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2025 Global Games Market Report

The global games market is entering a period of moderate maturation, with total revenue projected to reach $188.8 billion in 2025, a 3.4% increase over the previous year. The industry now serves 3.6 billion players, reflecting a 4.4% year-over-year expansion. While mobile gaming maintains its dominance, accounting for $103.0 billion or 55% of total revenue, console gaming is poised for the strongest growth at 5.5%, reaching $45.9 billion. PC gaming remains a stable pillar with $39.9 billion in revenue. Despite the growth in player counts, average spend per payer is experiencing a slight decline, signaling a strategic pivot toward maximizing engagement and retention within saturated markets rather than relying solely on aggressive monetization. Strategic success in this environment increasingly depends on long-tail engagement and the effective management of post-launch content. Data indicates that releasing single-player titles during the second quarter yields 34% higher engagement compared to the saturated holiday season. Furthermore, simultaneous multi-platform launches significantly outperform staggered releases, and titles exiting Early Access after a six-month window demonstrate superior acquisition results. Developers are also increasingly leveraging remakes and remasters to mitigate rising development costs, while user-generated content platforms like Roblox continue to expand as foundational ecosystems for daily active users. Geographically, the market continues to diversify, with Latin America emerging as a notable growth region projected to reach $8.3 billion, driven primarily by mobile adoption. The industry’s analytical framework, which focuses on consumer spending on software and services, highlights that player attrition typically stabilizes after 12 weeks. Consequently, long-term commercial viability is now inextricably linked to aligning content updates and discounting strategies with this post-launch retention curve, ensuring that community support remains as critical as initial sales performance.

market-analysis market-forecast player-demographics+4

NewzooSept 2025

Financial

IGG Inc. 2025 Interim Report

IGG Inc. maintained a stable financial trajectory during the first half of 2025, reporting interim revenue of HK$2.72 billion and a profit of HK$320 million. While flagship title *Lords Mobile* remains the primary revenue driver at 42% of total turnover (HK$1.15 billion), the period was defined by a strategic shift toward the APP Business. This segment grew 30% year-on-year to HK$530 million, now contributing nearly 20% of total revenue and reaching 73 million monthly active users. Geographically, the Group’s core strength remains in Asia and Europe, which together account for 77% of total revenue. The Group’s balance sheet remains robust, characterized by a strong liquidity position with HK$2.50 billion in cash and a reduced gearing ratio of 25.6%. Gross margins improved to 83%, supported by a significant decrease in channel costs, which offset rising promotion and advertising expenses. Despite a HK$19.7 million net loss across financial assets and joint ventures, the Group demonstrated a commitment to shareholder returns by declaring dividends and share buy-backs totaling approximately 61% of the period’s profit. This includes a combined interim and special dividend of HK13.9 cents per share, a marked increase over the previous year. Corporate governance and capital management activities included the execution of share buy-backs totaling 9.3 million shares and the granting of 6.87 million new awarded shares to support personnel retention. To navigate regulatory restrictions on foreign ownership in China’s online gaming sector, the Group continues to utilize structured contracts with PRC-based entities. While these entities contribute only 3.27% of total revenue, they ensure compliance with local regulations while allowing for full financial consolidation. Looking forward, the Group is optimizing its portfolio through the potential disposal of non-core assets, such as a historical complex in Italy, to focus on its primary mobile internet and gaming interests.

investment market-analysis mobile+1

IGGAug 2025

Financial

FY2025 Q2 Financial Results (Consolidated): [Japanese GAAP]

