Monetization Reports | Game Industry Library

Store Intelligence Data Digest: Q2 2023

Global mobile app performance in the second quarter of 2023 reflects a stabilizing market, with total downloads reaching 34.3 billion despite a marginal 1.5% year-over-year decline. While TikTok maintained its long-standing position as the most downloaded app globally, the quarter was defined by the rapid expansion of the shopping platform Temu, which achieved 74 million downloads and secured a top-ten global ranking. In the gaming sector, established titles like Subway Surfers and Ludo King continued to lead worldwide, though new entries such as MONOPOLY GO! and Honkai: Star Rail demonstrated significant momentum by dominating Western markets and leveraging existing brand equity. Geographic trends highlight a shift in growth centers, as traditional markets like the United States, China, and the United Kingdom experienced download contractions. In contrast, India solidified its status as the world’s largest mobile market, accounting for 24% of global Google Play downloads. Emerging markets also showed resilience, with the App Store seeing double-digit growth in Brazil and Indonesia. While Meta and Google remain the preeminent global publishers, Meta faced regional headwinds in Asia due to regulatory shifts in India that impacted Instagram and Facebook adoption. Sector-specific analysis reveals a transition toward gamification and retention-focused strategies. Education apps, led by Duolingo, successfully utilized streak features to drive high user engagement, whereas the food delivery and streaming sectors faced saturation. Food delivery downloads fell below pre-pandemic levels, and streaming services pivoted toward aggressive monetization and advertising strategies to combat slowing acquisition. Although Netflix maintains a superior 79% retention rate, its low new-user acquisition rate of 3% underscores the broader challenge of maintaining growth in a mature digital landscape.

market-analysis global mobile+1

Sensor TowerJul 2023

How DLC boosts engagement for PC and console games

Downloadable content (DLC) serves as a critical driver for player engagement and long-term monetization in the PC and console gaming sectors. Analyzing over 1,600 content releases between April 2020 and April 2023 across 37 major markets, data indicates that DLC launches provide an average monthly active user (MAU) boost of 11%. This impact is most pronounced for medium-sized games with 250,000 to 2 million MAU, which experienced a 22% growth during launch months. While these releases successfully spike interest, engagement typically declines in the months following the initial release, highlighting the necessity of a consistent content pipeline to maintain player interest. Monetization trends in the United States further underscore the importance of post-launch content. In 2022, DLC accounted for 13% of PC revenue and 7% of console revenue, contributing to a landscape where in-game spending represents nearly half of total industry earnings. Strategy games emerged as the top-performing genre for DLC-driven growth, seeing a 30.5% average increase in MAU, followed by role-playing and adventure titles. These findings suggest that genres requiring deep mechanical updates or narrative expansions benefit most from the DLC model. Case studies of The Sims 4 and Dead Cells illustrate diverse strategic approaches to content delivery. Electronic Arts successfully utilized a "free-to-play" transition combined with a free base-game update to prime the audience for the "Growing Together" expansion, resulting in its most successful launch week since 2015. Conversely, Dead Cells demonstrated the power of high-profile collaborations, such as the Castlevania DLC, which drove a 225% MAU increase. However, the data also reveals a retention challenge, as a significant majority of players who engage with new DLC do not remain active in subsequent non-update months. This emphasizes that while DLC is a potent tool for re-acquisition and revenue, sustaining a permanent player base remains a complex hurdle for live-service titles.

monetization player-behavior pc+1

NewzooMay 2023

Mobile Game Market Review October 2023

The mobile gaming market in October 2023 was characterized by a heavy reliance on seasonal Halloween content and innovative social features to drive monetization and engagement. Analysis of the period reveals that major titles across the casual and midcore segments utilized limited-time events, crossover collaborations, and experimental gacha mechanics to bolster revenue. Geographically, the review focuses on major global markets, specifically the United States, Japan, and China, highlighting how regional preferences dictate event structures, such as the prevalence of social multi-gachas and location-based business discounts in the Japanese market. In the casual segment, developers increasingly integrated social and competitive mechanics to maintain player interest. Notable examples include Pokémon Go’s introduction of a four-player party system and Eggy Party’s "Pedestrian Street" mode, which emphasizes social hangouts over core gameplay. Data indicates that titles like My Perfect Hotel successfully improved revenue trends by balancing download fluctuations with permanent boost systems and specialized battle passes. Furthermore, the market saw the rise of "challenging" platforming content in the party royale genre, drawing inspiration from viral PC trends to test player perseverance. The midcore sector demonstrated the power of long-term live operations and high-profile collaborations. Monster Strike’s 10th-anniversary celebrations in Japan utilized celebrity partnerships and anime crossovers to maintain its top-tier status. Simultaneously, new entries such as Dungeon Hunter 6 and Reverse: 1999 achieved significant chart positions shortly after launch, with the latter reaching the top 100 in both the US and Japan. The findings suggest a market shift toward hybrid gameplay—such as combining merge mechanics with match-3 puzzles—and the successful localization of high-performing Chinese extraction shooters for Western audiences. Overall, the data underscores that consistent content overhauls and the strategic timing of feature updates remain the primary drivers for scaling performance in a competitive mobile landscape.

