Revolutionizing Mobile Game Discovery: An Opportunity for Growth

The year 2024 has begun on a somber note for the gaming industry, with mass layoffs looming over major publishers like Epic and Riot Games, and the cost of developing and delivering groundbreaking games becoming increasingly prohibitive. Despite a promising growth outlook for mobile, with Data.ai predicting up to 4% year-over-year growth, the ongoing court proceedings between Epic and Google, as well as Apple's response to the Digital Markets Act, have cast a shadow over the industry's future. The atmosphere is marked by distrust and discord, with industry leaders like Tim Sweeney, Mark Zuckerberg, and Daniel Ek expressing strong opinions on the matter. Having spent over 25 years in the gaming industry, I recall a time when operators like Vodafone and T-Mobile controlled the mobile app landscape. However, with the launch of the iPhone in 2007 and the App Store in 2008, Apple and Google's platforms revolutionized the market, creating new opportunities for mobile game developers. The business model for mobile games changed significantly, thanks to flexible payment services and featuring possibilities, leading to the massive growth of free-to-play games in 2012. Looking back, it's clear that hit games like Angry Birds and Candy Crush owe their success to the app store business model. Nevertheless, the landscape has changed substantially since the App Store's launch. Today, developers invest heavily in marketing, and the role of featuring is no longer relevant, yet the fees remain the same. The current app store ecosystem, intense competition, and pressure on margins make it challenging for both established studios to scale and new games to break through. While Apple and Google drove significant growth in the gaming industry, it's evident that the industry has evolved and is in need of its next revolution. Rather than assigning blame, I'm interested in exploring what a new kind of app store or platform for mobile games could look like. To propel the industry forward, the focus should be on adding value to consumers and allowing new players to enter the ecosystem, rather than maximizing margins for walled gardens. This could involve introducing more diverse and flexible payment methods, particularly in emerging markets like Africa and Central Asia. Drawing inspiration from established entertainment categories like film and TV, I believe that content should be the primary focus. A curated storefront with distinct content strategies and exclusive content could be the key to competition and discovery in the mobile gaming industry. The question remains as to who will build and host these new storefronts – will it be Apple, Google, or new entrants like Epic or Netflix? Whatever the future holds, it's essential that these new models prioritize privacy, diverse payment opportunities, and content discovery. The mobile gaming industry is still in its youth, and there's significant growth potential waiting to be tapped. However, this will only happen if we make a concerted effort to drive the industry forward. This turning point in our industry is an opportunity for mobile game developers and platform owners to come together and create a better model – one that serves players, platform owners, developers, and industry growth.