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Analyst Bulletin: Mobile Game Market Review November 2023

The mobile gaming market in November 2023 was characterized by the proliferation of specific event mechanics and the rise of the 3D match subgenre. Analysis of market leaders reveals that Royal Match has become a primary trendsetter for casual titles. Its "Social Win Streak" and "Digging Minigame" mechanics were widely adopted by competitors such as Monopoly GO!, Matchington Mansion, and BTS Island. Simultaneously, the success of Triple Match 3D spurred a wave of new entries in the 3D match category, including Match Factory and spin-offs from established franchises like Candy Crush. A significant shift occurred in the midcore segment, where developers increasingly experimented with pay-gated event content. Titles such as Free Fire, State of Survival, and Last Fortress: Underground implemented exclusive rewards and gameplay modes accessible only through direct purchases or premium currency top-ups. This trend suggests a strategic move toward more aggressive monetization of live events, moving away from purely engagement-based models to those requiring financial entry points for participation. Geographically, the US market saw major activity with the global launch of Warcraft Rumble, which achieved the top download spot and maintained a top-50 grossing position. In China, Soul Knight Prequel demonstrated the continued strength of the roguelite genre, reaching the top of the download charts. Other notable developments included the expansion of user-generated content via the Stumble Workshop in Stumble Guys and the rapid emergence of mobile clones inspired by the viral Nintendo Switch title, Suika Game. These findings indicate a highly reactive market where developers quickly iterate on successful mechanics and viral trends across both casual and midcore segments.

market-analysis mobile global+1

GameRefineryNov 2023

Financial

FY2024 First Quarter Financial Results

The first quarter of FY2024 reflects a transitional period characterized by a strategic pivot toward the Metaverse and Commerce segments amid a temporary downturn in investment income. Consolidated net sales reached ¥15.8 billion with an operating income of ¥1.2 billion, representing significant quarter-on-quarter declines of 22% and 75% respectively. This contraction was primarily attributed to the Investment Business, which experienced an 86% drop in sales and an operating loss of ¥0.2 billion due to a lack of large-scale distributions. Despite this volatility, the investment portfolio remains robust with ¥82.7 billion in assets under management and an 18% internal rate of return, significantly outperforming domestic venture capital benchmarks. The Game and Anime segment continues to serve as the primary revenue driver, contributing ¥11.7 billion in sales. Performance within this division was bolstered by successful anniversary events for key titles like Heaven Burns Red, though overall results were tempered by a post-peak decline in other areas. To ensure long-term stability, a pipeline of 17 titles is scheduled for release through FY2026. Simultaneously, the Metaverse segment successfully revamped its earnings structure to achieve a ¥0.1 billion operating profit, supported by improved cost efficiency in the Platform Business and aggressive expansion in the VTuber sector. Strategic diversification efforts yielded positive results in the Commerce business, which achieved profitability through the growth of SaaS-related services. While the DX business remained stagnant due to a reduction in operational projects, the broader corporate outlook remains focused on achieving ¥1.9 billion in Metaverse operating income by FY2026. With a stable balance sheet featuring ¥50.3 billion in cash and a workforce of over 1,600 employees, the organization remains positioned to meet its full-year targets by balancing mature gaming assets with emerging digital platforms and high-yield venture investments across Japan and the United States.

investment market-analysis market-forecast+2

GREENov 2023

Report

Leveling Up: State of India Gaming FY'23

The Indian gaming market demonstrated significant resilience in FY23, reaching a value of $3.1 billion with projections to hit $7.5 billion by FY28 at a 20% CAGR. This growth is increasingly driven by non-real money gaming (RMG) segments, specifically casual and midcore games, as in-app purchases and advertising revenues rise. While the RMG sector grew 33% in FY23, future growth is expected to be muted due to new tax policies and industry consolidation. The player base expanded to 568 million gamers, a 12% year-on-year increase, with 25% identified as paying users. Engagement metrics are strong, with average time spent increasing by 20% to 10-12 hours per week. India remains a global leader in game downloads, recording 15.4 billion in FY23. Notably, monetization remained stable despite the suspension of major titles like BGMI and Free Fire, as in-app purchase revenue for other titles grew by 37%. A survey of over 2,000 users reveals a 60:40 male-to-female ratio and a shift toward non-metro regions, which now account for 66% of gamers. Users are showing a higher propensity to experiment with new genres and pay for content, with 62% preferring UPI for transactions. However, 60% of users anticipate that new GST and TDS regulations will negatively impact their play frequency in the RMG segment. The regulatory landscape is evolving with the government’s recognition of esports and the establishment of the AVGC taskforce to promote India as a global development hub. Although venture capital funding decreased by 75% in 2023, mirroring global trends, strategic investments from major international entities suggest long-term confidence in the ecosystem's digital infrastructure and development capabilities.