Aiming Inc. reports a significant financial turnaround for the first half of fiscal year 2025, covering the period from January 1 to June 30, 2025. Following a period of losses in the previous year, the company achieved a return to profitability, driven by an 11.0% year-over-year increase in net sales to 8,989 million yen. Operating income reached 1,843 million yen, a substantial recovery from the 748 million yen loss recorded during the same period in 2024. Net income attributable to owners of the parent totaled 827 million yen, compared to a 934 million yen loss in the prior year. The company’s financial position strengthened during this period, with total assets rising to 8,666 million yen and net assets increasing to 6,766 million yen. The equity ratio improved from 71.0% at the end of 2024 to 76.7% as of June 30, 2025. Cash and deposits saw a notable increase, rising from 2,867 million yen to 4,522 million yen. Despite the return to profitability, the company maintained a policy of no dividend payments for the second quarter and has not yet determined a forecast for year-end dividends. Operating within a single segment of online mobile gaming, the company noted that its business environment is characterized by rapid short-term changes. Consequently, management provides rolling quarterly forecasts rather than full-year projections. For the cumulative third quarter ending September 30, 2025, the company expects net sales of 12,639 million yen and an operating profit of 1,834 million yen. The results were prepared in accordance with Japanese GAAP and reflect adjustments in capital surpluses following changes in investment ratios related to specific production committees.

investment funding japan+1

AimingAug 2025

Report

Digital Market Index: Q2 2025

The global digital landscape reached a significant milestone in the second quarter of 2025, as in-app purchase revenue hit a record $40 billion. This period marked a historic structural shift in the mobile economy, with non-gaming applications accounting for 52% of total consumer spending, surpassing mobile games for the first time. While total downloads stabilized at 37 billion, the market displayed clear signs of maturation; gaming downloads contracted by 6.8% year-over-year, while AI-driven productivity tools and short-drama streaming platforms emerged as the primary engines of growth. The United States maintained its position as the premier revenue market at $15 billion, though emerging regions such as Brazil and various African nations are increasingly vital for download volume and monetization expansion. Within the gaming sector, Strategy titles overtook RPGs as the highest-grossing category, achieving a 23% year-over-year increase. However, the most significant individual performance came from ChatGPT, which became the fastest application to reach one billion downloads and secured a position among the top five global revenue earners. This surge in AI utility was mirrored in the advertising sector, where U.S. digital ad spend rose 12% to $34 billion. Major technology firms including Microsoft, Google, and Adobe significantly increased their marketing budgets to promote AI integrations like Copilot, contributing to a landscape where social media maintains a 72.5% share of total ad spend. Retail media has solidified its role as a critical advertising channel, with U.S. impressions rising 29% to 65 billion across various retailers. Despite this broad growth, Amazon remains the undisputed leader in the space, generating nearly 80 billion impressions and outperforming all other tracked retailers combined. These findings are supported by expanded tracking capabilities across key Asian markets and diverse digital channels, though the data specifically excludes certain year-over-year Amazon metrics due to recent tracking implementation. Overall, the quarter reflects a pivot toward high-utility AI applications and a diversifying advertising ecosystem dominated by social and retail platforms.

market-analysis global mobile+1

Sensor TowerAug 2025

Financial

Summary of Financial Results for Second Quarter (First Half) of Fiscal Year Ended December 31, 2025

KLab Inc. experienced a challenging first half of the fiscal year ending December 31, 2025, characterized by a 12.9% year-over-year revenue decline to 3,161 million yen and a substantial net loss of 4,748 million yen. This loss was primarily driven by a 4.43 billion yen impairment on software in progress, which contributed to a sharp reduction in total assets from 15.7 billion yen to 10.9 billion yen. Despite these pressures, the game business segment achieved a profit of 313 million yen, and operating losses showed slight improvement compared to the previous year. Due to ongoing volatility and the difficulty of projecting future performance, no full-year forecast has been provided, and interim dividends have been suspended. To stabilize its financial position and pivot its corporate strategy, the firm executed several capital-raising and restructuring initiatives. These included the sale of the subsidiary GlobalGear for 1.1 billion yen and the issuance of new stock acquisition rights. These rights are tied to rigorous performance hurdles, requiring the company to achieve over 1,000 million yen in non-game revenue and a market capitalization exceeding 10 billion yen before they can be exercised. These measures are designed to incentivize a recovery in market value and diversify revenue streams beyond traditional mobile gaming. Management remains focused on achieving profitability through aggressive cost-cutting, workforce optimization, and a refined development pipeline. While the company has faced four consecutive years of operating deficits and delays in the release of EA SPORTS FC™ TACTICAL, it maintains that there is no material uncertainty regarding its status as a going concern. Future growth is predicated on the successful launch of new projects, including a My Hero Academia title and an expansion into the hybrid casual gaming market. This strategic shift aims to balance the high-risk nature of major game development with more sustainable, diversified business operations.

