Two & a Half Gamers Session #54: Eric Kress

The mobile gaming industry is currently navigating a period of significant structural upheaval, characterized by shifting user acquisition strategies and a challenging macroeconomic environment. Central to this transformation is the evolving role of major ad networks and the ongoing impact of privacy changes on iOS. While some industry veterans express skepticism regarding the long-term viability of current mobile business models, others point to the resilience of ad-based monetization and the emergence of new development frontiers. The adoption of SKAN 4.0 remains a critical benchmark for the sector, yet the continued reliance on fingerprinting by major players like Unity and AppLovin suggests a gap between platform policies and practical execution in the field.

Market dynamics indicate a consolidation of power among a few dominant entities, which complicates the landscape for smaller developers. Despite these hurdles, revenue guidance from key ad tech firms remains optimistic, suggesting that while the "old guard" of gaming companies may face existential threats, the infrastructure supporting mobile advertising continues to generate substantial value. The industry is also witnessing a distinct trend of innovation moving from Eastern markets to the West, particularly in terms of monetization mechanics and gameplay loops.

The outlook for emerging technologies such as virtual reality and blockchain gaming has soured, with many experts now viewing them as secondary or failing ventures compared to the core mobile market. Instead, the focus has returned to hypercasual evolution and the refinement of user acquisition operations. Success in the current climate requires a brutal assessment of platform fees and a willingness to adapt to a "post-IDFA" world where traditional targeting is no longer guaranteed. Ultimately, the sector is moving toward a more disciplined, data-driven era where only the most agile and well-capitalized developers are likely to thrive.