market-analysis monetization mobile+1

Lumikai Investment AdvisorsOct 2023

Report

Integrated Report: Value Creation Story 2023

DeNA is undergoing a fundamental strategic evolution, transitioning from a primary focus on entertainment and gaming toward a diversified "Serve" approach that addresses complex social issues. This shift leverages the company’s core competencies in internet technology and artificial intelligence to drive growth across healthcare, medical digital transformation, and urban development. While the capital market historically viewed the organization as a hit-driven game company, the current strategy emphasizes a multi-segment portfolio designed for sustainable, long-term value creation. This transformation is centered in Japan, particularly through its "Home Base" in Yokohama, but maintains a global reach through international medical platforms and strategic intellectual property partnerships. Financial performance in FY2022 reflects this transition, with consolidated revenue reaching ¥134.9 billion. While the game segment faced revenue declines, prompting a shift toward a global pipeline of major IP and partnerships with Nintendo and Shueisha, other sectors showed robust growth. The Live Streaming segment, bolstered by the Vtuber app IRIAM, and the Healthcare & Medical segment, driven by the expansion of the "Join" communication platform and a health database covering 18 million people, have become significant growth engines. The company aims for ¥20 billion in healthcare revenue by FY2024, utilizing M&A and medical IoT to capture a domestic market potential valued in the hundreds of billions of yen. The organizational structure supports this diversification through a sophisticated human capital strategy and a rigorous governance framework. DeNA emphasizes autonomous career development and internal mobility to optimize its workforce across sports, AI, and healthcare initiatives. Governance is maintained through a board with 43% independent representation and a performance-linked compensation structure that aligns management incentives with shareholder interests. Furthermore, the company has integrated sustainability and risk management into its core operations, monitoring climate-related emissions and maintaining robust cybersecurity protocols to protect its expanding digital and medical data ecosystems.

market-analysis ai japan+1

DeNA Co., LtdSept 2023

Report

Store Intelligence Data Digest: Q3 2023

This analysis examines global mobile application performance during the third quarter of 2023, covering downloads across the Apple App Store and Google Play. Total worldwide downloads reached 35.1 billion, representing a slight 0.7% year-over-year decline. While App Store installs grew by 6.1% to 8.7 billion, Google Play downloads fell by 2% to 26.4 billion. The data, compiled via the Sensor Tower Store Intelligence platform, focuses on unique, per-user installs and excludes pre-installed apps and third-party Android stores. Meta emerged as the dominant publisher, driven by the July 2023 launch of Threads. The new social platform garnered nearly 40 million installs on its launch day and became the fifth most downloaded app globally for the quarter. Instagram secured the top global spot, fueled largely by the Indian market, which accounted for 51% of its new installs. In the United States and Europe, the e-commerce platform Temu maintained its leadership position, significantly outperforming competitors like Shein and Amazon in terms of download velocity. The mobile gaming sector saw Garena Free Fire reclaim the top global position with 60 million installs, surpassing long-time leader Subway Surfers. Monopoly Go showed the most significant momentum in the U.S. market with 44% quarter-over-quarter growth. Regionally, India remained the largest market by volume with 6.6 billion total downloads, more than double that of the United States. While the U.S. and China continued to lead App Store activity, Brazil showed the most robust growth on that platform with a 24% year-over-year increase. Conversely, major Google Play markets like Brazil and Indonesia saw single-digit declines in download volume during this period.

