As the mobile gaming industry transitions into 2025, there is an air of cautious optimism amid ongoing challenges, according to a recent analysis published in Pocket Gamer.Biz. The prevailing mantra has shifted from “survive to 2025” to “thrive in 2025,” encapsulating a more hopeful outlook for the sector. With the mobile games market returning to growth in 2024 and significant fundraising activities, the landscape is poised for potential transformation.
Notable developments include over $140 million raised by investment funds such as Vgames and Play Ventures, alongside high-profile acquisitions like Miniclip's $1.2 billion purchase of Easybrain and MTG's $620 million acquisition of Plarium, the creator of Raid: Shadow Legends. However, industry experts express a mixed sentiment regarding the future, reflecting both apprehension and optimism. Vladimir Nikolsky, CEO of Utmost Games, anticipates further layoffs and studio closures, particularly impacting smaller studios and independent developers, while larger publishers are expected to fare better. In contrast, Kirill Gurskiy, Managing Director at GEM Capital, notes that the recent surge in mergers and acquisitions alongside increased venture activity signals a potential end to the industry's downturn.
Amid these dynamics, the report highlights several key trends that could shape the future of mobile gaming. One area garnering attention is the rise of HTML5 and web games, driven by platforms like WeChat Minigames and Telegram's gaming offerings. Trip Hawkins, a former EA CEO, noted that browser gaming presents a "great opportunity" for developers, which may become even more prominent in the approaching year.
Another critical subject is the impact of artificial intelligence (AI) on game development. Experts predict a significant shift in the industry as AI technologies become increasingly central to game ideation and design. The Vice President of Mobile Games at Kwalee estimates that by the end of the year, the first game with over 50% of its foundational content generated by AI will be released. Additionally, Peter Fodor, CEO of AppAgent, projects that technological advancements might enable companies to scale operations exponentially while reducing workforce requirements, consequently leading to job losses in existing roles.
Rewarded play is also emerging as a prominent trend within the mobile gaming landscape. With a growing number of players in this sector, such as Mistplay and Almedia, the long-term viability of the user acquisition (UA) model remains to be seen. A delicate balance must be struck between delivering genuine value and rewards to consumers while allowing publishers to derive a satisfactory return on investment.
As regulatory challenges loom, particularly for major platforms like Apple and Google, the European Commission's enforcement of the Digital Markets Act is under close scrutiny. The anticipated developments regarding this initiative are expected to significantly affect mobile ecosystem dynamics, particularly concerning third-party marketplaces and alternative payment methods.
Chinese publishers have also been highlighted for their increasing influence over the global gaming landscape, facilitated by significant mergers and acquisitions, in addition to the development of successful billion-dollar titles by companies like NetEase and Tencent. Observers note that this trend could reshape the competitive landscape, raising questions about the ability of Western publishers to maintain their foothold against these formidable entities.
In summary, as the mobile gaming industry approaches 2025, it faces a complex tapestry of challenges and opportunities. The integration of innovative technologies, changing market dynamics, and evolving regulatory landscapes will play pivotal roles in determining the future trajectory of the sector.
Source: Noah Wire Services