investment market-analysis japan+1

KLabAug 2025

Report

Vorhaus Digital Strategy Study: All Findings 2025

The digital landscape in the United States has reached a pivotal turning point as smartphones and connected televisions officially surpass traditional broadcast media as the primary vehicles for entertainment. With smart TV penetration reaching 63% and subscription services now more prevalent than cable or satellite, the American household is firmly rooted in a digital-first ecosystem. This transition is fueled by a surge in spending among younger consumers aged 18–34, who have increased their annual digital media expenditure by $235 over the past year. While the average household maintains 3.5 subscription video services, a growing trend of "subscription cycling" suggests consumers are becoming more price-sensitive and strategic with their digital commitments. Gaming has emerged as a near-universal activity, with 80% of the population engaging across various platforms and over half of the country playing mobile games daily. The industry is seeing a significant rise in social and cloud gaming, alongside a burgeoning interest in user-generated content and non-programmer creation tools. Although traditional game discovery channels are losing influence, total annual in-game spending has risen dramatically. Notably, 70% of computer gamers now spend $30 or more annually, and there is a growing consumer appetite for the ability to trade virtual goods between different titles, potentially facilitated by blockchain technology. Emerging technologies reveal a stark generational divide in adoption and sentiment. While the 18–34 demographic shows double-digit increases in familiarity and interest regarding the Metaverse and Virtual Reality, interest in Augmented Reality has declined sharply across all age groups. Cryptocurrency remains a niche expertise, yet a significant portion of younger investors plan to commit substantial capital to the sector in the coming year. Despite these advancements, privacy remains a critical barrier; over 60% of Americans express deep concerns regarding information security and the use of personal data for advertising. This tension between high digital engagement and data anxiety defines the current state of the American digital consumer.

market-analysis player-behavior mobile+1

Vorhaus AdvisorsAug 2025

Financial

Conference Call Q2 2025

Modern Times Group MTG AB reported significant financial expansion for the second quarter of 2025, primarily driven by the strategic consolidation of Plarium and robust organic performance. Net sales increased by 117% in constant currencies year-over-year, reaching 2,911 SEKm. While reported sales growth was slightly tempered by a 14% negative foreign exchange impact, the company achieved 9% organic growth. This organic momentum was fueled by key titles including Warhammer 40,000: Tacticus, F1 Clash, Heroes of History, and the Word Games portfolio. Profitability remained strong with an adjusted EBITDA of 640 SEKm, representing a 50% increase year-over-year. The company maintained a healthy adjusted EBITDA margin of 22%, even as it continued to invest in growth initiatives and marketing. Operational cash flow for the quarter stood at 325 SEKm, contributing to a last-twelve-months free cash flow of 1,045 SEKm. Despite a significant earnout payment of 1,074 SEKm during the period, the group maintained a stable financial leverage ratio of 1.63x net debt to adjusted EBITDA. User metrics showed positive trends, with Daily Active Users (DAU) rising to 10 million, influenced by the Plarium acquisition and the geographic expansion of Word Games. Average Revenue Per Daily Active User (ARPDAU) also saw growth, reaching 4.5 SEK. Looking ahead, the group maintained its full-year 2025 outlook, projecting organic sales growth between 3% and 7% and an adjusted EBITDA margin between 21% and 24%. The strategy remains focused on disciplined marketing investments to drive organic growth across both new and established gaming franchises.