market-analysis global mobile+1

Sensor TowerSept 2023

Report

Mobile Games: State of the Market & Playtime Benchmarks Q3 2023

The analysis evaluates the current performance of the mobile‑games ecosystem, concentrating on download popularity, revenue generation, and user‑engagement metrics across key Western and Asian markets. By comparing platform‑specific behavior and regional preferences, it seeks to identify the titles and genres that drive the strongest financial returns and the longest play sessions, thereby informing strategic decisions for developers, publishers, and marketers. Casual‑puzzle and social titles dominate download charts in France, Germany, and the United Kingdom, with Monopoly Go!, Roblox and Subway Surfers leading the rankings. Revenue concentration is even more pronounced: Coin Master repeatedly tops earnings tables, delivering €5.3 million on Android in France and €6.7 million on Android in Germany. Across the surveyed territories, iOS users exhibit markedly longer sessions than Android users, with average iOS playtime ranging from 35 minutes in the United States to 51 minutes in Japan, compared with 29–44 minutes on Android. Japan records the longest sessions overall, while France shows the smallest platform gap of roughly 3.6 minutes. The titles that capture the most playtime vary by region but are largely anchored by the same franchises, such as Candy Crush and other established puzzle series. The study covers major European markets (France, Germany, UK), North America (US) and Japan, reflecting data from the most recent full‑year cycle. It spans the casual, puzzle, and social segments of the mobile‑games industry, highlighting a persistent dominance of a limited set of high‑engagement franchises and a clear platform‑based divergence in user behavior. These patterns suggest that future monetization strategies should prioritize iOS‑centric engagement tactics in markets with

market-analysis player-behavior monetization+2

AppticaSept 2023

Report

Gaming Industry Report: Q3 2023

The global gaming industry experienced a period of stabilization and strategic realignment during the third quarter of 2023, characterized by a modest recovery in consumer spending and a significant shift in investment patterns. Total market revenue reached approximately $46.5 billion for the quarter, representing a 3.2% year-over-year increase. This growth was primarily driven by the mobile segment, which accounted for 49% of total market share, followed closely by the console and PC sectors. Geographically, the Asia-Pacific region remained the largest market, contributing 46% of global revenue, while North America and Europe showed resilient growth driven by high-profile software releases and improved hardware availability. Investment activity saw a marked transition from high-volume venture capital infusions to more targeted mergers and acquisitions. Total deal value for the quarter reached $12.4 billion, though the number of individual transactions declined by 15% compared to the previous year. This trend indicates a maturing market where established players prioritize the acquisition of proven intellectual property and specialized technology over speculative early-stage investments. Furthermore, the integration of generative artificial intelligence into development workflows emerged as a critical operational focus, with 65% of surveyed studios reporting the implementation of AI tools to streamline asset production and reduce escalating development costs. The labor market within the industry faced ongoing volatility, with several major publishers announcing restructuring efforts to optimize efficiency following the rapid expansion of the previous three years. Despite these headwinds, the player base continued to expand, reaching an estimated 3.38 billion gamers worldwide. Engagement metrics remained strong, particularly in live-service titles and competitive esports, which saw a 12% increase in viewership hours across major streaming platforms. As the industry moves into the final quarter of the year, the focus remains on balancing creative innovation with fiscal discipline to navigate a complex macroeconomic environment.

market-analysis global mobile+2

KonvoySept 2023

Report

Insights into Marketing Trends of Global Mobile Games: Q3 2023

The analysis focuses on contemporary marketing dynamics within the global mobile gaming sector, emphasizing how creative diversification and platform targeting shape user acquisition performance. In the third quarter of 2023, a leading animal‑themed strategy‑lite game launched by a major publisher introduced an extensive creative slate, deploying 6,500 distinct ad assets across major ad networks. Notably, 85 % of these assets were brand‑new, reflecting a deliberate strategy to refresh visual and messaging elements at scale. This high proportion of novel creatives aligns with broader industry observations that frequent creative turnover mitigates ad fatigue and sustains click‑through rates in highly competitive markets. The data underscores the importance of deduplication processes in large‑scale campaigns, ensuring that each impression reaches a unique audience segment while preserving measurement integrity. By tracking deduplicated impressions, the campaign achieved a more accurate assessment of reach and cost efficiency, revealing that fresh creative assets can improve cost‑per‑install (CPI) benchmarks by up to 12 % compared with static creative pools. These findings suggest that investment in creative production pipelines and rapid iteration cycles yields measurable returns, especially for mid‑core titles competing for attention in saturated regions such as North America, Europe, and Southeast Asia. Overall, the evidence points to a shifting paradigm where creative volume and novelty become critical levers for growth in the mobile gaming ecosystem. Publishers that integrate systematic creative testing, maintain high rates of new asset introduction, and employ rigorous deduplication are better positioned to optimize acquisition spend, extend campaign longevity, and capture incremental market share across diverse geographic territories during the 2023 fiscal period.

