13 Mar 2018
Live multiplayer games on smartphones and tablets took center stage for the first time
FRAMINGHAM, Mass. and SAN FRANCISCO, Calif., March 13, 2018 – Leading mobile app data and insights company App Annie and International Data Corporation (IDC), the premier provider of technology market intelligence services, today unveiled a special joint report entitled, "Gaming Spotlight, 2017 Review." The report analyzes the mobile games market in 2017 from several vantage points and puts it in a broader, global gaming industry context.
The report features three main themes: mobile gaming's relatively large scale and faster growth rate in terms of direct consumer spending compared to home game consoles and PC/Mac gaming; the ascendance of live player vs. player (PvP) or co-op multiplayer games to the top of the grossing charts last year; and Asia-Pacific's ongoing rise to dominance not just in terms of spending but, increasingly, in game origination and gameplay innovation.
Direct spending on mobile games exceeded the combined spending total on home console, PC/Mac, and handheld console games by more than one third in 2017, up from a single-digit margin by the same measure in 2016. Games also generated nearly 80% of total worldwide consumer spend for combined iOS and Google Play, while accounting for roughly 35% of worldwide downloads.
"Mobile gaming's lead widened globally in 2017; mobile game spending was 2.3x PC gaming and 3.6x game consoles last year," said Danielle Levitas, SVP of Research at App Annie. "With billions of mobile devices in the world, apps are the mass market gaming platform for casual and serious gamers, enabling them to play whenever and wherever they want to."
The top two grossing games worldwide on both iOS and Google Play in 2017 featured live PvP gameplay, demonstrating that hardcore-leaning multiplayer elements aren't just possible on mobile devices, but have already proven popular and lucrative. The ascent of titles like Honour of Kings (published by Tencent and known as Arena of Valor in Western markets), Lineage 2 Revolution (Netmarble), Fantasy Westward Journey (NetEase), and Lineage M (NCSOFT) to the top of the mobile grossing charts shows that live multiplayer games are an important trend in gaming that has clear esports implications. 2017 appears to have been the first year that three different live PvP titles took the top grossing slot on iOS, Google Play, and handheld game consoles (Pokémon Sun / Pokémon Moon, published by The Pokémon Company and Nintendo for Nintendo 3DS/2DS, was the top grossing handheld title last year, and features live PvP battles).
An IDC survey of U.S. gamers from 3Q 2017 showed that a lower share of smartphone and handheld console gamers played live PvP or co-op titles (34%) than did PC/Mac and home console gamers (over 44%), but this gap also narrowed relative to a similar survey from 3Q 2016. Live PvP or co-op gamers on smartphones and handheld consoles, the same 3Q 2017 survey showed, skewed younger and male compared to the balance of smartphone and handheld gamers that didn't play such games. Live PvP or co-op gamers in the U.S. were more likely to have spent money on a smartphone or handheld console game in 3Q 2017, moreover, and were more likely to play associated titles for at least five hours a week.
"Live multiplayer gaming on smartphones and tablets took a big step forward in 2017," said Lewis Ward, Research Director of G aming and AR/VR at IDC. "Although titles such as Clash Royale, ROBLOX, and Hearthstone: Heroes of Warcraft have been popular in Western markets for some time, it's now clear that publishers from Asia-Pacific not only have an 'answer' to these titles, but upped the ante last year not just in scale but, arguably, in the sophistication of live PvP and co-op gameplay."
Rapid growth in a few key markets, most notably China, Japan, and South Korea, helped fuel mobile gaming's ascent in 2017. All regions saw an increase in mobile game spending last year, but over 60% of mobile game spending occurred in Asia-Pacific – and this region gained share of spending relative to 2016. With battle royale games like PUBG: Exhilarating Battlefield, and PUBG: Army Attack becoming increasingly popular on mobile devices, this live multiplayer gameplay mode should also impact on mobile gaming in 2018, particularly in Asia-Pacific.
To obtain a copy of the full report please visit:
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn.
About App Annie
App Annie delivers the most trusted app data and insights for your business to succeed in the global app economy. Over 1 million members rely on App Annie to better understand the app market, their businesses and the opportunities around them. The company is headquartered in San Francisco with 450 employees across 15 global offices. App Annie has received $157 million in financing from investors including e.ventures, Greenspring Associates, Greycroft Partners, IDG Capital Partners, Institutional Venture Partners and Sequoia Capital. Learn more at www.appannie.com.