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5 KEY TRENDS
TO STAY AHEAD
OF THE GAME
WHAT TRENDS ARE CREATING WAVES IN MOBILE GAMING AND HOW TO ADAPT?
Changes that rock the foundations of industries are becoming increasingly common. The mobile gaming industry is no exception. If you want to stay ahead, it’s vital you keep an eye on the present and the future. Knowing what trends are happening can help you come up with innovative ideas, stay ahead of your competition, and take advantage of new technologies.
Let’s look at what trends are creating waves in mobile gaming, and how a savvy developer should adapt.
#1
Boost your development process with AI
Six years ago, IBM Watson (AI for businesses) put together a trailer for a horror movie. The trailer was – if the YouTube comments are anything to go by – engaging, thrilling and didn’t give away the ending.
In 2017, Amper Music (an AI) started generating songs. Shutterstock eventually bought the AI, and there are now over 100,000 pieces from Amber Music on their site. In 2020, OpenAI released GPT3. The underlying model behind ChatGPT, DALL-E and many other AI tools.
We’re now seeing a surge and increasing popularity of similar AI generators. From Midjourney for art to Soundraw for music. There are even game-specific generators – Hotpot. AI creates weapons, cards and characters; AI Texture Generator makes textures; and Sloyd.AI makes 3D models.
THIS IS THE BEGINNING OF THE CURVE
AI’s growth is exponential. In a few short years, we shouldn’t be surprised if every aspect of every industry involves AI.
Right now, AI is best at helping people come up with ideas, create concept art, or quickly produce a prototype. It’s a tool to speed up development, not a replacement. Art teams and writers will still be essential. They’ll simply use AI as another tool in their kit, speeding up their process.
One area where AI can really help is ideation. You can use AI to help you brainstorm ideas or quickly create art or assets for inspiration. This will help you keep pace with the rapid turnaround necessary in mobile gaming.
#3
Hybridcasual is here to stay. Are you ready?
With the constant evolution of player behavior, we're seeing an appetite from players for deeper and more engaging experiences in mobile gaming. This gives developers of hypercasual games an exciting opportunity – to evolve the hypercasual model. And we’re already seeing this in the shift to hybridcasual.
While the gameplay doesn’t need to stray too far away from before – core mechanics can continue to be short, simple and satisfying – game systems like profession paths, richer player cosmetics, competitive elements and a narrative style of gaming, can keep players returning more and more. They increase playtime and encourage people to invite their friends.
According to the “Hybridcasual Games Playbook” by Sensor Tower and Homa, in just 2022 alone, hybridcasual games amassed more than five billion downloads, which means a 3% increase from 2021 when the genre started to boom. Also, over the last two years, revenue for hybridcausal games has almost doubled, as developers are mastering the balance between monetization and player experience. This is definitely a unique opportunity for developers to create top-performing games.
#5
Your in-game currency can spread across your portfolio
In 2020, Epic Games took Apple to court over Apple’s App Store policy. One win that came from this was that developers can direct their customers to payment methods outside the App Store. Apple currently takes 30% of all transactions. Sending people elsewhere means that developers would save those fees.
CROSS-PLATFORM ECONOMIES MIGHT RISE
Now that developers can point players in alternative directions, it makes it easier for them to build systems that work across their entire portfolio. Instead of buying coins or gems for a single game, players could buy on their account.
This encourages players to stick within a studio or publisher’s portfolio, lowering the amount of churn. Keeping a player within their ecosystem and offering a wide range of experiences results in higher odds of retaining and engaging users.
#2
Monetization beyond video ads: find the best mix for your games
For the last few years, many studios and game creators have heavily relied on advertising. While this is still a lucrative model and has supported huge growth within the industry, savvy publishers and developers are always looking for innovative ways to increase and maximise their revenue streams, for example, adding subscriptions and in-app purchases.
We’re already seeing the shift. According to “The Gaming Playbook” by GWI, in 2020 18% of gamers already had a season pass. Likewise, one in four gamers bought a microtransaction that year. Grand View Research states that the subscription-based gaming market is expected to grow 12.8% a year until 2030 to reach $24.1 billion.