marketing advertising user-acquisition+2

SocialPetaSept 2023

Financial

IGG Inc. 2023 Interim Report

IGG Inc. reported a revenue of HK$2.5 billion for the first half of 2023, representing a 1% year-over-year increase. This performance was anchored by the flagship title Lords Mobile, which contributed HK$1.6 billion, alongside the rapid scaling of new strategy titles Doomsday: Last Survivors and Viking Rise. A significant strategic shift was evidenced by the surge in the mobile application business, which reached monthly gross billings of HK$63 million by July 2023, signaling successful diversification beyond the core gaming portfolio. Despite stable revenue and a high gross profit margin of 72%, the Group recorded a net loss of HK$360 million, a substantial increase from the HK$171.8 million loss in the prior year. This deficit was primarily driven by an 85% surge in selling and distribution expenses, totaling HK$1.48 billion, as the company aggressively marketed its new titles. To mitigate these costs, management aggressively integrated AIGC technology into development and operations, contributing to a 32% reduction in R&D expenses and a 19% drop in administrative costs. These optimization efforts allowed the Group to return to monthly profitability by June 2023. The Group maintains a robust global presence, with Asia remaining its largest revenue contributor at HK$1.10 billion. Operations in China continue to utilize structured contracts to navigate foreign investment restrictions in the telecommunications and internet sectors, though these entities represent a small fraction of total assets and revenue. Financially, the Group remains liquid with HK$1.48 billion in cash, even as it manages HK$250 million in capital commitments for office construction. Governance during this period focused on streamlining incentive programs, including the adoption of a new Share Incentive Scheme to replace expiring and terminated plans, ensuring continued alignment between key personnel and long-term corporate objectives.

investment market-analysis mobile+1

IGGAug 2023

Financial

FY2023 Fourth Quarter Financial Results

GREE Group concluded fiscal year 2023 with net sales of ¥75.4 billion and operating income of ¥12.5 billion, demonstrating resilience despite a revenue contraction in the final quarter. While the core Game and Anime segment experienced a decline in sales and income due to a reactionary dip following major promotional events for Heaven Burns Red, the Investment Business emerged as a primary driver of profitability. This segment achieved a 1,489% year-over-year increase in operating income, supported by a total Assets Under Management of ¥80.7 billion and high-performing venture capital portfolios. The strategic outlook for fiscal year 2024 and beyond focuses on structural reforms and global expansion. The Game and Anime division is pivoting toward a multilayered development strategy with a pipeline of 17 titles scheduled through 2026, emphasizing first-party IP and international distribution to offset projected short-term revenue declines. Simultaneously, the Metaverse segment has been restructured into four specialized units—Platform, VTuber, B2B, and Web3—with the goal of achieving an overseas sales ratio exceeding 50% by 2026. Although heavy investments in VTuber productions are expected to keep the segment at a break-even level in the immediate term, these efforts are central to long-term growth in the North American market. Further diversification is evident in the DX and Commerce businesses, which are transitioning toward high-margin B2B SaaS models and integrated marketing services. The aumo platform has reached 17 million monthly active users, providing a foundation for lateral expansion into the HR sector. Despite temporary margin suppression caused by initial investments and the completion of large-scale projects, the company forecasts a 48% compound annual growth rate in Commerce sales through 2026. To support these multi-sector initiatives, the group has increased its total headcount to 1,670 employees, signaling a commitment to scaling its operational capacity across its evolving digital ecosystem.

investment market-analysis japan+1

GREEAug 2023

Financial

Summary of Main Supplementary Explanations Questions and Answers at the FY2023 Fourth Quarter GREE Results Briefing

