Understanding the Mobile Game Industry

Have you ever wondered how much money the average mobile game makes? The mobile gaming industry has seen exponential growth over the past decade, with millions of players worldwide. In this article, we will delve into the various aspects of the mobile game industry to provide you with a comprehensive understanding of the average revenue generated by mobile games.

Market Size and Growth

The mobile gaming market has been on a steady rise, with a projected revenue of $100 billion by 2023. This growth can be attributed to the increasing number of smartphone users and the widespread availability of high-quality mobile devices. According to Statista, the global mobile gaming market was valued at $74.6 billion in 2020, with a compound annual growth rate (CAGR) of 11.1% from 2018 to 2023.

Revenue Streams

Mobile games generate revenue through various channels, including in-app purchases, subscriptions, and advertisements. Let’s take a closer look at each of these revenue streams.

In-App Purchases

In-app purchases are one of the most common revenue models for mobile games. Players can buy virtual goods, such as skins, characters, or power-ups, within the game. According to Sensor Tower, in-app purchases accounted for 85% of global mobile gaming revenue in 2020. The average revenue per user (ARPU) for in-app purchases is around $5.50, but this can vary significantly depending on the game and its target audience.

Subscriptions

Subscription-based models have gained popularity in recent years, particularly for games with a strong narrative or social component. Players pay a monthly or annual fee to access the game’s content and features. According to a report by Newzoo, subscription-based mobile games generated $1.5 billion in revenue in 2020, with an ARPU of $5.50. This revenue stream is expected to grow as more developers adopt this model.

Ad Revenue

Ad revenue is another significant source of income for mobile games. Developers can integrate various ad formats, such as banners, interstitials, and rewarded video ads, into their games. According to a report by App Annie, ad revenue accounted for 15% of global mobile gaming revenue in 2020. The average revenue per ad impression (ARPI) is around $0.10, but this can vary depending on the ad format and the game’s audience.

Game Categories and Revenue

The mobile gaming industry is diverse, with various game categories, each with its own revenue potential. Let’s explore some of the most popular game categories and their average revenue.

Casual Games

Casual games are easy to learn and play, making them a favorite among mobile gamers. According to Sensor Tower, casual games generated $25.5 billion in revenue in 2020, with an ARPU of $3.50. This category includes games like Candy Crush Saga and Angry Birds.

Midcore Games

Midcore games offer more complex gameplay and deeper engagement than casual games. They often feature a mix of strategy, role-playing, and simulation elements. According to a report by Newzoo, midcore games generated $15.5 billion in revenue in 2020, with an ARPU of $7.50. Examples of midcore games include Clash of Clans and Brawl Stars.

Core Games

Core games are designed for players who seek a more immersive and challenging gaming experience. These games often require a significant time investment and can be quite expensive to develop. According to a report by App Annie, core games generated $14.5 billion in revenue in 2020, with an ARPU of $15.50. Examples of core games include Genshin Impact and Call of Duty: Mobile.

Conclusion

Understanding how much money the average mobile game makes requires considering various factors, including the game’s category, revenue model, and target audience. While the average revenue per user can vary significantly, it’s clear that the mobile gaming industry is a highly profitable sector. As the market continues to grow, developers will need to stay innovative and adapt to changing player preferences to maximize their revenue potential.