New data from Juniper Research (www.juniperresearch.com) says that by 2019 worldwide revenues from tablet games will reach US$13.3 billion – a threefold rise on the 2014 figure of $3.6 billion.
The research group says that growth will be fueled by a number of key factors including improved storage capacity of devices, better graphical capabilities, increasing mobile broadband penetration and consumers’ preference for convenience and ubiquity. Juniper says that the next year could be critical for smaller, independent games developers.
The research group says that, in marketplaces now containing over one million apps, greater funding would be required to optimize the opportunity to achieve consumer awareness, and suggested that crowdfunding would represent an increasingly popular option. Juniper also says that there will be strong growth in monetizaation of smartphone games across emerging markets, with carrier billing deployments increasingly facilitating storefront payments in countries with lower banked penetration rates. It claimed that with micro-apps now being embedded in messenger services, these may serve as an additional delivery channel for games in the medium term, stimulating further growth.
Juniper adds that, that amid declining sales, a shift to digital game software distribution and adapting elements of the free-to-play business model are inevitable. Competition from newly emerging dedicated game hardware manufacturers, such as Steam Machine and Shield, poses new challenges for the traditional players as well as an opportunity for the segment to revitalize itself.
Other findings from the report include:
° Advertisements are becoming increasingly key in revenue generation, as only about 6% of mobile games will be paid for at point of download in 2019.
° Diversified gaming offerings have resulted in a sharp uplift in the scale and session length of social/casual games amongst wider demographics.