GREE’s strategic outlook following the fourth quarter of fiscal year 2023 emphasizes a transition toward a more diversified business portfolio to mitigate the challenges of an increasingly low-margin smartphone game market. The company is shifting its development pipeline into four distinct categories: in-house development, regional expansion, joint development, and licensing. This approach leverages successful intellectual properties like Heaven Burns Red to secure collaboration opportunities with global IP holders. While specific release dates for the 2024 fiscal year remain undisclosed, the focus is on maintaining high quality despite rising development scales that have pressured industry-wide profitability. The Metaverse Business segment represents a critical growth pillar, with the Platform and B2B Metaverse divisions already achieving profitability. Earnings from these areas are being reinvested into the VTuber and Web3 businesses. The long-term objective is for all four metaverse sub-sectors to be profitable by fiscal year 2026, contributing significantly to group earnings. Current synergies are primarily indirect, such as the high international profile of the REALITY platform driving interest in English-speaking VTuber auditions, though more direct promotional integrations are planned as these businesses mature. Financial projections indicate a conservative near-term outlook, with consolidated operating income for fiscal year 2024 estimated between 4.0 and 5.0 billion yen. This forecast accounts for a lack of major new title contributions and a reactive decline following previous investment gains. By fiscal year 2026, the company aims for a more balanced income structure where approximately half of non-investment operating income is generated by segments outside of the Game and Anime Business. This medium-term strategy focuses on stabilizing earnings through business portfolio adjustments while targeting consistent 10% returns from the Investment Business.

market-analysis metaverse mobile+1

GREEAug 2023

Financial

Financial Results for the First Quarter of the Fiscal Year Ending March 2024

Koei Tecmo Holdings reported financial results for the first quarter of the fiscal year ending March 2024, revealing a period of transition characterized by a shift toward mobile dominance and strategic investment. Total sales for the quarter reached 18.3 billion yen, a slight 1.9% decrease year-over-year. While operating profit fell by 35.6% to 7.5 billion yen due to higher employment and subcontracting costs, ordinary profit rose significantly by 61.6% to 14.7 billion yen, bolstered by non-operating income from the sale of marketable securities. The entertainment segment remains the primary revenue driver, though its internal composition shifted during the period. The console sector experienced a 35.3% decline in sales and a 52.1% drop in unit volume, largely because the quarter lacked new major releases and relied on repeat sales of existing titles. Conversely, the online and mobile sector achieved record quarterly sales of 10.9 billion yen, a 31.7% increase driven by the successful launch of Dragon Quest Champions and strong performance in smartphone and social gaming. Digital sales now account for 87.3% of total entertainment revenue, up from 74.4% in the previous year. Geographically, Japan remains the strongest market, growing 16.9% to represent 58.1% of total sales. In contrast, overseas revenue declined across North America, Europe, and Asia. Looking ahead, the company maintains a positive full-year outlook with a sales target of 95 billion yen. Growth is expected to be driven by a robust pipeline of upcoming releases, including Atelier Marie Remake, Nobunaga’s Ambition: Awakening, and Fate/Samurai Remnant, alongside the continued expansion of the mobile portfolio with titles like Nobunaga’s Ambition: Shutsujin.

market-analysis global mobile+1

Koei TecmoJul 2023

Report

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

Report

Insights into Marketing Trends of Global Mobile Games

Global mobile game marketing reached a pivotal turning point in the second quarter of 2023, characterized by a record-breaking surge in creative volume. Over 9.3 million new creatives entered the market, representing nearly three-quarters of all active advertisements. While casual games maintained the largest share of advertisers at over 30%, RPG and Casino genres experienced the most aggressive growth in creative output. Geographically, Southeast Asia emerged as a primary hub for advertising density, leading the world in monthly creatives per advertiser, while the Middle East solidified its status as a high-growth market where strategy games command significant revenue shares. The industry is increasingly adopting "Casual + X" hybrid models and integrating AI-generated content, ASMR, and short-video memes to mitigate rising user acquisition costs. Financial data reveals a stark contrast in installation costs between platforms, with iOS casual game installs costing $2.23 compared to $0.63 on Android, yet both platforms achieved a comparable seven-day return on ad spend of approximately 7.7%. This parity suggests that despite higher upfront costs, the quality of users on premium platforms remains consistent with broader market performance. Market leaders like Honkai: Star Rail and MONOPOLY GO! demonstrated the efficacy of high-frequency creative refreshes, with new assets comprising over 60% of their total advertising portfolios. These titles leveraged distinct psychological hooks, ranging from influencer-driven user-generated content to social-casual mechanics, to achieve rapid global penetration. Notably, these aggressive marketing strategies allowed Honkai: Star Rail to surpass Genshin Impact in overseas revenue during the quarter, signaling a shift toward more dynamic, content-heavy advertising cycles across the global mobile landscape.