market-analysis mobile global+1

GameRefineryApr 2023

Gaming Spotlight 2023 Review

The global gaming market in 2023 was defined by a complex interplay between mobile contraction and steady growth in the PC and console sectors. While mobile remains the industry’s largest segment, consumer spending fell 2% to $108 billion, a decline attributed to macroeconomic instability and privacy-related shifts such as Apple’s App Tracking Transparency framework. Conversely, the PC and home console markets expanded by 4% and 3% respectively, bolstered by the rising popularity of subscription services. Handheld gaming also experienced a demographic fragmentation, with the Nintendo Switch Lite attracting a younger, female-leaning audience while the Steam Deck appealed to older, male gamers. Emerging technologies like cloud-streamed gaming are gaining significant traction, projected to reach $3.8 billion in revenue with mobile devices facilitating over a quarter of global streaming hours. Success in the first half of 2023 was concentrated among high-performing titles that leveraged Gen Z engagement and sophisticated in-app purchase models. Monopoly GO and Honkai: Star Rail emerged as standout performers, generating hundreds of millions in revenue within their first months of release. Established franchises like Royal Match and FIFA Soccer also reached significant lifetime milestones, surpassing $1.7 billion and $1 billion respectively. These successes occurred despite a challenging user acquisition landscape where gamer sentiment toward traditional advertising formats has turned increasingly negative. While rewarded video and playable ads remain the most tolerated formats, overall ad fatigue is rising due to market oversaturation. To navigate this evolving environment, the industry must adapt to shifting privacy standards and the impending implementation of Google’s Privacy Sandbox. Although data suggests that privacy frameworks have not directly damaged iOS ad sentiment, the general decline in ad acceptance necessitates a move toward more diverse formats and contextual market data. Strategic focus is shifting toward combating rising acquisition costs through high-value player engagement and the optimization of cross-platform experiences. As the market stabilizes, the integration of cloud services and the continued dominance of mobile-first economies in emerging regions will likely dictate the next phase of global industry growth.

market-analysis monetization in-game-advertising+2

data.aiJan 2023

The Xsolla Report: The State of Play

The global gaming market is undergoing a structural transformation driven by multiplatform integration and the rapid evolution of financial technologies, with total revenues projected to reach $211.2 billion by 2025. A significant catalyst for this growth is the rise of real-time payments, which are expected to account for 28% of global electronic transactions by 2027. This shift is particularly pronounced in emerging markets across the MEA and LATAM regions, where systems like India’s UPI and Brazil’s PIX are facilitating new revenue streams. To bypass traditional platform commissions and rising acquisition costs, developers are increasingly adopting mobile web shops and hybrid monetization models, including Buy Now, Pay Later services, which are forecasted to reach a $309 billion market value by 2030. Technological advancements in cloud gaming and artificial intelligence are further reshaping the industry landscape. Cloud gaming is anticipated to reach 2.5 billion users by 2024, though it continues to face technical challenges regarding latency and infrastructure. Simultaneously, generative AI is becoming a fundamental development pillar, with over 50% of top studios expected to utilize the technology by 2024 to improve efficiency by up to 30%. Within the next decade, AI is projected to support more than half of the entire game creation process, significantly reducing production timelines and costs. The industry is also pivoting toward a more interconnected ecosystem where cross-platform capabilities are a primary consumer demand, supported by 87% of multiplayer gamers. This integration, combined with advancements in virtual reality and blockchain, is fueling the expansion of the metaverse, which is forecasted to reach a $710 billion valuation by 2027. As privacy regulations and shifting ad efficiencies challenge traditional growth strategies, the sector is prioritizing flexible payment solutions and immersive, cross-play environments to maintain global momentum.

