By the end of the year, the global gaming market is projected to be worth $152 billion. Out this, 45%, approximately $68.5 billion, comes from mobile games.
With this incredible growth, there has been an outbreak of investments and acquisitions, where everyone wants a piece of the pie.
What’s more, over the last 18 months, the global gaming industry has seen investments worth $9.6 billion. If it continues at this speed, the total amount of investments made in the year 2018-19 will be much higher than the previous eight years combined.
The Gaming Phenomenon
As of today, mobile games account for 33% of all app downloads, 74% of revenue spent by the consumer and 10% of all time spent on apps.
It is estimated that by the end of 2019, 2.4 billion users will be playing mobile games all around the world, which is almost one-third of the global population.
In the U.S., the time spent on mobile games has also formally outdone that of television. Today, users are spending eight more minutes per day on their mobile devices as compared to their TV.
Games On Games
The first-ever considerable investment in mobile gaming came from those investors who already had a share in the industry.
Some examples are:
- Tencent invested $90 million in Pocket Gems and $126 million in Glu Mobile for a 14.6% share
- Gaming powerhouse Supercell invested $5 million in mobile game studio Redemption Games
- Boom Fantasy raised $2M million from ESPN and the MLB
- Gamelynx raised $1.2 million from many investors, one of them was Riot Games
- Ubisoft gained a 70% share in Green Panda Games to boost its foot in the hyper-casual gaming market
Wall Street wakes up
Beyond the outbreak of investments and purchases within the game industry, there are many games that are also producing massive amounts of revenue.
Since the launch of Pokémon GO, it has made $2.3 billion in revenue and Fortnite has accumulated some 250 million players.
Established investors are finally noticing the mobile gaming network as a whole and the unpredictable growth it has generated in recent years.
This year alone the mobile games are projected to gain $55 billion in revenue. Due to these factors, the new outbreak of investment interest should really not come as a surprise.
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