2017 Predictions for Mobile Gaming

The mobile gaming industry entered 2017 with significant momentum, supported by projections that global smartphone and tablet gaming revenues would rise to $42.5 billion, up from $36.9 billion in 2016. The industry’s outlook is shaped by the successes of the previous year, including the rapid adoption of Pokemon Go, the refinement of rewarded video advertising, and the continued dominance of established titles that utilize disciplined marketing strategies. Despite some criticism regarding its mobile monetization strategy, Nintendo demonstrated strong performance with Super Mario Run, which achieved a 3.8% conversion rate and significant download volume, signaling that high-quality intellectual property remains a potent driver of mobile engagement.

Looking ahead, the mobile publishing model is expected to undergo a fundamental transformation. The traditional, often punitive, publishing arrangements that prioritize legacy services like PR and business development are increasingly viewed as inadequate. The market is shifting toward a model that emphasizes mobile-first necessities, such as advanced analytics, live operations, and sophisticated user acquisition. This evolution is likely to displace less efficient publishers in favor of those providing comprehensive, modern support structures.

Furthermore, the industry is poised for consolidation and platform diversification. Zynga is positioned for potential growth through strategic acquisitions, supported by a strong balance sheet and a focus on emerging platforms like Facebook Instant Games and iMessage. Simultaneously, these "app stores within app stores" are emerging as critical distribution channels. As developers seek to navigate highly competitive environments, these alternative platforms offer new opportunities to reach audiences, suggesting that the reliance on traditional, singular app store distribution may diminish as these secondary ecosystems gain traction and investment.