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Mobile gaming has evolved considerably in recent years. More sophisticated technology and graphics have contributed to a rapid rise in player engagement thanks in part to the pandemic. Many mobile games have graphics comparable to console versions, with have the added advantage of being able to be played from any location on a smartphone.
Genshin Impact, for example, earned more than $2 billion in 2022, in large part because developers were able to adapt PC and console single-player mechanics to smaller screens. Monopoly GO!, an interactive casual game, was downloaded more than 100 million times and exceeded $1 billion in revenue within seven months of its April 2023 release.
Below is a closer look at how mobile games are evolving with some emerging trends to keep an eye on for the next year.
1. AI Adoption
While almost 90 percent of creators utilize artificial intelligence (AI) when developing games, AI use in gameplay is still in its infancy. However, this will change dramatically soon, with developers recognizing the immense potential of AI to deliver more immersive experiences and environments by using natural language processing, content generation, and computer vision. In a 2023 study of 25 gaming executives, the global consulting firm Bain & Company projected that generative AI will account for 50 percent of game development within the next decade.
In November 2023, Xbox announced a partnership with Inworld AI to develop realistic AI-generated game dialogue for non-playable characters, enhance character development, and create engaging narratives at scale. Global game engine Unity, meanwhile, is incorporating AI features, including its Safe Voice product that addresses toxic player behaviors, into the Unity 6 platform.
2. The Growth of Hybrid-Casual Games
Hyper-casual has been one of the top-downloaded genres for many years and once held most of the market share. More than one-third of the top-100 most-downloaded games worldwide in 2021 were hyper-casual. These games are predicted to decline in popularity in 2024, with hybrid-casual reaping the benefit.
Hyper-casual games, like Postknight and Crossy Road, are relatively easy to develop while instantly playable and engaging. However, they typically have low retention levels and minimal capacity for monetization. Hybrid-casual games have similar gaming mechanics with increased player engagement through features like leaderboards, chances to unlock characters or content via in-app purchases, and player progression.
Revenue from hybrid-casual games nearly doubled from 2020 to 2022, growing up $502 billion to more than $974 billion. Total downloads also increased by 13 percent year-over-year from 2021 to 2022. Ancient Battle, Clash Royale, and Board Kings are among the more popular hybrid-casual games in 2024.
3. CTV Advertising
Marketing and advertising will also change dramatically in 2024, adapting to make use of new technologies and strategies. Marketing teams will utilize AI to create eye-catching icons and storyboards for video ads. Similarly, developers will look to market their games and boost their user base through connected TV (CTV) advertising. CTV is any electronic viewing device with an embedded web browser, i.e., a video game system, Smart TV, or Chromecast. As of 2022, nearly three-quarters of all US households had CTV. By 2026, CTV is expected to attract more than $38 billion globally in advertising expenditure.
There are some developers already taking advantage of CTV. Unity recently partnered with Roku to give its customer acquisition campaigns a broader reach. Merge Mansion, with an effective live action mobile game ad featuring Pedro Pascal, hit 40 million downloads. Royal Match also utilized CTV ads in its climb from No. 115 to No. 24 in the top US downloads in the period from November 2022 to April 2023.
"From the outset, we hypothesized that the channel would be predominantly a brand play," notes Nick Cullen, lead of Mistplay's user acquisition team. "After some collaboration with our data team, we were able to surmise that it was not just successful from a brand perspective, but also drove competitive CPIs and ROAS for our app."
4. Communication Features
Gaming grew in popularity during the pandemic, but with shelter-in-place and social distancing measures, users wanted more communication with fellow players. This was especially true in mobile gaming, which lagged console and PC regarding social features. Developers have listened and are increasingly incorporating communication features, such as in-game chat, guilds, and cooperative models into their games. Roblox and Call of Duty: Mobile, for example, now have viewing rooms where users can watch ongoing gaming sessions. Moreover, about two-thirds of the top-50 most-downloaded mobile games have at least one communication channel.
5. Different Monetization Strategies
Subscription models are becoming more common in the mobile gaming world, as publishers use features like expanded access and in-game perks to build loyalty and enhance the player experience. Consumers have become used to the subscription model for streaming services and have shown they're willing to pay for monthly fees for quality mobile games. A 2023 report from Liftoff and AppsFlyer reported that mobile games accounted for nearly 30 percent of subscription-based apps, up from 11 percent the year prior.