investment market-analysis mobile+1

Modern Times GroupAug 2025

Financial

FY03/2026 1Q Consolidated Financial Results: Japan

Drecom Co., Ltd. reported its consolidated financial results for the first quarter of the fiscal year ending March 2026, covering the period from April 1, 2025, to June 30, 2025. The company’s primary mission centers on global entertainment expansion through the integration of intellectual property and technology. The financial results reflect a period of significant revenue growth offset by substantial impairment losses, leading to a net loss for the quarter. Total revenue for the first quarter reached 4,466 million yen, representing a 110.4% increase compared to the same period in the previous year. This growth was largely driven by the performance of the mobile game title Wizardry Variants Daphne. Despite this revenue surge, the company recorded an operating loss of 81 million yen and an ordinary loss of 107 million yen. A major factor in the quarterly performance was an extraordinary impairment loss of 1,563 million yen, attributed to the reassessment of future earnings for a mobile game title released in the previous fiscal year that performed below expectations. Consequently, the quarterly net loss attributable to owners of the parent company totaled 1,799 million yen. The company operates across two primary segments: the Game Business and the Content Business. The Game Business generated 4,327 million yen in sales, though segment profit declined by 51.6% due to increased variable and fixed costs associated with new title releases. The Content Business, which focuses on publishing and merchandise, saw revenue rise to 155 million yen, with a reduced segment loss of 204 million yen as the company continues to invest in new business areas. Following these results, the company has revised its full-year consolidated earnings forecasts for the fiscal year ending March 2026.

market-analysis investment japan+2

Drecom Co.Jul 2025

Report

Mobile Game Feature Impact Spotlight

Sensor Tower introduces Game IQ Deep Tags, a taxonomy of 70 specialized markers designed to analyze the impact of specific mobile game features on market performance. These tags are categorized into gameplay, monetization, engagement, and social elements, providing developers with a framework to benchmark competitor roadmaps and identify high-value feature sets. The analysis covers the top 1,000 mobile games globally from Q2 2024 through Q1 2025, a segment representing 16 billion downloads and $67 billion in consumer spend. The findings reveal that feature density does not always correlate with market dominance. In the casual puzzle genre, titans like Royal Match and Candy Crush Saga utilize fewer luxury features, such as voice acting or cinematic cutscenes, compared to competitors like Gardenscapes, suggesting that core gameplay often outweighs feature volume. Conversely, in the mid-core RPG and strategy sectors, comprehensive monetization and engagement systems are standard. For instance, Age of Empires Mobile demonstrates high revenue per download by utilizing nearly all available monetization tags, while top RPGs leverage IP collaborations and recurring task systems to maximize player retention and session length. The research identifies significant growth opportunities in the hybridcasual segment, where features like in-app purchase (IAP) bundles remain underutilized despite correlating with a $1.77 increase in lifetime revenue per download. Additionally, portfolio analysis of top publishers like Tencent, Scopely, and King shows a universal prioritization of login systems to track player data, while specific mechanics like "monetized retries" remain niche to casual puzzle specialists. Ultimately, the data suggests that strategic feature implementation, rather than exhaustive adoption, is the primary driver of commercial success across different mobile gaming verticals.

market-analysis global mobile+1

Sensor TowerJun 2025

Report

Southeast Asia: Mobile Game Market Insights 2025

Southeast Asia solidified its position as the world’s second-largest mobile gaming market by downloads in early 2025, reaching 1.93 billion installs. While the region currently ranks seventh globally in revenue at $625 million, it demonstrates significant monetization potential fueled by expanding digital payment infrastructure and rising smartphone penetration. Indonesia serves as the primary volume driver with 870 million installs, while Thailand leads the region in consumer spending, generating $162 million. This growth is increasingly supported by publishers based in Singapore and Vietnam, who have emerged as a dominant global force, contributing over 5.8 billion installs to the international market through a mix of hypercasual hits and competitive titles. Market dynamics reveal a shift toward high-engagement genres and localized content strategies. Although casual arcade and simulation games drive the highest download volumes, monetization is concentrated in Strategy, MOBA, and RPG segments. Mobile Legends: Bang Bang remains the regional revenue leader, sustained by hyper-local live operations and community engagement. Simultaneously, the 4X Strategy genre is experiencing rapid expansion, highlighted by a 77.7% revenue surge for titles like Last War: Survival. Conversely, traditional MMORPGs have seen a decline of nearly 20%, making way for Open World Adventure RPGs and sophisticated strategy games that leverage deep social and competitive mechanics. The regional landscape is characterized by distinct national preferences and the global expansion of local firms. Vietnam has become a powerhouse for survival-themed hypercasual games, while Thailand shows a unique affinity for realistic sports simulations. Established titles like Garena Free Fire continue to dominate global charts by blending cultural relevance with nostalgic collaborations. Ultimately, the region’s trajectory is defined by a transition from high-volume downloads to sophisticated monetization, driven by a combination of community-led activations and the strategic global influence of Southeast Asian publishers.

