Mobile games revenue to rise significantly thanks to in-game purchases

No matter which platform you talk about the gaming industry has always been highly profitable. Even today when mobile devices are dominating everything, mobile games have an over other types of apps. Due to their addictiveness and easy access through smartphones, mobile users are not only playing the games but are also spending big bucks on in-game purchases. According to a recent study the in-app purchases alone are set to grow 16.5 percent, which will take the overall market to more than $3 billion in the year 2015.

The revenue gained by mobile games significantly beats other forms of content on smartphones and tablets as revenue for music and video is only expected to grow by 5.4% and 13.8% respectively. The rising revenue and user interest for mobile gaming and in-game purchases is credited to ‘freemium model’ of games that allows users to download and play for free but asks charges them for upgrades, in-store items, character upgrades and to unlock new levels. In many cases users end up spending much more inside the ‘free’ game than they would have to buy it. According to an estimate the virtual coins that are used to purchase goods from the game store or unlock new levels will account for 60% of the total growth.
It has also been found that users are now more willing to pay for games online than they were a few years ago and that is partly due to rise of mobile games and fremium models of the game.
By the end of year 2015 the total revenue of mobile downloads is expected to hit $9.82 billion after 10.3 percent growth. Out of that astonishing figure mobile games will account for 30.9%. [WSJ]

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