Mobile Game Revenue Hits $57 Per Player and Continues to Climb
Image Credit: Freepik
“Do you guys not have phones?”
Mobile gaming continues to grow at a fast pace with numbers that are hard to ignore. With an average of $57 revenue per user according to the Mobile Games Statistics: Market & Revenue Report, mobile games are proving to be a financial goldmine, demonstrating why developers increasingly prefer to focus on mobile platforms over traditional PC or console games that often take more effort. This number is up from $47 in 2017 and expected to reach $64 by 2027, a staggering 36.17% growth within a single decade. Despite some strong opinions on the subject, the simple fact of the matter is that mobile games not only reach more players in a day and age where most people do have a smart phone, but they also generate significant revenue and return on investment for stakeholders.
Players are not just downloading games—they’re very clearly spending on them too. From in-game purchases, cosmetic upgrades, to battle passes, mobile games are designed to encourage continuous spending, especially in “free-to-play” models which have been shown to actually bring in more money than their pay-up-front-for-the-whole-game counterparts.
This high per-player revenue seems to be driven by several factors:
Most successful mobile games incorporate microtransactions that allow players to purchase things for real money. From purchasing cosmetic skins to getting experience boosts or premium items, these seemingly small transactions can add up rather quickly.
Many games are now offering subscription services, like "season passes," which provide ongoing content for a regular fee, adding to the overall revenue.
Even players who do not spend money on in-app purchases still contribute to game revenues through ad-based monetization (e.g. watch a video to progress, banners that pop up, and so forth).
Mobile gaming obviously enjoys the widest possible audience. As previously illuded to, almost everyone has a smartphone, and mobile games are accessible to billions of users worldwide. Compared to console and PC gaming, which require dedicated hardware that can cost hundreds if not thousands of dollars, mobile games are available in the hands of users at any time, often for free up front. The sheer volume of players boosts a game’s potential for revenue. Games like Genshin Impact and Clash Royale demonstrate that even a player who spends just a few dollars on in-app purchases can significantly contribute to a game’s financial success when millions of users are involved.
Another big thing going for mobile gaming is that, unlike console games that demand expensive hardware or high-end gaming PCs, mobile games are accessible to a broader audience with much lower entry costs both in terms of hardware and skill levels. This accessibility encourages impulse spending, as players are often drawn into mobile gaming's ecosystem without the same up-front investment as other platforms. A downside worth mentioning when it comes to this is that those who play only mobile games may be less knowledgeable about predatory monetization models and, therefore, more likely to spend as well.
Developing a mobile game is often less resource-intensive and time consuming than a AAA console or PC game. Additionally, updates and patches can be rolled out more frequently, keeping the game fresh and players engaged, especially if developers don’t have a to worry about cross-platform updates and can focus all of their attention to the mobile platform. Because mobile games thrive on consistent updates, events, and new content, this encourages long-term engagement and that players remain invested over time.
The $57 per player average is only expected to increase as the mobile market continues to grow, with India leading the way, having 9.3 billion downloads in 2023 (the USA only having 2.3 billion in comparison). With trends like cloud gaming and more affordable mobile hardware, we may see even more AAA-quality titles on mobile platforms. As developers find new ways to integrate augmented reality (AR), personalized gaming experiences through the use of AI, and continue to innovate with features unique to mobile, player engagement and revenue potential will only grow.
Image Credit: Blizzard Entertainment
For developers and game publishers alike, mobile gaming represents an incredible opportunity. The combination of low production costs, a massive player base, and the ability to drive consistent revenue through microtransactions, ads, and subscriptions makes it a clear winner in today’s gaming landscape. Even if the games take a hit in quality, it doesn’t necessarily matter as much if they can get a lot of users to spend some money on the game, or “whales” (a small group of players who spend a lot of money) to make consistent purchases.
Mobile gaming is not just the future; it’s the present. With average player revenue climbing, it’s no wonder more developers are choosing to go mobile regardless of controversy (shoutout to Blizzard’s Diablo Immortal). As long as the current trends hold, we can expect mobile games to continue shaping how developers approach game design and monetization strategies.
You can read the entire Udonis Mobile Games Statistics: Market & Revenue Report [2024] here.