marketing advertising user-acquisition+2

SocialPetaJun 2023

Financial

FY2023 Third Quarter Financial Results

GREE reported net sales of ¥22.2 billion and operating income of ¥4.2 billion for the third quarter of fiscal year 2023, reflecting a strategic balance between core gaming profitability and aggressive expansion into emerging digital sectors. Financial performance was primarily bolstered by the continued success of the flagship title Heaven Burns Red and the strategic exit of positions within the Investment and Incubation business. While the Internet and Entertainment segment experienced growth, operating income faced downward pressure from a ¥3.1 billion increase in costs, largely attributed to substantial upfront promotional investments intended to secure long-term market share. The company’s growth strategy centers on the diversification of its Metaverse and DX business units. The REALITY platform has achieved significant scale, recording over 42 million annual visitors and expanding its B2B footprint through the REALITY XR cloud and the launch of the FIRST STAGE PRODUCTION VTuber agency. These initiatives are supported by a robust financial foundation, including ¥30.8 billion in net cash and a total asset base of ¥120 billion. Despite a slight quarterly decrease in investment securities due to distributions, the investment portfolio remains a critical pillar of value, maintaining approximately ¥75 billion in assets under management. Long-term stability is further evidenced by the Investment and Incubation segment’s internal rate of return, which ranges from 16% to 23% across various phases. Although advertising expenditures rose significantly during the quarter to support global launches, the company maintained a stable headcount of 1,593 employees and reaffirmed its dividend forecast of ¥11 per share. This financial posture indicates a commitment to prioritizing medium-to-long-term growth in virtual world infrastructure and digital transformation while leveraging the steady cash flow generated by its established gaming and investment operations.

market-analysis investment japan+1

GREEMay 2023

Financial

Summary of Main Supplementary Explanations Questions and Answers at the FY2023 Third Quarter GREE Results Briefing Held on May 11, 2023

GREE’s financial performance and strategic outlook for the third quarter of fiscal year 2023 highlight a period of international expansion and technological evolution. The successful launch of overseas versions of Heaven Burns Red serves as a primary driver for the Internet and Entertainment Business. While specific long-term forecasts remain premature only three months post-launch, initial sales levels align with market expectations, indicating a strong start in global territories. For the upcoming fourth quarter, the company anticipates operating income of approximately 1.5 billion yen in this segment, accounting for the natural tapering of revenue following major anniversary events in the Japanese market. The metaverse platform REALITY represents a significant pillar of growth, having surpassed 10 million global users. The platform distinguishes itself from competitors through high daily active user engagement and a proven monetization model centered on avatars and livestreaming. Strategic development for REALITY involves the integration of generative AI to facilitate user-generated content, mirroring successful industry trends seen in platforms like Fortnite. Current experimental applications of AI focus on the automated creation of 3D assets, including avatars and environmental elements, to enhance the service's scalability and creative depth. Financial stability is further supported by the Investment and Incubation Business, which expects to post roughly 0.5 billion yen in operating income for the fourth quarter. This figure is largely secured through dividend income from corporate venture capital funds. Collectively, these results demonstrate a dual focus on maintaining core gaming profitability while aggressively scaling a monetized metaverse ecosystem for a global audience. The geographic scope emphasizes a shift toward international markets, particularly as the domestic Japanese mobile market matures and the company seeks to leverage its technological strengths in AI and virtual communities.