market-analysis mobile southeast-asia+3

Sensor TowerJun 2025

Report

The Xsolla Report: State of Play Q2 2025

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

market-analysis monetization market-forecast+2

XsollaJun 2025

Report

Q2 2025 Gaming Ad Snapshot

The snapshot presents a mid‑year overview of mobile gaming advertising activity, emphasizing the scale of creative assets, audience composition, and platform performance in the second quarter of 2025. Leveraging MarketIQ’s ad‑intelligence engine, which indexes more than three billion ads, the analysis groups campaigns by image, video, and playable formats to surface benchmark performance and creative inspiration for marketers. A core finding is the gender split of the active audience, with males accounting for roughly 61 % and females 38.5 %, while an insignificant 0.8 % remain unclassified. Google Ads dominates the network landscape, followed by Facebook Ads, reflecting the primary channels through which gaming promotions are delivered. Creative trends highlighted include senior‑focused Mahjong titles, free‑to‑play shooters, and swipe‑based games, illustrating a diversification of themes and monetisation cues such as “No Wifi Needed” and “Get Free Robux.” Campaign metrics reveal a typical lifecycle of 13 million impressions expanding to 47 million, underscoring the rapid scaling potential of high‑performing assets. The data set draws from approximately 250 000 active campaign ads, providing a robust sample for benchmarking. Overall, the snapshot underscores the importance of data‑driven creative optimisation in mobile gaming, recommending that advertisers exploit MarketIQ’s extensive repository to identify top‑performing formats, refine copy, and align with the prevailing gender distribution and platform preferences observed in Q2 2025.

in-game-advertising user-acquisition mobile+1

MarketIQJun 2025

Financial

Year-End Report 2024

G5 Entertainment’s performance throughout 2024 reflects a strategic pivot toward profitability and direct-to-consumer distribution despite a contraction in overall net turnover. While annual revenue declined to SEK 1,134 million from the previous year’s SEK 1,320 million, the fourth quarter signaled a potential stabilization with the first sequential quarterly growth in USD terms since 2021. This financial resilience is underpinned by a significant expansion in gross margins, which reached 69.1%, and a 214% surge in quarterly EBIT. These gains are primarily attributed to the increasing prominence of the G5 Store, which now facilitates 19% of net revenue by bypassing traditional third-party platform fees. The company’s operational focus has shifted toward a more concentrated, high-value player base. Although monthly and daily active user counts saw double-digit declines, the average revenue per paying user rose to USD 65.7, suggesting that the portfolio—led by titles such as Sherlock and Hidden City—is successfully retaining loyal, monetizing audiences. Geographically, North America continues to be the primary revenue driver at 61% of the total market share, followed by Europe at 27%. This regional stability, combined with disciplined user acquisition spending and a 24-month amortization cycle for research and development, has bolstered the group’s cash position to SEK 275.5 million. The year concluded with a strong emphasis on shareholder returns, evidenced by a proposed dividend of SEK 8.0 per share, representing over half of the annual net profit. By leveraging non-IFRS metrics to track unique user engagement and gross revenue per payer, the group maintains a granular view of its free-to-play ecosystem. Ultimately, the transition toward internal payment platforms and the optimization of marketing expenses have allowed for improved earnings quality and a robust balance sheet, even as the broader mobile gaming market faces top-line pressure.

