The mobile gaming market is expected to see significant changes and developments in 2023. A move towards the middle is expected to result in a resurgence of casual gameplay mechanics, as larger companies abandon user acquisition and look towards M&A for DAU growth. Hybrid monetization strategies are expected to become more prevalent, with subscriptions and brand spend playing a larger role in in-game ads monetization.
Personalization will play a key role in the success of mobile gaming in 2023. Studios will understand the importance of attracting and retaining a diverse audience through personalized in-game experiences and will invest in tools and technologies to achieve this. User-level personalization, including special offers, content pathways, difficulty scoring, cross-promotion and behaviourally relevant bundles and content packages, will be a critical factor in driving revenue and retaining players.
2023 Predictions and Future for Mobile Gaming:
- Shift to Casual Game Mechanics: The mobile gaming market will move towards casual gameplay mechanics, leading to a resurgence of casual gameplay.
- M&A for DAU Growth: Larger companies will abandon user acquisition and turn to M&A to drive DAU growth. Games-only acquisitions will become more common as the industry moves away from direct-response advertising.
- Proliferation of Hybrid Monetization: Subscriptions will become more prevalent, especially for legacy games. Studios will look to shift monetization from one-off IAPs to higher-value subscriptions, as the market moves away from loot boxes.
- Increase in Brand Spend: Brands will advertise in mobile games, leading to brand spend reaching a significant portion of in-game ads monetization. New tools will come to market to enable brand measurement and transparency.
- Flat or Slightly Up Market: The mobile gaming market will be roughly flat or slightly up in 2023, with growth of 0-5%. New measurement capabilities, coupled with content and operational adaptations, will result in market growth.
- Increased focus on quality: With the growth in competition, studios will put more emphasis on delivering high-quality games to players. This includes improved graphics, sound design, game mechanics, and overall user experience.
- Multi-language support: With the increasing global reach of mobile gaming, more studios will focus on localizing their games for multiple languages to expand their player base. This will include not only translation but also localization of in-game content to better resonate with players in different regions.
- Mobile-PC crossover: As mobile hardware becomes more powerful; players will expect their mobile games to be on par with PC or console games. As a result, we will see more mobile games that are designed to take advantage of this increased power, with more immersive and complex gameplay experiences.
- Augmented Reality and Virtual Reality: AR and VR will play a more significant role in mobile gaming in 2023, allowing players to experience new levels of immersion in games. This could include games that blur the line between reality and the virtual world, making for an even more engaging and interactive experience.
- Cross-platform play: With the growing number of players across multiple platforms, more studios will look to allow players to play games together regardless of the device they are using. This will help increase player engagement and drive greater monetization.
- Gamification of non-gaming experiences: Gamification will become increasingly popular in 2023, with more non-gaming apps and websites incorporating elements of gaming into their experiences. This will create new opportunities for mobile gaming studios to monetize their games and reach new audiences.
The mobile gaming market is expected to continue growing in 2023, albeit at a slower pace. The shift towards casual gameplay mechanics and user-level personalization will be key drivers in this growth. Additionally, larger companies are expected to move away from user acquisition and focus on M&A to drive DAU growth. These predictions highlight the importance of adapting to the changing market dynamics in order to stay ahead of the competition.
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