Mobile gaming’s dominance pushes platforms to adapt

The trend: Game developers and phone manufacturers are intensifying efforts to capture the growing mobile gaming market by expanding titles to more platforms and mediums.

• Mobile gaming profits made up 49% of the global games market this year, per Newzoo, and the growing availability of alternative app stores could boost that figure in 2025.
• Streaming services are using games to boost engagement, while phone providers and console creators compete for on-the-go gamers.

Zooming out: PC-connected consoles are no longer the norm for gaming hardware. 60% of Gen Z gamers and 64% millennial gamers play on mobile phones, per Collage Group.

• 32% of Gen Z gamers and 26% of millennials play on Nintendo Switch, showing there’s remaining interest in portable gaming consoles. An expected Switch 2 release in 2025 could help Nintendo keep up with Valve’s popular Steam Deck.
• 13% of both Gen Zers and millennials play on other handheld consoles.

The crossovers: Platforms that previously had no stake in gaming are developing titles to boost user engagement.

YouTube, Netflix, Sling TV, and LinkedIn added games this year in a bid to increase revenue per user and make their platforms more sticky.

• Developing and licensing games isn’t cheap, though, and some companies learned that big-budget titles are better left to devoted game publishers.
• Netflix closed its AAA gaming division in October, likely due to costs and long-term production timelines.

Better formats: As smartphone models continue to improve, the mobile gaming experience becomes more compelling.

• Updated phone models from Apple, Samsung, and Asus this year feature powerful CPUs and high-quality displays that are primed for gaming and can handle more graphically complex titles.
• This could encourage consumers to pay for premium mobile versions of AAA games that were traditionally reserved for consoles.

Our take: As we move into 2025, the mobile gaming landscape will likely evolve further. Devices will become more powerful, allowing developers to push the limits of mobile gaming without compromising quality.

We could see more crossovers from streaming services and even social media platforms that are looking to capture a bigger share of the gaming audience. However, those businesses need to focus on what games and experiences their audiences are likely to play, and what their brands are known for, to avoid overspending.

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