monetization market-analysis global+1

G5 Entertainment ABJun 2025

Financial

Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2025 (Japanese GAAP)

Aiming Inc. reported a significant financial turnaround in its consolidated results for the first quarter of the fiscal year ending December 31, 2025. Covering the period from January 1 to March 31, 2025, the results show a transition from a loss-making position to profitability. Net sales reached 5,168 million yen, a 12.2% increase year-over-year. Operating income swung from a 149 million yen loss in the previous year to a profit of 1,352 million yen, while net income attributable to owners of the parent reached 362 million yen, compared to a 346 million yen loss in the same period of 2024. The performance was driven by the stability of existing titles and the strategic management of new releases within the competitive smartphone online game market. Key contributors included Dragon Quest Tact, which maintained active and paying user bases through its 4.5-anniversary event, and The Eminence in Shadow: Master of Garden. The company also launched WIND BREAKER: Heroic Spirits in March 2025. Despite high development costs and intensifying competition from high-quality overseas titles and major IP-based games, Aiming successfully optimized its business schemes and expanded its title portfolio. Financially, the company strengthened its position, with total assets increasing to 8,193 million yen and the equity ratio rising to 75.5%. Cash and deposits saw a substantial increase of 1,689 million yen. Looking forward, Aiming issued a forecast for the first half of the fiscal year ending June 30, 2025, projecting net sales of 8,767 million yen and an operating profit of 1,469 million yen. A notable strategic development involves a 549 million yen investment in KPJ Planning Co., Ltd., a keirin (bicycle racing) portal business. By acquiring a 42.85% stake, Aiming intends to apply its game development and operational expertise to the public sports betting market, seeking to diversify revenue streams beyond the traditional online gaming sector.

investment funding japan+1

AimingMay 2025

Financial

Kakao Games Q1 2025 Earnings Results

Kakao Games reported a significant downturn in financial performance for the first quarter of 2025, driven primarily by a lack of new releases and the natural decline of long-term mobile titles. Total revenue fell to 122.9 billion KRW, representing a 31.1% decrease year-over-year and a 7.8% decline from the previous quarter. This revenue contraction led to an operating loss of 12.4 billion KRW and a net loss of 33.4 billion KRW, continuing a trend of deficit from the end of 2024. The mobile segment experienced the sharpest decline, with revenue dropping 41% year-over-year to 96.1 billion KRW. In contrast, the PC gaming segment provided a strategic offset, growing 72% year-over-year to reach 26.8 billion KRW. This growth was fueled by robust traffic and updates for Battlegrounds, alongside deferred revenue recognition from Path of Exile. Despite the overall revenue drop, operating expenses remained relatively high at 135.3 billion KRW. While commission fees decreased in line with lower mobile sales, marketing expenses rose 52.3% year-over-year due to pre-release promotional activities for upcoming global titles, and labor costs increased slightly following investments in global personnel. The financial position at the end of the quarter shows total assets of approximately 3.16 trillion KRW, with a notable decrease in cash and cash equivalents to 551.6 billion KRW. Although the company remains in a deficit, the net loss narrowed significantly compared to the fourth quarter of 2024, which had been impacted by one-time intangible asset impairment losses. Moving forward, the company appears focused on transitioning toward global market expansion and stabilizing its portfolio through its upcoming new release pipeline.

