Market (Overall)·Updated Apr 8, 2026 by Xsolla
Report · January 1, 2024
Published by Xsolla
The report establishes that mobile gaming is the fastest‑growing segment of the global games market, with 2024 revenues projected at $98.7 billion and Asia alone contributing $65 billion. Emerging regions—Africa, Latin America, the Middle East—are expanding the player base and creating new monetisation opportunities. A shift toward direct‑to‑consumer web shops, used by 77 % of gamers, is reshaping distribution and allowing developers to bypass the traditional 30 % app‑store fee. The Digital Markets Act further empowers developers with data control and alternative channels, driving a rise in in‑app advertising (70 % of marketers now use it) and subscription models, especially in APAC where Singaporean buyers lead at 88 % adoption. Key findings highlight the importance of designing monetisation rather than merely inserting ads. Laura Teclemariam’s career trajectory illustrates how product teams that focus on “designing for monetisation” can lift games into the top 25 rankings. Her advocacy for apprenticeship and rotational programs addresses industry barriers to entry, promoting diversity and inclusion—critical as women now represent 87 % of mobile gamers. Regional data underscore a global trend: mature markets such as the UK and France see $1.4 billion in 2024 revenue, driven by casual and puzzle titles, while emerging markets like Egypt, Nigeria, and South Africa exhibit 25–30 % annual growth with average spend per user between $12 and $20. In all regions, the top 2–6 % of “whale” spenders generate roughly 95 % of in‑app revenue, reinforcing the value of targeted retention strategies. Overall, the analysis demonstrates that mobile gaming’s explosive growth is underpinned by diversified monetisation models, regulatory shifts favoring developer autonomy, and a demographic shift toward female players. These dynamics create a fertile environment for innovative distribution channels, inclusive talent pipelines, and higher lifetime values across both mature and emerging markets.
> **[Chart page]** This page contains visual data — view in PDF for the best experience. 4 18 30 90 Introduction Industry Movers Mobile Conclusion & Shakers Gaming 4 20 32 73 92 Foreword Representation Latest trends Insights on mobile About Xsolla in the games industry in mobile gaming web shops 6 24 36 78 Executive A conversation The state of the mobile A guide to building summary with Laura Teclemariam market: A journey around a successful webshop: the world The five golden rules 7 58 84 In the News Exploring the mobile Tilting Point’s winning strategy: landscape in a post-DMA The success of its world direct-to-consumer web shop 8 66 88 Industry The mobile debut What does this mean updates of the Epic Games Store for the industry? and its impact 15 71 devcom/gamescom 2024 – What does this mean our top takeaways for the industry?
FOREWORD The gaming industry is a testament Diversity is not just a goal but a necessity to innovation and growth, with mobile for sustainable growth. The increased gaming at the forefront of this representation of women in gaming transformation. In 2024, mobile gaming as players and industry leaders is projected to generate $98.7 billion demonstrates the importance of inclusion in revenue, with Asia contributing $65 in shaping the sector's future. This report billion. Regions like Africa, Latin America, highlights their impact, from leadership and the Middle East are also emerging roles to streaming platforms, and how as key players, reflecting the sector’s their contributions drive change. increasing global influence. As the Chief Marketing & At Xsolla, we are committed to supporting Growth Officer at Xsolla, This report delves into the rise developers and partners as they embrace of direct-to-consumer web shops, these new opportunities and challenges. I am honored to present reshaping how developers engage with Our tools, expertise, and insights the Autumn 2024 Edition their audiences and optimize revenue. are designed to empower you to grow of The Xsolla Report: As 77% of gamers now purchase through and succeed in today’s rapidly changing State of Play.
red to present reshaping how developers engage with Our tools, expertise, and insights the Autumn 2024 Edition their audiences and optimize revenue. are designed to empower you to grow of The Xsolla Report: As 77% of gamers now purchase through and succeed in today’s rapidly changing State of Play. This edition web shops, this model offers a powerful environment. alternative to traditional app stores. BERKLEY EGENES comprehensively offers We also explore the impact of the Digital I invite you to explore this edition Chief Marketing & the evolving trends, Markets Act (DMA), which unlocks new of The Xsolla Report: State of Play Growth Officer insights, and opportunities opportunities by giving developers greater and discover global gaming experts' control over distribution and monetization. latest trends, data, and insights. Xsolla shaping the global gaming Let this report serve as your guide industry. It is an essential Educational initiatives remain essential as we navigate the future of gaming resource for game for the future of the gaming industry. together. Platforms and programs designed developers, publishers, to bridge the skills gap empower and industry stakeholders a new generation of creators from all navigating this dynamic corners of the world. As more diverse Enjoy the game, voices enter the industry, more gaming landscape. experiences emerge. Berkley Egenes.
