As children we were all used to playing games on the traditional consoles and handhelds such as the PlayStation, Xbox, and the Nintendo DS. However, in recent years Mobile gaming has started to become increasingly more popular. It is expected that revenues of mobile games will pass those of console and PC games this year. With expected revenues of 36.9, 31.9, and 29 billion dollars respectively. It is expected that Mobile games will continue to increase its overall market share in the upcoming years. With recent technological developments such as augmented reality (for example Pokemon Go), non-mobile game developers are bound to have a disadvantage over mobile games.
The business models of mobile games differ from those of console and pc games. Their “freemium” models allow players to play a limited version of the games for free. However, for enhanced features and additional content has to be paid. This model has proven to be a big success as it is attracts new users fairly easy with its free content. Console and PC game developers are starting to adopt this concept into their own business models. An example is the game “World of Tanks” which made it into the top five highest earning revenue games on PC in 2015 (814 billion dollar). Sony is also allowing developers to put their freemium games up for sale in the PSN store. Several triple A-gaming publishers (such as Konami) are shifting their attention from PC/ Console games to the mobile games industry as they see more potential in this platform.
Mobile gaming is also changing the demographics of gaming. 37 percent of the mobile gamers are above the age of 35 and 56 percent of the mobile gamers are female. Mobile grants easier access to games than consoles as they do not require the purchase of an expensive console or gaming PC.
With advancing technologies and changing business models, the gaming industry might be heading in a different direction. As of now, console and PC gaming might have entered its last dominant era. What do you think? Is this the start of the downfall of gaming as we used to know it?
sources:
www.cnbc.com/2016/04/22/mobile-game-revenue-to-pass-console-pc-for-first-time.html
http://www.cnbc.com/2015/03/05/who-plays-and-who-pays-for-mobile-gaming.html
http://www.cnbc.com/2016/01/26/digital-gaming-sales-hit-record-61-billion-in-2015-report.html
http://www.bloomberg.com/news/articles/2016-02-25/world-of-tanks-video-game-mints-a-new-billionaire-from-belarus
Thought Konami was the only publisher going mobile? Think again
Hey Ashwin, thank you for your interesting post on gaming. To answer your question lets have a look at Nintendo. The Japanese video-gaming firm’s hit title ‘Super Mario Bros’ started the era of living-room gaming. But recently Nintendo has failed to keep up with the rise of smartphone gaming. In September, at Apple’s launch event for the iPhone 7, Nintendo’s Shiregu Miyamoto, stole the show with the promise of ‘Super Mario Run’ the firm’s first ever Mario game for smartphones. The advent of ‘Super Mario Run’ represents a huge change for the company. Five years ago Satoru Iwata, Nintendo’s old CEO, warned that “Nintendo would cease to be Nintendo” if it went mobile (Engadget, 2016). Until now it has stayed at its business model whereby its Mario games could be played only on Nintendo hardware, enticing players to buy its new consoles as well as the latest hit game (The Economist, 2016). It is clear that Nintendo made the switch to smartphone gaming. Most of its target groups, young people and families, only play games on smartphones or tablets. I don’t think you can really say it is a downfall, it is just a different way of playing games. More and more ‘console’ companies will make this switch to attract young people. For the upcoming years console or pc gaming will still be there but these companies have to think of their future.
Sources:
https://www.engadget.com/2016/09/07/nintendo-loses-a-little-piece-of-its-identity-with-super-mario/
http://www.economist.com/news/business/21707949-giant-console-industry-has-lost-generation-gamers-smartphones-can-it-reclaim
Hi Ashwin,
Thanks for your post! Looking back to my own personal childhood, I can completely understand your way of thinking. Me and my friends were playing games on traditional consoles all day long, whereby the use of PlayStation and Xbox were our favourites. As you already stated, the mobile gaming has started to become increasingly more popular. I am really amazed by the hard numbers you mentioned in your post, I did not know that the mobile gaming industry was already that big.
In my opinion, the mobile industry is disrupting the games industry. But in a good way. Technological innovation and disruption can be a great thing for any industry. Mobile continues to be this huge disruptor. First of all, the mobile industry is overtaking console games globally. Playing games is a big business all over the world, and mobile is taking an increasingly larger part of it. Players are spending more time and money on mobile, with mobile game revenues projected to overtake console games as you already said. At this moment, consoles are still dominating the US market, while the mobile market is booming in Asia. By doing so, the makeup of the average gamer, in my opinion, is changing dramatically thanks so mobile. The audience is changing, and audience diversity is a good thing as it can open doors to reach scores of new players which create an entirely new game genre.
Additionally, tables ans smartphones now offer polished, top-quality portable gaming experiences without having to lug around a dedicated handheld (Vungle, 2015). This opens doors to a lot more potential players. You can play games with people around you sitting in the same subway. The big Clash of Clans Superbowl spot this year is another example of how mobile gaming is becoming part of the flow (Vungle, 2015).
In my opinion, the mobile industry is the new way for future innovation and bringing gaming into the lives of many new players across the globe. Maybe it is disrupting the gaming industry, but not in a bad way.
Hi Ashwin,
Nice post! I never would have imagined that mobile gaming was so immensely popular compared to console gaming! I am not a big (mobile) gamer myself, but I can imagine why mobile gaming became so popular. Gaming on your phone is easy accessible, free/very cheap, there’s a big variety of choice and you can play everywhere. However, I can’t imagine that mobile gaming will ever replace console gaming for traditional gamers since it’s a whole different experience to play games on a game console. Consoles simply have more superior graphics, battery life and general performance. I think the diehard gamers will always stick to traditional gaming. In my opinion, mobile gaming is a nice addition to the gaming world, but not a substitute for console gaming.
http://blog.comparemymobile.com/mobile-gaming-takeover/