market-analysis monetization south-korea+2

Kakao GamesMay 2025

Report

The State of Video Gaming in 2026

The global video game industry is currently navigating a period of significant contraction and structural realignment following a decade of rapid expansion between 2011 and 2021. Real-term spending on game content has declined by approximately 12% since 2021, as the market shifts from a growth-oriented environment to a capital-constrained, zero-sum landscape. This downturn is marked by record-high layoffs, widespread studio closures, and a sharp reduction in venture capital funding. The industry is increasingly dominated by a small cohort of entrenched live-service titles that act as "black holes," consuming the vast majority of player time and financial resources, which makes the launch of new, independent titles increasingly difficult. Market dynamics are further complicated by extreme resource inflation, with AAA production budgets frequently ballooning to between $200 million and $500 million. While mobile gaming remains the primary driver of global revenue, it faces its own challenges, including declining download volumes and rising user acquisition costs. Meanwhile, the console sector shows signs of stagnation, with current-generation hardware trailing its predecessors in total unit sales. As traditional growth models stall, the industry is pivoting toward new strategies, including the integration of programmatic advertising, the adoption of generative AI to improve production efficiency, and a push toward cross-platform accessibility to maximize player retention. Geographically, the center of gravity is shifting toward Asian markets, where local developers are increasingly challenging Western incumbents with high-performing, globally resonant titles. Concurrently, the rise of user-generated content platforms like Roblox and the maturation of PC-based modding ecosystems are redefining how players engage with digital worlds. Looking forward, the industry is pinning its recovery on technological advancements in cloud computing and AI-driven development, alongside regulatory shifts that may allow developers to capture a larger share of revenue through alternative distribution channels. Success in this new era requires moving beyond traditional gameplay loops toward interconnected, persistent ecosystems that prioritize social infrastructure and long-term engagement.

market-analysis global mobile+2

EpyllionMay 2025

Financial

Summary of Financial Results for First Quarter of Fiscal Year Ended December 31, 2025

KLab Inc. reported a revenue of 1.64 billion yen for the first quarter of the fiscal year ending December 31, 2025, representing a 3.4% year-over-year increase. This growth was primarily driven by the performance of key titles such as BLEACH Brave Souls and Haikyu!! Fly High, which helped the game business segment return to a profit of 217.9 million yen. Despite these operational gains and significant reductions in personnel and outsourcing costs, the company recorded an overall operating loss of 288 million yen and a net loss of 479 million yen. While these figures show improvement compared to the much larger losses of the previous year, the company has declined to provide a consolidated earnings forecast due to high market volatility. The financial position remains precarious, characterized by four consecutive periods of operating losses, negative cash flow, and breaches of financial covenants. These factors have led to the disclosure of material uncertainty regarding the ability to continue as a going concern. To stabilize its capital base, the company issued 650 million yen in unsecured bonds and new stock acquisition rights through Macquarie Bank. Total assets rose to 16.1 billion yen, largely due to a 7.47 billion yen investment in software in progress, signaling a heavy commitment to future development despite current liquidity pressures. To address these systemic challenges, a strategic pivot is underway that includes a voluntary retirement program for approximately 100 employees to further lean out operations. The long-term recovery plan focuses on transitioning toward a hybrid casual game strategy and exploring new business ventures to diversify revenue streams. By combining aggressive cost-cutting with a shift in product focus, the objective is to mitigate the ongoing financial instability and establish a more sustainable business model within the competitive mobile gaming landscape.

investment monetization game-publishing+2

KLabMay 2025

Report

State of Mobile Gaming 2025

The global mobile gaming market entered a period of mature recovery in 2024, characterized by a strategic pivot toward live services and high-value player retention. While total downloads declined by 6.6%, global in-app purchase revenue grew by 4% to reach $82 billion. This growth was primarily driven by North America and the Middle East, offsetting spending declines in Asia. The industry has transitioned into a "live operations" era, where 84% of all revenue is generated by games utilizing continuous updates and seasonal events. This shift is further evidenced by a 50% decrease in new game releases since 2020, as publishers prioritize high-quality core titles over volume. Genre performance highlights a market dominated by Strategy and RPG titles, which collectively generated over $34 billion in 2024. Action games emerged as the fastest-growing category with a 46% revenue increase, fueled by breakout hits like Last War: Survival. Despite the dominance of established franchises, a record 11 games surpassed $1 billion in annual consumer spend, including MONOPOLY GO!, which secured the top global position. The market is also seeing a demographic shift, particularly in the United States, where the 18-24 age group now represents 18% of the player base, up from 13% in 2022. Marketing strategies have evolved to combat rising user acquisition costs, with a significant move toward high-intent creative content and short-form video platforms. TikTok experienced a 67% year-over-year growth in social ad share, while mid-core developers nearly doubled their impression share on social networks. To maintain profitability, publishers are increasingly leveraging external web stores, celebrity partnerships, and localized cultural influencers, such as virtual YouTubers in the Japanese market. These trends underscore a broader industry movement toward sophisticated monetization models and IP-driven growth in an increasingly concentrated competitive landscape.

