Android KO: Huge majority of mobile gaming revenue dominated by Apple
There has been a buzz about Android developers heading towards Apple’s iOS, mainly due to Android market fragmentation. But the main reason, we assume, is money: Google paid $320 million to developers, while Apple sent a total of $4 billion in payments.
Now Newzoo’s latest survey confirms why Apple’s iOS is more valuable to developers—focusing on gaming: Apple owns a tremendous 84% of all mobile gaming revenue in North America.
Ooops! That’s obviously a KO for Android.
Newzoo CEO Peter Warman commented on the results, highlighting the main reason why the research company thinks Apple is the monetization king: “When analyzing Apple’s successful monetization, there is one dominant factor outside of differences in audience demographics and preferences: Apple requires users to connect their credit card information directly to their account, thus creating a seamless purchasing experience.”
In-App purchasing is made so simple that Apple had to implement some barriers to make it harder—think of password check points—to protect parents from having their children make other purchases other than those approved by the parent.
The more important fact though, is that in-App purchases are poised to grow. The mobile gaming revenue generated by both Android and iOS was driven by in-App purchases (91%—equal on both platforms), which is good news for mobile game developers.
Newzoo’s study—based on surveying 17,000 individuals and analyzing the top 200 grossing games in the iOS App Store, Google Play and other Android marketplaces—shows that paying players have grown 35% to 37 million. Currently, there are 101 million mobile game players in the US, the report highlights, of with 69% play on their mobile handset and 21% on tablets.
Overall, the study brings good news for mobile game developers and forecasts a double-digit growth in mobile gaming revenue for this year. However, a Flurry study shows that mobile gaming now has a powerful competitor, social media, which has gained powerful traction in just one year, leaving mobile gaming behind. Both now account for about the same time spent on mobile devices.