The mobile games market continues to see impressive growth as it looks to reach close to $100 billion by the end of this year with some developers already recording strong quarterly earnings.
Tapinator Inc., a mobile gaming developer which has an impressive library of over 200 games for iOS, Android and Amazon platforms, announced its profitable quarterly report for the three months which ended June 30, 2016.
Tapinator CEO,Ilya Nikolayev:
Driven by more than 18 million average monthly active users, our second quarter revenues grew 73% year-over-year to approximately $1,062,000, representing our eighth consecutive quarter of at least double-digit year-over-year revenue growth
The company attributes some of its financial growth to its Rapid-Launch Games lineup as well as its Full-Featured Games division, which saw its Video Poker Classic title becoming a success.
Mobile Gaming Market Value
Already surpassing the PC market share, the mobile gaming space is expected to reach $36.9 billion in 2016, up from its $34 billion back in 2015. In fact, the mobile games segment is also expected to capture 37% of the total global games market of $99.6 billion by the end of this year.
Nintendo Co.Ltd. and its recent Pokémon Go craze has already generated about $250 million in revenue from about 50,000 people in the U.S., U.K. and Germany. Stories of people hunting the shadows, ending up on private property to catch a Pokémon are all too common as the popularity of this title increases.
Social media game developer Zynga Inc., also announced a strong second quarter:
Our Q2 bookings and Adjusted EBITDA were both above the high end of our guidance range, with bookings at $175 million and Adjusted EBITDA at $12 million. In Q2, we launched 4 new games, including the successful release of NaturalMotion’s highly anticipated CSR2.
The mobile games industry is an interesting model. Most people prefer not to pay for a title, leaving only a small percentage of users willing to shell out cash for a game.
According to SWRVE, only 1.9% of players made a purchase in the month of February in 2016 with an average monthly spend of $24.66. That’s a small amount of users powering such a large industry.
The forecasts for the global games market for the next three years is projected to see an increase. According to Newzoo.com, we are looking at revenues reaching $118.6 billion in 2019.