Another ad format that’s becoming increasingly popular is audio advertising. A study from YouGov found that players of mobile games prefer audio ads over traditional advertising, as they don’t disrupt the gameplay (audio can run while they still play). This is why we’ve seen a rise in technologies like AudioMob, Odeeo and Targetspot that allow game developers to add radio-like ads into their games.
PLAN YOUR MONETIZATION EFFORTS AROUND YOUR GENRE
Just like every genre has its own mechanics, depth, and ways of building, every monetization strategy has its own approach. According to Unity’s Monetization Insights Mobile Report 2022, hypercasual games rely on getting 94% of their revenue from advertising. At the opposite end of the scale, role-playing games get just 19% from ads – with 81% coming from in-app purchases.
Genres that rely most heavily on advertising will probably be the most affected by an advertising lull. So game creators in those genres should consider deepening their game systems, concentrating on lifetime value, and focusing more on in-app purchases.
That doesn’t mean that developers should avoid advertising completely. A hybrid monetization model isn’t just about switching to subscriptions and in-app purchases.
Changing what ad formats you use should also be an integral part of your strategy. You should use a combination of strategies and be aware of genre-specific trends.
#4
Brand partnerships bring larger audiences
Brands want to get more bang for their buck. And partnerships and sponsorships bring a huge amount of value.
The gaming industry is a very attractive prospect for brands, according to the Newzoo report “A New Era of Engagement in Media & Entertainment”. Imagine just one scenario: A streamer plays a game with an in-game billboard. While only one player sees it, there are thousands of spectators. That’s a lot of eyeballs for that brand.
This means that brands are looking to partner with developers. Whether that’s creating an entire game using their IP or simply featuring their brand as extra content. Fashion brands, in particular, have been teaming up with games to add their clothing as cosmetics.
On the other side of the coin, gaming IPs are among the most popular brands in the world. That’s why we’re seeing shows like The Witcher, The Last of Us, Cyberpunk and Arcane.
This is another opportunity for mobile developers. You can partner up with larger game IPs and develop a casual or hybridcasual title based in their universe. A great example of this is Valentine and Homa Gang, the IP universe we’re building at Homa.
#1
Boost your development process with AI
Six years ago, IBM Watson (AI for businesses) put together a trailer for a horror movie. The trailer was – if the YouTube comments are anything to go by – engaging, thrilling and didn’t give away the ending.
In 2017, Amper Music (an AI) started generating songs. Shutterstock eventually bought the AI, and there are now over 100,000 pieces from Amber Music on their site. In 2020, OpenAI released GPT3. The underlying model behind ChatGPT, DALL-E and many other AI tools.
We’re now seeing a surge and increasing popularity of similar AI generators. From Midjourney for art to Soundraw for music. There are even game-specific generators – Hotpot. AI creates weapons, cards and characters; AI Texture Generator makes textures; and Sloyd.AI makes 3D models.
THIS IS THE BEGINNING OF THE CURVE
AI’s growth is exponential. In a few short years, we shouldn’t be surprised if every aspect of every industry involves AI.
Right now, AI is best at helping people come up with ideas, create concept art, or quickly produce a prototype. It’s a tool to speed up development, not a replacement. Art teams and writers will still be essential. They’ll simply use AI as another tool in their kit, speeding up their process.
One area where AI can really help is ideation. You can use AI to help you brainstorm ideas or quickly create art or assets for inspiration. This will help you keep pace with the rapid turnaround necessary in mobile gaming.
#2
Monetization beyond video ads: find the best mix for your games
For the last few years, many studios and game creators have heavily relied on advertising. While this is still a lucrative model and has supported huge growth within the industry, savvy publishers and developers are always looking for innovative ways to increase and maximise their revenue streams, for example, adding subscriptions and in-app purchases.
We’re already seeing the shift. According to “The Gaming Playbook” by GWI, in 2020 18% of gamers already had a season pass. Likewise, one in four gamers bought a microtransaction that year. Grand View Research states that the subscription-based gaming market is expected to grow 12.8% a year until 2030 to reach $24.1 billion.