EXECUTIVE IN THE NEWS SUMMARY RECENT INDUSTRY NEWS The global video game industry continues 77% EPIC IS SUING WHAT DOES THE DIGITAL The global video game industry continues to experience unprecedented growth, GOOGLE AND NOW MARKETS ACT MEAN FOR MOBILE with innovations in technology and shifts SAMSUNG, TOO GAME DEVELOPERS? in consumer behavior driving engagement of players report across diverse gaming platforms. As gaming purchases through becomes an increasingly integral part web shops of daily life for millions around the world, The Verge GameIndustry.Biz the industry also continues to transform, offering new opportunities for developers, We’ll also highlight the rising trend investors, and stakeholders alike. of web shop usage since 77% of players In this edition of The Xsolla Report, we’re report purchases through web shops, AFRICA TAKES AIM BOSS LEVEL: THE GAMING honing our focus on the mobile gaming emphasizing their growing acceptance AT THE VIDEO GAME ECOSYSTEM POWERS UP and convenience for mobile game sector, which is projected to generate and convenience for mobile game MARKET developers. an impressive $98.7 billion in revenue developers. globally in 2024. Asia is leading the charge Additionally, we’ll navigate the impact as the world’s largest mobile gaming of women in the gaming industry, who Le Monde JP Morgan market — expected to contribute about are reshaping the landscape through their $65 billion in revenue by the end of this leadership and contributions, as well year — but we’ll also explore the countless as the continued impact of the Digital other emerging markets around the world.
Monde JP Morgan market — expected to contribute about are reshaping the landscape through their $65 billion in revenue by the end of this leadership and contributions, as well year — but we’ll also explore the countless as the continued impact of the Digital other emerging markets around the world. Markets Act (DMA) on the mobile gaming CLOUD GAMING, SHIFT TO NEW MODELS OF MONETIZATION other emerging markets around the world. landscape. AND 5G INTERNET CONNECTIVITY DRIVE GROWTH - landscape. A $346.7 BILLION MARKET BY 2028 So dive deeper into these topics, explore $98.7B new data and trends about mobile gaming, and discover insights and analyses from global experts that will help inform your mobile strategies and Yahoo Finance in global mobile gaming decisions as the year comes to a close. revenue projected in 2024 inform your mobile strategies and decisions as the year comes to a close.
INDUSTRY PAYMENTS UPDATES 70% PAYMENTS THE IMPORTANCE OF INSTANT PAYOUTS of gamers value THE IMPORTANCE OF INSTANT PAYOUTS instant payouts Almost 70% of gamers value instant payouts for their speed Almost 70% of gamers value instant payouts for their speed and convenience while 36% value their security. WHAT’S NEW ACROSS GAME 17% VRIAR PAYMENTS INDUSTRY SECTORS VR/AR PAYMENTS While 17% of users plan to adopt VR/AR payments within While 17% of users plan to adopt VR/AR payments within of users plan the next two years, lack of knowledge remains a significant to adopt VR/AR barrier for 28% of consumers. Despite this, investor interest Why gamers prefer payments in consumer VR/AR applications, including gaming, is expected instant winnings, 2023 to remain high in 2024. Source Consumer sentiment on AR Virtual Augmented 69.9% or VR payments Characteristic reality (VR) reality (AR) Speed/guarantee in 2023 payments payments of good funds Source Source 66.3% Convenience I do not know enough 28% 29% about this to use it 36.5%Security Will use this to purchase goods 17% 18% in the next two years if this 28.0%Easier to know when money becomes more widely available will be received and can be spent I will not use this to purchase 12% 12% 26.1% Do not have to worry about being goods, as it does not seem safe paid and having a check bounce I only see myself using this 10% 10% in the next two years if I learn 17.2% Do not have to pay more about it check-cashing fees
The 2026 State of Gaming analysis demonstrates a shifting landscape in which mobile gaming remains the largest driver of downloads—approximately 50 billion in 2025—but its growth rate is slowing. Revenue, however, continues to climb as monetization models mature and lifetime value deepens, especially within hybrid‑casual titles that now generate the most incremental income. In contrast, PC and console platforms experience record revenue growth, with Steam’s premium segment up 32 % and blockbuster releases such as Battlefield 6 capturing significant market share from incumbents. Shooter downloads on these platforms have plateaued, suggesting new titles are primarily cannibalizing existing audiences rather than expanding the category. Genre‑specific dynamics reveal that strategy games are the only mobile genre to grow in downloads, driven by 4X titles from Eastern developers. Action and shooter games dominate PC/console gains, while hyper‑casual remains the largest download engine but shows a notable lift in time spent, particularly in Tier 2 markets. Casual titles face declining day‑7 retention, indicating a stickiness challenge that could erode long‑term player value. Live‑ops and acquisition strategies have evolved toward retention‑focused events, multi‑tier season passes, and expedition‑style rewards. These mechanisms now represent the most reliable revenue drivers across competitive genres such as RPG, action, and simulation. Advertising spend remains concentrated on social channels—YouTube, Facebook/Instagram—and high‑attention formats like video, playable, and rewarded ads. Battlefield 6’s pre‑launch spend surpassed Call of Duty titles, leveraging Facebook, Reddit, and desktop display, while its post‑launch strategy pivoted to YouTube with cinematic, celebrity‑hook creatives. Geographically, the U.S. market shows a skew toward lifestyle and puzzle categories despite lower IAP shares, whereas casino titles exhibit higher spend‑to‑revenue efficiency. Overall, the industry is moving from acquisition toward deeper monetization per user, with indie shooters and simulation titles gaining traction amid intense competition in the shooter segment.