market-analysis monetization mobile+1

Sensor TowerMar 2025

Report

MTG Annual and Sustainability Report 2024

Modern Times Group (MTG) transitioned through a transformative period in 2024 and early 2025, shifting from a mid-sized gaming collective to a top-ten mobile games developer in Western markets. The group reported 2024 revenues of SEK 6,015 million, representing 3% currency-adjusted growth, supported by a robust adjusted EBITDA margin of 28%. While operational performance remained steady, the group recorded a net loss of SEK 210 million for the year, primarily driven by non-cash financial adjustments related to the revaluation of earnout liabilities and an exceptionally high effective tax rate of 214.7%. The strategic centerpiece of this period is the February 2025 acquisition of Plarium Global Ltd for USD 655 million. This move is expected to double MTG’s revenue and EBITDA, adding the high-performing *RAID: Shadow Legends* IP to a portfolio that includes established franchises from PlaySimple, InnoGames, and Ninja Kiwi. Beyond scaling the "Gaming Village" model, the acquisition integrates Plarium’s proprietary "Flow Platform" tools, enhancing the group’s marketing, direct-to-consumer capabilities, and cross-promotion efficiency across its mid-core and casual segments. Geographically and operationally, MTG maintains a global footprint with major hubs in India, Germany, and the UK. The group’s financial position remains liquid, ending 2024 with SEK 3.5 billion in cash and a negative net debt, despite active share buyback programs totaling SEK 500 million. Sustainability and governance also saw increased focus, with the establishment of 2032 carbon reduction targets and a commitment to increasing female and non-binary representation in the workforce from 28% to 40%. Despite risks associated with platform dependency and the concentration of revenue in key titles like *Forge of Empires*, the group’s aggressive M&A strategy and centralized synergetic layer position it for significant scaling in the global mobile gaming industry.

mergers-acquisitions investment mobile+4

Modern Times GroupMar 2025

Report

Mobile App Trends: 2025 Edition

The mobile app economy is entering a significant scaling phase, with global consumer spending projected to reach $626 billion by 2030. This growth is underpinned by a 2024 surge in app installs and a notable rise in App Tracking Transparency opt-in rates to 35%, suggesting that privacy-centric measurement is successfully rebuilding user trust. As the industry moves into 2025, the integration of artificial intelligence and machine learning has transitioned from a conceptual trend to an operational necessity, particularly for predictive analytics and campaign optimization across diverse platforms like Connected TV and in-app advertising. Mobile commerce currently serves as the primary driver of the digital landscape, accounting for 73% of global e-commerce sales with anticipated 2025 revenues of $2.5 trillion. While e-commerce app installs grew by 17% in 2024, the sector must navigate rising acquisition costs, which have reached an average of $3.44 per install. This financial pressure is particularly acute in emerging markets such as MENA and LATAM, where reliance on paid media is increasing. Simultaneously, the mobile gaming sector remains the most popular category, expected to reach $126.1 billion in 2025. Although gaming faces retention challenges in North America and Europe, strategy games have seen an 83% growth in installs, and global session lengths have extended to over 30 minutes. The financial services vertical is also experiencing a period of robust expansion, especially within the APAC and LATAM regions. Global session lengths for finance apps have risen to 6.66 minutes, while average revenue per monthly active user has climbed significantly to $4.10. Across all sectors, the 2025 outlook emphasizes a shift toward omnichannel strategies and a rebound in mobile-first holiday shopping. Success in this evolving market requires developers to balance aggressive growth in high-potential regions with sophisticated, privacy-compliant data strategies to maintain long-term user engagement.

market-analysis global mobile+1

AdjustMar 2025