Weathering the Storm: Key Takeaways from the Mobile Gaming Market's Decline

The gaming industry, once considered recession-proof, faced a downturn in 2022. According to data.ai, the global video game industry's size decreased by 5% to $193 billion, with the mobile segment experiencing a 7% decline. This shift can be attributed to several factors, including changes in player spending behavior, increased competition from short video and streaming services, and the long-term effects of Apple's IDFA depreciation. As a result, both small and large studios have struggled to launch new games, with some opting to suspend new releases until the market improves. To better understand the market's trends, we analyzed the evolution of mobile market trends on a subgenre basis, using data.ai's taxonomy. Our model revealed that while some genres, such as RPG, Strategy, and Match, experienced significant declines, others like Action and Party games showed growth. Regional analysis also highlighted varying trends, with Western markets experiencing a 12% decline and emerging markets seeing a 5% increase. China, a significant player in the global mobile gaming market, saw a 19% increase in in-app revenue on iOS. Looking ahead to 2023, the market appears to have reached a plateau, with some genres showing signs of recovery. Party games, for example, have experienced over 60% growth, while Match games have recovered from their 2022 decline. However, the ongoing decline in RPG, Shooting, and Strategy games' revenue is preventing the market from returning to its growth trajectory. The investment environment has also become more cautious, with investors raising their expectations for companies and projects. Despite the challenges, the mobile gaming industry is poised for revival, with opportunities for talented developers to create innovative and engaging games. Ultimately, the key to success lies in delivering fun gameplay and an exciting gaming experience that keeps players coming back.