Consoles and PCs Are OK. But Mobile Games Are Lucrative and Accessible
Why Is Take Two Buying Zynga?
By betting big on mobile games with the $12.7 billion acquisition of Zynga, which publishes some of the most popular games - Farmville, Words With Friends - and has a cult-like following, Take-Two Interactive becomes the largest player in this rapidly-growing space.
It will give the company, publisher of Grand Theft Auto, NBA 2K and Red Dead Redemption, access to a lucrative ad market.
Zynga "was among the first to really take advantage of micro transactions and in-game purchase in mobile,” wrote Chris Sutcliffe in The Drum.
“Crucially it was also among the first publishers to use-in-app advertising within its games, effectively monetizing the users who otherwise would not spend.”
Some are speculating that Zynga is building its own advertising network based on the first-party data it has on its users. The company acquired ad company Chartboost last year for $250 million.
It’s a Huge Market
The number of users in the U.S is expected to grow 20% to 181.3 million in 2025 from 150.5 million in 2020.
Mobile gaming represented 57% of gaming revenue worldwide in 2020, according to a recent report from Statista, a provider of market and consumer data. It has become the “driving force” behind the rapid growth of the global videogaming market.
That same year, smartphone games accounted for almost half videogaming revenue worldwide. It’s on track to surpass the $100 billion mark by 2023.
In the U.S, one of the largest videogame markets, mobile-games revenue reached a record $10.73 billion and could go up to $30 billion in 2025.
Like their console and PC peers, some mobile games offer in-app or in-game purchase options for virtual items or game-enhancing experiences.
Why Are Mobile Games So Popular?
Most mobile games are free, where videogames and consoles are expensive and require investment. Free mobile games open big doors for curious audiences.
Indeed, what made the success of some of the most popular mobile games, like Angry Birds, Candy Crush and even Clash of Clans, is their quality of literally "free to play." No need to shop around websites and stores to find a good deal on the game you have in mind.
PC or console games and hardware represent a significant budget for households. But to play a mobile game, all you need is a mobile phone.
No need to line up and pray that the brand new game isn't already out of stock. No risk of having to find time in a workweek to sit in front of a console and be able to enjoy a game for a few hours. And you can play just about anywhere.
They Are Accessible and Affordable
Mobile games do not require any special abilities. They are easy to access and do not require players to be familiar with videogames.
From jackpot slots like Mega Moolah to the latest Fortnite Battle Royale game, there is something for everyone -- games of skill, thinking, management, strategy, racing, combat and shooting.