A new research report shows just how lucrative the mobile gaming business is. Atomik Research talked to 500 developers in the US and the UK and discovered a pretty tragic trend in the mobile gaming industry.
In the Good Games Don’t Die report, it’s been revealed that 83% of mobile games launched fail just within three years, while 43% of such games don’t even survive the development stage and are canceled before seeing the light of day.
It also states that 76% of mobile games only reach their peak revenue within year one, with only 4% of them managing to get the same result within the next year.
Casual gamers are not the only reason behind this trend, because only a few developers are willing to adopt a “live” gaming service approach.
According to Atomik Research, majority of developers do have live services in their games, albeit 38% of them don’t publish regular updates or content. In addition, less than 50% update their games, and just 5% are lucky enough to get extended support for seven years since it was launched.
It is also revealed that 78% of developers do prefer working on new projects, despite the staggering failure rate of new gaming ventures.
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Finally, more than a third of the developers expressed that the “uncertainty in the industry” is what’s stopping them from building new mobile game experiences, while 30% of the developers think that the current market condition is too terrible to give a reasonable chance for success.
Two-thirds of mobile game studies have experienced downsizing and major budget cuts. The report said that a lot of developers are having a hard time remaining profitable in these times, especially with challenges like Apple’s App Tracking Transparency, tough competition, and high inflation.
Via: TechSpot