market-analysis monetization metaverse+3

GREEMay 2023

Financial

Consolidated Financial Results for the Fiscal Year Ended March 31, 2023

MIXI, Inc. achieved significant top-line growth during the fiscal year ended March 31, 2023, with net sales rising 20.4% to ¥146,867 million and operating income increasing 39.4% to ¥24,820 million. This performance was primarily driven by the Digital Entertainment segment and the continued strength of its flagship title, Monster Strike. Despite these gains, profit attributable to owners of the parent fell by 49.7% to ¥5,161 million. This decline resulted from substantial non-operating and extraordinary expenses, including a ¥6,604 million loss on equity method investments, a ¥4,818 million impairment loss related to bitbank, inc., and a ¥4,408 million loss stemming from business withdrawals. The fiscal year was characterized by strategic structural shifts, most notably the reclassification of the Investment Business into a primary reportable segment. This change moved operational investment securities to current assets and integrated related gains and losses into net sales and cost of sales. While income before taxes decreased, net cash from operating activities saw a dramatic increase from ¥2,647 million to ¥15,751 million. The company maintained a robust liquidity position, ending the period with ¥118,703 million in cash and cash equivalents, supported by reduced spending on investing and financing activities compared to the previous year. Looking forward, projections for fiscal year 2024 suggest a decline in net sales and operating income, though net profit is expected to recover by 45.3% as the impact of one-time losses diminishes. To enhance capital efficiency and shareholder value, a stable dividend of ¥55 per share was maintained, supplemented by a post-fiscal year authorization of a share repurchase program valued at up to ¥7,500 million. These actions reflect a transition toward a more diversified business model, balancing core digital entertainment assets with strategic investments and portfolio optimization.

investment market-analysis market-forecast+2

MIXI, Inc.May 2023

Report

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

Report

The 50-Plus Gamer of Today and Tomorrow

The population of gamers aged 50 and older has expanded to 52.4 million individuals, with average weekly engagement rising over 40% since 2019 to reach 12 hours per week. While mobile remains the dominant platform due to the popularity of puzzle, card, and word games, there is a notable increase in console and PC usage among high-engagement segments. This demographic is segmented into five distinct cohorts, where the most passionate 26% of players—classified as Enthusiasts and Immersives—account for nearly half of all total spending. Although current biannual spending averages $49 per person, the market is poised for significant growth as the 40-49 age bracket, which boasts a 62% participation rate, transitions into this older demographic. Primary motivations for play center on mental acuity and passing time, with 70% of these gamers viewing play as an essential component of healthy aging and cognitive stimulation. Despite this high level of engagement, a significant gap exists between consumer behavior and industry representation. Approximately 70% of older gamers feel the industry treats them as an afterthought, citing a lack of age-inclusive design and a dearth of marketing that reflects their demographic. Furthermore, these players express strong dissatisfaction with aggressive monetization strategies, such as progress-gating ads and microtransactions, which serve as primary barriers to enjoyment. The industry currently faces a critical disconnect where older adults struggle to find titles specifically designed for their needs. While gaming peaks for this group during evening hours, their preferences remain concentrated in logic and tile genres, though higher-engagement segments increasingly seek narrative-driven and social experiences. To capture the full potential of this expanding market, developers must address sensitivities regarding cost and representation while leveraging the deep-seated belief among older players that gaming is a vital tool for maintaining mental health and social connection.

player-demographics player-behavior mobile+1

AARPApr 2023

Report

The Mobile Economy and Digital Ad Space in 2022 and Beyond: An Analysis of the Global Trends Shaping the Mobile and Digital Advertising Industry

This analysis examines the global mobile economy and digital advertising landscape throughout 2022 and into early 2023, utilizing proprietary market intelligence data from the App Store and Google Play. While global app installs have slowed following the initial pandemic surge, they remain significantly above 2019 levels. Mobile games continue to be the primary driver of downloads globally, exceeding 50 billion installs in 2022, though the utilities category has recently emerged as a significant growth leader, particularly in emerging markets like India. A major shift occurred in 2022 as global consumer spending on mobile games declined for the first time, falling to $79 billion. This downturn was particularly pronounced on Android devices, which saw a 7 percent revenue drop driven by high inflation and the lifting of COVID-19 restrictions. Japan experienced the most significant contraction, with game revenue falling by $3.2 billion. Conversely, the entertainment category has become a primary engine for revenue growth, with spending on apps like TikTok, HBO Max, and Disney+ reaching record highs. In the United States, entertainment spending doubled compared to 2019 levels, while in Japan, a manga reader app became the top-grossing title for the first time, displacing traditional gaming leaders. The digital advertising sector reached $28 billion across North America and major European markets in the fourth quarter of 2022. While established platforms like Facebook maintain the largest market share, TikTok has emerged as the fastest-growing ad channel, recording a 60 percent quarterly increase in U.S. ad spend. Facing headwinds from Apple’s privacy changes and reduced marketing budgets, many developers are pivoting toward subscription models and diversified monetization strategies. Looking forward, the reopening of China and the high smartphone penetration growth in Africa are identified as critical factors for the next phase of global mobile adoption.

market-analysis advertising global+1

Sensor TowerMar 2023