have led to the success of mobile gaming industry in the recent time.
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