The gaming industry has changed drastically in recent years, with mobile games quickly becoming the most profitable sector in the industry. Despite criticism that mobile games meet the lowest common denominator, or perhaps because of these factors, mobile games now receive 60% of total consumer gaming spending, everything has been taken into account. That’s more than triple the revenue home game consoles are expected to bring in, or 320% to be precise.
With all of that said and now out of the way, it’s important to note that mobile games alone are expected to generate around $21.4 billion in revenue in the second quarter of 2022. It looks like the massive boom that this industry experienced a few years ago, which was boosted by the pandemic, continues to hold its own although many expected demand to decline as consumers returned to normal habits.
The wider reach of mobile games is a strong contributor to their rise due to the fact that it is the kind of thing that could potentially allow more people to enjoy games instead of this product being limited to a specific niche. The strongest dollar growth in revenue was recorded by MMORPGs, or massively multiplayer online role-playing games, which saw consumer spending approach the $400 million mark this quarter.
Multiplayer online battle arena games, or MOBAs for short, saw slightly lower revenue growth to around $360 million for the quarter. Despite that being the case, the percentage growth these games have seen in terms of consumer spending far exceeds that of any other gaming subgenre on the market. MOBA games have seen a massive 55% growth in consumer spending, which could lead to them becoming the top earners due to their higher growth rates than MMORPGs.
MMORPGs already have a large chunk of the market, so their growth rate is naturally going to be hampered by their current state of market saturation. Game subgenres that have not yet reached the same level of popularity will experience stronger growth rates, such as the Action RPG genre whose 30% growth rate exceeded the 20% growth rate seen by MMORPGs.
The total growth rate for mobile games is 30% since the last Q2 report released before the pandemic. Based on these trends, it is expected that the total revenue generated by gaming applications will exceed $136 billion before the end of the year. It appears that consumers have already adjusted to the new normal that took hold during the height of the pandemic, and their preferences are not looking to wane in the near future.
This seems to suggest that mobile gaming will increase the gap between itself and home gaming consoles when it comes to consumer spending and income. Their ease of access plays a role in this as consumers do not need to purchase a whole new device to be able to play these games since they can simply download them to their personal smartphones.
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