Another ad format that’s becoming increasingly popular is audio advertising. A study from YouGov found that players of mobile games prefer audio ads over traditional advertising, as they don’t disrupt the gameplay (audio can run while they still play). This is why we’ve seen a rise in technologies like AudioMob, Odeeo and Targetspot that allow game developers to add radio-like ads into their games.
PLAN YOUR MONETIZATION EFFORTS AROUND YOUR GENRE
Just like every genre has its own mechanics, depth, and ways of building, every monetization strategy has its own approach. According to Unity’s Monetization Insights Mobile Report 2022, hypercasual games rely on getting 94% of their revenue from advertising. At the opposite end of the scale, role-playing games get just 19% from ads – with 81% coming from in-app purchases.
Genres that rely most heavily on advertising will probably be the most affected by an advertising lull. So game creators in those genres should consider deepening their game systems, concentrating on lifetime value, and focusing more on in-app purchases.
That doesn’t mean that developers should avoid advertising completely. A hybrid monetization model isn’t just about switching to subscriptions and in-app purchases.
Changing what ad formats you use should also be an integral part of your strategy. You should use a combination of strategies and be aware of genre-specific trends.
#3
Hybridcasual is here to stay. Are you ready?
With the constant evolution of player behavior, we're seeing an appetite from players for deeper and more engaging experiences in mobile gaming. This gives developers of hypercasual games an exciting opportunity – to evolve the hypercasual model. And we’re already seeing this in the shift to hybridcasual.
While the gameplay doesn’t need to stray too far away from before – core mechanics can continue to be short, simple and satisfying – game systems like profession paths, richer player cosmetics, competitive elements and a narrative style of gaming, can keep players returning more and more. They increase playtime and encourage people to invite their friends.
According to the “Hybridcasual Games Playbook” by Sensor Tower and Homa, in just 2022 alone, hybridcasual games amassed more than five billion downloads, which means a 3% increase from 2021 when the genre started to boom. Also, over the last two years, revenue for hybridcausal games has almost doubled, as developers are mastering the balance between monetization and player experience. This is definitely a unique opportunity for developers to create top-performing games.
#4
Brand partnerships bring larger audiences
Brands want to get more bang for their buck. And partnerships and sponsorships bring a huge amount of value.
The gaming industry is a very attractive prospect for brands, according to the Newzoo report “A New Era of Engagement in Media & Entertainment”. Imagine just one scenario: A streamer plays a game with an in-game billboard. While only one player sees it, there are thousands of spectators. That’s a lot of eyeballs for that brand.
This means that brands are looking to partner with developers. Whether that’s creating an entire game using their IP or simply featuring their brand as extra content. Fashion brands, in particular, have been teaming up with games to add their clothing as cosmetics.
On the other side of the coin, gaming IPs are among the most popular brands in the world. That’s why we’re seeing shows like The Witcher, The Last of Us, Cyberpunk and Arcane.
This is another opportunity for mobile developers. You can partner up with larger game IPs and develop a casual or hybridcasual title based in their universe. A great example of this is Valentine and Homa Gang, the IP universe we’re building at Homa.
#5
Your in-game currency can spread across your portfolio
In 2020, Epic Games took Apple to court over Apple’s App Store policy. One win that came from this was that developers can direct their customers to payment methods outside the App Store. Apple currently takes 30% of all transactions. Sending people elsewhere means that developers would save those fees.
CROSS-PLATFORM ECONOMIES MIGHT RISE
Now that developers can point players in alternative directions, it makes it easier for them to build systems that work across their entire portfolio. Instead of buying coins or gems for a single game, players could buy on their account.
This encourages players to stick within a studio or publisher’s portfolio, lowering the amount of churn. Keeping a player within their ecosystem and offering a wide range of experiences results in higher odds of retaining and engaging users.
ANTICIPATE CHANGE TO STAY STRONG
There is a clear theme among the trends: the mobile gaming market is constantly changing.
You can never fully predict how the world will change. In a couple of years, this ever-evolving market will likely have changed once more. But let’s take it day by day.
For now, we recommend that you use more varied monetization strategies, explore the uses of AI to speed up your development process, add in casual mechanics and progression systems in your games, assess partner opportunities with brands, and spread your in-game currencies.
If you do that, you’ll surely be ready for the next change that the industry throws at you.
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