Data Suggests Mobile Game Industry to Face 2% Revenue Decline in 2022

Mobile Game Industry to Face 2% Revenue Decline in 2022
Credit - Mobile Games

The mobile gaming industry has been there for as long as we can remember. From the early days of button phone sets to modern-era gaming phones, we have had games to play in all of them. But after the release of touch phones, especially android and iOS systems, mobile gaming became a massive industry and has been uprising ever since.

2021 proved to be a watershed year for the mobile gaming industry, but even though this is the case, it seems like the inflationary pressures of 2022 are causing significant setbacks that are reversing some of the growth seen. The mobile games industry faces significant headwinds in 2022 from inflation, the cost of living crisis, and IDFA changes.

In the article below, we will discuss all that we know about this problem, what is causing it, and the future of the mobile gaming industry.

The Revenue Mobile Games Market Declines in 2022

The latest report by Sensor Tower, Mobile Gaming Market Outlook 2022, provides an overview of key industry trends and an analysis of the sector’s performance and direction. It also features deep dives into genres such as Card Battler, MMORPG, and Real-Time Strategy, showing the industry’s rising stars.

Mobile game industry decline article image 1
Credit – Sensor Tower

While global player spending on mobile games across the App Store and Google Play surged during the pandemic–peaking in Q1 2021 at $22.6 billion. In 2022, the market has seen its first-ever year-over-year decline in both Q1 and Q2. Player spending declined 6 percent to $21.2 billion in Q1, primarily due to the high base of comparison from the previous year, as spending was still up nearly 20 percent compared to Q1 2020. Meanwhile, in Q2, spending decreased by 6.9 percent to $20.1 billion.

Mobile game industry decline article image 2
Credit – Sensor Tower

According to Sensor Tower Game Intelligence, mid-Core mobile games accounted for 60 percent of worldwide player spending in 2022. RPG ranks as the No. 1 genre by revenue, accounting for almost half of the Mid-Core market. Meanwhile, Strategy, ranks as the No. 2 genre by player spending, accounting for 36 percent of the Mid-Core market. Casual titles made up 26 percent of total revenue, though these games make up 78 percent of all mobile game downloads, while Mid-Core accounts for 14 percent.

Mobile game player spending is forecast to decline in 2022, falling by 2.3 percent to $86 billion. While it remains to be seen how macro economic and political factors play out over the rest of the year and into 2023, Sensor Tower forecasts show a return to growth in 2023 and beyond.

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