market-analysis monetization cloud-gaming+1

XsollaJan 2023

From Hyper to Hybrid: Hypercasual Gaming Trends 2023

The mobile gaming landscape is undergoing a significant structural shift as developers transition from hyper-casual models toward hybrid-casual strategies. This evolution is driven by a marked decline in ad revenue profitability, influenced by the implementation of App Tracking Transparency on iOS, shifting post-pandemic user behaviors, and increased selectivity from major publishers. To maintain sustainability, developers are increasingly integrating in-app purchases and meta-gameplay components into their titles while opting for self-publishing models to retain greater control over their assets. Data from 2022 reveals a downward trend in ad impressions and eCPMs across both Android and iOS platforms. Conversely, the volume of in-app purchases grew on both operating systems, signaling a successful pivot toward diversified monetization. Geographically, the United States remains the dominant market, ranking first for both ad revenue and in-app purchases across platforms. India emerged as the leading territory for total installs on Android, highlighting the importance of emerging markets for scale, even as monetization remains concentrated in Tier 1 regions. The competitive landscape for ad networks and monetization channels shows distinct leaders. Apple Search Ads dominates the iOS ecosystem, securing the top position in multiple categories including retention and lifetime value. On Android, AppLovin and ironSource lead the market. AppLovin specifically stands out as the top monetization channel by total ad revenue on both operating systems. For eCPM performance, Meta Audience Network and ironSource lead on Android and iOS respectively. These findings are based on anonymized data collected throughout the 2022 calendar year, utilizing a weighted average methodology. The analysis focuses on high-scale performance, only including countries and ad networks that exceeded a threshold of 25 million installs. This comprehensive view underscores a broader industry movement where the traditional reliance on pure advertising is being replaced by a more balanced, hybrid approach to game design and revenue generation.

market-analysis monetization user-acquisition+1

TenjinJan 2023

In-Game Spending: Parents' Supervision of In-Game Spending 2023

The research investigates how parents supervise and manage their children’s in‑game purchases, tracking trends across five European markets—United Kingdom, France, Germany, Spain and Italy—over four survey waves (2018, 2019, 2020 and 2023). Each wave surveyed adult parents or guardians of children who play video games, with sample sizes ranging from 962 in 2018 to 2,808 in 2023, providing a broad cross‑section of the region’s gaming households. Findings show that three‑quarters of parents consistently report that their children do not spend on in‑game extras, a proportion that has remained stable since 2020. Among the minority who do spend, the average monthly outlay rose from €33 in 2020 to €39 in 2023, reflecting a €6 increase that aligns with inflation. Most spending (64 %) falls within the €1‑20 range, with the most popular items being gameplay‑impacting content (34 %) and decorative or cosmetic items (just under one third). Loot boxes and other unknown‑reward items remain relatively unpopular. Parental oversight is high: nine‑in‑ten parents of spending children have some form of agreement, half of which are explicit—either seeking permission (38 %) or setting limits (23 %). Preferred monitoring tools include credit‑card bill checks, parental‑control settings, and two‑factor authentication, though 44 % of parents who avoid controls deem them unnecessary and 32 % find them difficult to activate. Awareness of in‑game currency and loot boxes among all players (ages 11‑64) is also limited, with only 9 % having purchased in‑game currency and 4 % having bought loot boxes. The study’s methodology relies on standardized questionnaires administered to representative adult panels in each country, ensuring comparability within each survey year while noting that cross‑year comparisons are constrained by methodological changes.

monetization player-behavior market-analysis+1

Video Games EuropeJan 2023

Gaming Report 2023

The global gaming industry in 2023 is defined by a strategic shift toward development efficiency and long-term player retention. Studios are increasingly prioritizing speed to market, with 62% of indie developers now shipping titles in under a year. This acceleration is largely fueled by the widespread adoption of premade assets and a reduction in average developer hours. While large studios are expanding their reach through a 16% increase in multiplatform development, indie studios remain predominantly focused on single-platform desktop releases. Simultaneously, there is a notable pivot toward mobile production, where global daily active users have risen by 8% despite a slight decline in the number of paying players. Monetization strategies are evolving to address this shift in player behavior, moving toward a balanced model where ad-supported structures and in-app purchases hold nearly equal weight. To ensure financial viability, 70% of studios now integrate monetization and LiveOps within the first 30 days of development. This early focus on the product lifecycle has contributed to a 33% increase in the average game lifespan, supported by frequent core content updates and a 27% rise in battle pass adoption. Emerging markets, particularly in regions like Kazakhstan, are driving a 15.7% year-over-year increase in total game builds, signaling a lower barrier to entry for new creators. Looking forward, the industry is embracing generative AI and user-generated content to streamline workflows and deepen engagement. The rise of "hybrid-casual" mobile games reflects a broader trend of blending accessible mechanics with sophisticated retention loops. Success in the current economic climate requires rigorous scope control and a transition from simple user acquisition to the maintenance of long-term player relationships. By leveraging achievements, community building, and real-time operational updates, developers are successfully extending the relevance and profitability of their titles in an increasingly competitive global market.

