As the industry is gaining market share from traditional consoles/handhelds, the business model is significantly altered in the following aspects.
Nintendo's consoles in the 1980s appealed primarily to children. Sony's PlayStation appealed to teenagers in the 90s, along with their little siblings. The PlayStation 2 and Xbox, by becoming home entertainment systems, appealed to young adults as well. And finally the Nintendo Wii and Microsoft's Kinect, by making games accessible to anybody, appealed to the whole family.
The Android Market has more free apps than the App Store and will soon overtake the App Store in sheer number of available apps.
as a result of higher developing due to fragmentation and Android users being less willing to pay than iOS users).
‘Simulated synchronous’ is the way further. These apps feel like you’re playing against another person in real time. It increases anxiety to choose quickly (be it songs, pictures etc) because you see their choices happen in real time. For example, Song Pop records the other person’s game and then plays it back against you as you play. So you see when and what they’ve chosen as you’re hurrying to make your own choice.
Like who wants to be a millionaireGame concepts that can potentially cash in on this are many, including number ordering (clicking on the numbers faster than the opponent), guessing-based games with categories such as guess the character, the city, the brand etc; with the basic architecture of the game resembling that of SongPop: simulated syncrhonous.Bear in mind that SongPop was first considered a copycat of Draw Something; actually just a better implementation of simulated synchronous
Sujay Tyle - LOGIN Conference 2012
Mobile Gaming Growth into the Future through 4 Trends Sujay Tyle VP of Business Development, Scopely
Industry growth Traditional MobileDevelopment Cycle Years MonthsRevenue Model Single Purchase Free-to-Play/ContinuousEngagement Days/Months YearsData and Analytics Limited Ongoing FeedbackDistribution Traditional Retail Network Virality
Industry trends responsible for growth – A widnening demographic – iOS and Android device and user growth – Improved monetization – New kinds of games • Simulated Synchronous • Luxury Goods within Mobile Apps
1. A widening demographicRight now In 201550% of social network users 75% of social network usersWomen aged 35-55 Women, young adults, heavy gamers- 54% of mobile gamers are female and 46% are male.- 79% of mobile gamers are more than 30 years old.- 43% of social gamers are college graduates, and 79% have some college experience.
Mobile Gaming User Growth• 800,000 new smartphones are activated every day: vast majority being Android phones• 46% of iOS apps are free, whereas 72% of Android apps are free.• 58% of most popular developers are creating multiple platform apps.
Current Monetization Statistics• Role-playing games and gambling games monetize the best, followed by hidden object, adventure and tournament-based games. The worst in terms of monetization are puzzle, arcade, caretaking and simulation games.• 50% of revenue from top grossing iPhone apps comes from in-game purchases.• For every dollar made for on iOS, developers only make 24 cents on the Android platform due to poor monetization
Monetization with Future Gaming• The mobile gaming industry is expected to grow at an average annual rate of 30% at least through 2014. This growth comes mainly from the sales of virtual goods, as the freemium model becomes more dominant.• In-game purchases should overtake pay-per- downloads by 2013.• Easier payment systems through Apple and Android should be expected
4. New Types of Games• Taking advantage of ppl’s offline interests through games
Inherently Social First• With the iconic rise in the number of smartphone activations, inherently social games will continue to dominate in-app monetization and retention• Wooga: consumers rational spenders who value functional consumables over decorations. Focus on making the gaming experience more social instead of incorporating things like user avatars
Simulated synchronous games• Feels like playing in real time – Actually other player’s moves have been pre- recorded and are played back as you make your move – Increases competitiveness, engagement – Makes gaming more social• Best implementation so far – SongPop
CA$HING IN• Many SongPop copycats will appear• Trivi.al Released in late June 2012 – 9,000 MAU• What went wrong? – Good idea – Bad implementation • Too specific • Too burdensome
Luxury Goods • There will always be a market for luxury goods and services for consumers • Lacks existence in any appstore right now • Gree and DeNA will attempt with their platforms, to create a suite of luxury in app goods for consumers to collect