top of page

Gaming in 2023: Mobile reigns supreme, but the battlefield is shifting

Retraction in mobile and growth in PC marks a first in over a decade.
Retraction in mobile and growth in PC marks a first in over a decade.

Another year and another top showing for mobile games in the industry, but mobile growth was negative for the first time since its inception. For non-industry gamers, this is more of a continuation of the disruption in distribution that began with Apple's IDFA. Regardless, there is no doubt that mobile still dominates despite these speed bumps. I'll jump into a few quick thoughts on why.


Mobile Gaming: Still the Giant

Data.ai's data highlights the unmatched scale of mobile gaming. With over 1,500 apps generating over $10 million annually and 13 surpassing $1 billion, the commercial dominance of mobile gaming is undeniable.


The accessibility and reach of mobile games allow them to capture a global audience, creating a revenue scale that PC and console games struggle to match. Simply put, everyone has a phone, and few have a PS5 or gaming PC. Additionally, the advent of Free to Play (F2P) has created a $0 value proposition that only requires your time to get started.


PC and Console: A Pursuit of Prestige

When we look at the PC and console sectors, the focus shifts. The top 10 games by revenue on platforms like Steam showcase a trend toward critically acclaimed, high-budget titles.


These games prioritize narrative depth and gameplay sophistication, such as Baldur's Gate 3 ($657m) and Hogwarts Legacy ($341m), which resonate deeply with core gaming audiences. The disparity in reach is apparent as gamers vote with their pocketbooks: Steam had five games over the $100m mark, and mobile had 150 games.


This is not an opposition piece to console and PC, but rather, I look at these as installments of franchises that offer new narratives and experiences for fans. Balders Gate 3, More Harry Potter, Resident Evil 4, The annual FC game from EA. They serve a different purpose, and we should measure their success from a more critical standpoint than purely commercial.


The Mobile Pivot of Traditional Giants

Even PC and console gaming titans, like Activision Blizzard, are pivoting toward mobile to secure their financial future. As highlighted in the revenue growth projections, mobile gaming is becoming an essential revenue stream, outpacing traditional segments in sheer growth potential. This trend underscores that even the most revered developers recognize the necessity of mobile gaming’s mass-market appeal.


It's really a no-brainer, and a straightforward cost-benefit analysis reveals that the most profitable venture for an established studio is to develop mobile games that are relatively inexpensive, quick to produce, and easily scalable.


Let's generalize the inputs for simplicity:

  • AAA titles take hundreds of millions of dollars in development and marketing before players get to play the game and nearly a decade to develop with marginal upside.

  • Quality mobile games cost a fraction, a maximum of a few years, and "moonshot" upside.


Looking at projects through this lens, franchising and sequels pointed out above make much more sense—using recurring IP can mitigate the risk of shipping a flop.


Scale vs. Prestige: Two Sides of Gaming

Generative AI art still has a way to go.
Generative AI art still has a way to go.

While mobile gaming’s strength lies in its scale and reach, PC and console games dominate in terms of acclaim and dedicated fan bases. The disparity in reach is stark—mobile's audience encompasses billions globally, while PC and console players number in the hundreds of millions. Despite this, PC and console developers are bridging the gap, creating spin-offs and adaptations for mobile platforms, leveraging their established IPs for broader monetization.


This fad is only beginning to creep into Western markets but has been a mainstay in Asia. When looking at the next big game or collab, we can review the hottest IPs from pop culture—often manga.


Closing Thoughts


Gaming in 2023 showcases a fascinating dynamic: mobile gaming as the revenue kingpin and PC/console gaming as the bastion of prestige. A greater convergence of these two worlds is inevitable, with the first signs from traditional gaming industry leaders. The real question isn't whether mobile will maintain its lead but how PC and console games can preserve their unique appeal while entering the scalable mobile market!


Kommentare


Drop Me a Line, Let Me Know What You Think

Thanks for submitting!

© 2022 by PM-Notebook.

bottom of page