The interim filing presents the fourth‑quarter 2025 financial results for a midcore‑casual gaming group, emphasizing a record‑setting revenue run and the successful execution of a transformation agenda that includes the integration of the Plarium acquisition and the rollout of a new district structure in early 2026. Revenue reached SEK 3,123 million, reflecting 108 % organic growth year‑on‑year and a 25 % increase on a constant‑currency basis, while adjusted EBITDA rose to SEK 717 million, delivering a 23 % margin that matches the full‑year figure. Unlevered free cash flow amounted to SEK 878 million, with a cash‑conversion rate of 66 % and a leverage ratio of five times EBITDA, underscoring robust liquidity and disciplined capital management. User‑acquisition spending accelerated, representing 38 % of quarterly revenue—up from 37 % in the prior quarter—and grew 76 % on a reported basis, driven by heightened investment in original studios, new casual titles, and the racing franchise. The direct‑to‑consumer channel expanded by 600 basis points to 32 % of total revenue, reflecting a strategic shift toward higher‑margin in‑app purchases. Across the fiscal year, the company posted a 9 % organic revenue increase, with word‑games, racing, and RAID franchises delivering the strongest quarter‑end performance. Operating cash flow for the quarter stood at SEK 840 million, while adjusted net income was SEK 1,390 million, translating to an adjusted EPS of SEK 11.33. The financial outcomes exceed guidance and position the firm to meet its medium‑term outlook, with a pre‑IPO study for PlaySimple concluded and the midcore transformation progressing as planned.
A well‑designed in‑game offer system is presented as the most potent driver of lifetime value and average revenue per paying user. By integrating a limited set of synergistic offer types—login bonuses, triggered prompts, endless streams, “1 + X” bundles, battle‑passes, stamp‑cards, and curated bundles—and optimizing their frequency, timing, pricing, segmentation, and economic balance, developers can achieve conversion rates as high as ninety‑six percent on login offers and lift repeat‑purchase value by roughly twenty percent through endless offers. Conversion is shown to be a function of repeated exposure rather than a single impression; players typically require about seven viewings before taking action. The most effective moments to surface offers are at login, during “out‑of‑currency” events, after level failures, or in high‑momentum gameplay phases. A dynamic, tiered pricing ladder that escalates after each purchase and regresses after periods of inactivity—exemplified by a seven‑tier structure ranging from under one dollar to ninety‑nine dollars—enables precise alignment with player spend propensity while avoiding both under‑monetization of high‑potential users and alienation of low‑spenders. Segmentation must extend beyond basic recency and frequency metrics to incorporate geographic tier, acquisition source quality, and player progression. Lower‑tier regions demand adjusted price ladders and reduced offer frequency, whereas high‑quality acquisition channels justify more complex bundles. Early‑game players respond best to inexpensive, simple offers, while mid‑ and late‑game users can be presented with higher‑value packages. Anchoring the entire shop around a stable, low‑priced entry pack establishes a reference point that shapes perceived value across all offers. Collectively, these principles apply to mobile and casual games operating globally, reflecting current industry practices and data from recent case studies. Implementing the outlined framework promises measurable improvements in monetization efficiency, player satisfaction, and overall revenue performance.
Mobile gaming has become the dominant engine of the global video‑game market, now accounting for more than half of total industry revenue and projected to exceed $126 billion in 2025, with an overall forecast of $150 billion for the segment. The surge is driven by unprecedented user engagement—4.2 trillion hours of app usage in 2024—and a rapid shift toward direct‑to‑consumer (D2C) commerce following the April 2025 court order in Epic Games v. Apple, which obliges iOS platforms to permit external web‑shops and allows developers to retain up to 95 % of transaction value. Early adopters report revenue recoveries measured in millions and a 60 % increase in user engagement for high‑volume titles. Regulatory reforms across the EU, United States, Japan, South Korea and China are dismantling traditional app‑store monopolies, mandating alternative storefronts, transparent odds disclosure and the elimination of hidden fees. Despite tighter oversight, the mobile ecosystem remains robust, with the United States generating roughly $52 billion in in‑app‑purchase sales, while emerging markets in Latin America, Southeast Asia and Saudi Arabia expand the geographic footprint. Hybrid monetisation—combining in‑app purchases, advertising and subscriptions—is employed by 72 % of developers and now represents about three‑quarters of mobile revenue; live‑ops‑driven hybrid‑casual titles are delivering a 30 % year‑over