market-analysis global mobile+2

UnityJan 2023

The State of Mobile Gaming 2023: Mobile Gaming Market Trends and Top Titles in the U.S., Europe, and Asia

The global mobile gaming landscape underwent a significant structural transition in 2022, characterized by a 14% decline in total player spending from its 2021 peak alongside a stabilization of download volumes at approximately 13.8 billion per quarter. While major markets such as the United States, Japan, and South Korea experienced revenue contractions, China emerged as the second-largest market globally, and India solidified its position as the leader in download volume, accounting for 17% of total installs. This period marked a definitive shift away from the hypercasual genre, which saw an 18% decline in downloads due to rising user acquisition costs and broader economic pressures. In response to these market pressures, the industry is pivoting toward a hybridcasual model that blends accessible core mechanics with sophisticated mid-core monetization and meta-progression features. This emerging segment grew by 13% and generated $1.4 billion in revenue, driven by significantly higher player engagement than traditional casual titles. Success in the current environment is increasingly dictated by the effective use of Live Ops, which now accounts for 97% of revenue among top-grossing games. Features such as character collection and social clan systems have become essential for maintaining high engagement levels and driving long-term player retention. While established genres like RPGs and shooters faced revenue declines, the action genre grew by 9%, and subscription-based models gained momentum, exemplified by the expansion of ad-free gaming catalogs. Conversely, the crypto and NFT gaming sector experienced a sharp downturn, with downloads falling from 46 million to 29 million and revenue dropping by 35%. Despite the overall contraction in spending, the market remains larger than pre-pandemic levels, with legacy titles like Honor of Kings and Subway Surfers maintaining dominance in revenue and download rankings, respectively, across a diversifying global audience.

market-analysis monetization mobile+2

Sensor TowerJan 2023

State of Mobile Gaming 2023

The State of Mobile Gaming 2023 report outlines a pronounced shift in genre performance and monetization patterns across key global markets. Hyper‑casual downloads fell 24 % year‑over‑year in Q4 2022, while hybrid‑casual titles grew 13 % and exclusive‑access games surged 54 %. Revenue mirrored this transition: action and tabletop genres posted positive growth, whereas shooter, RPG, and casino categories experienced double‑digit declines. In Asia, RPGs dominate revenue at 39 %, whereas North America and Europe show a more diversified mix with several genres contributing at least 12 % each. Hybrid‑casual games lead in meta‑feature adoption, with 30 % of top titles deploying at least one feature compared to only 5 % of hyper‑casuals. Character Collection, the most common meta, appears in 18 % of hybrid‑casuals and lifts average playtime by 122 %, raising it to roughly two hours versus under one hour for non‑feature titles. Download growth for hybrid‑casuals was strongest in Asia (+124 M installs, +4 %) and North America (+63 M, +17 %), while overall mobile downloads remained flat year‑over‑year. Live‑ops events continue to drive engagement and revenue. Marvel Snap’s “Warriors of Wakanda,” “The Power Cosmic,” and “Happy Winterverse” each generated between $670 k and $746 k on launch day, illustrating the high value of well‑timed in‑app events. Sensor Tower’s event‑tracking tool provides publishers with granular revenue insights, enabling benchmarking against competitors and fine‑tuning future event strategies. Geographically, Europe’s top five markets—Germany, the U.K., France, Russia, and Italy—experienced a collective 6 % revenue decline to $600 million in Q4 2022, with Russia alone falling 72 % year‑over‑year after the Ukraine war. Downloads fell 8 % overall and 11 % in Russia, yet Russia remained the largest European market by volume (673 million downloads, 24 % of EU downloads). In contrast, Asia’s quarterly gross revenue fell 15 % to $9.5 billion, largely due to a 20 % drop on Google Play; downloads stayed flat at over 5.5 billion per quarter, with India leading the region by a wide margin.

market-analysis mobile monetization+1

Sensor TowerJan 2023