The rapid emergence and domination of mobile gaming is astounding, to say the least.
It has been nearly six years since mobile gaming has overtaken the combined global
revenue of PC and console gaming. From setting up your team in a fantasy cricket app,
playing online ludo with friends or learning rummy rules in an online rummy app, every
gaming activity can now be done using your smartphone.Â
The Galloping Popularity of Smartphones
India is home to more than 500 gaming studios. 3 Indian gaming startups have
achieved unicorn status. There is no dearth of quality game titles in the country. Nor is
there any dearth of gamers. With over 400 million gamers, gaming in India is a $1.6
billion industry that is growing at a CAGR of 20%. And mobile phones are the new
playgrounds.
It was only in 2011 that BlackBerry phones ruled the global market. See how far we
have come since then? And what about the network speed? We cannot imagine using a
3G network today. And yet, it was cutting EDGE only 12 years ago. Internet penetration
in India has more than tripled in the last 10 years. On the other hand, the cost of the internet has fallen drastically. From more than Rs 226 per GB in 2015, it has been less
than Rs 10 in the last five years. Smarter smartphones and superior internet quality at
dirt-cheap prices – it is no surprise that India is mobile-first now. So is gaming!
The Emergence of Emerging Markets
Although smartphones started as a first-world phenomenon, it didn’t take long to
penetrate emerging markets. Emerging economies like Turkey, Brazil and India have
witnessed a sharp increase in smartphone penetration. Currently, it stands at 71% in
India, poised to reach 96% by 2040. By July 2023, Indians had downloaded 4.32 mobile
gaming apps. This is 15.3% of the global total.
Brazil is the fifth-largest smartphone user in the world. 60% of Brazilians use
smartphones as their primary source of internet connectivity. These are the highest
numbers in the Western world. Asian emerging countries like Thailand and Indonesia
clock even higher in this parameter, with 45% and 43%, respectively.
Smartphone penetration is about to touch 80% in Turkey, quite a Turkish delight for
smartphone companies. Turkish gamers clocked 2.1 billion mobile game downloads in
2022, a staggering number for a country of 86 million people.
Why Mobile Gaming?
Gaming on a smartphone is convenient as you can carry it around your pocket. If you
are an online rummy enthusiast, your Playship App fits right into your phone. A console
or a PC, typically more expensive, is primarily for gaming and computing, whereas a
smartphone offers a more versatile use, including gaming, at a potentially lower cost.
Gaming companies are promoting the freemium concept, where the app is available for
free download, while additional features are available through in-game purchases.
Mobile phones are lifestyle companions nowadays, which makes them an ideal device
for hyper-casual gaming as well.
Emerging Markets: The Land of Opportunities
As per 2018, only 45% of the population in emerging economies had a smartphone,
compared to 76% in developed countries. However, today, these emerging countries
occupy top spots in most smartphone and mobile game downloading-related
parameters. Brazil and Indonesia are among the top smartphone markets, alongside
India.
As smartphones become more affordable for the masses and affordable
telecommunication penetrates, these emerging economies will heavily dominate the
global mobile gaming market. For gaming companies and investors, these countries
offer immense opportunities for widening market presence and expanding into new
demographics.
Coping with Local Challenges
Along with the opportunities, mobile gaming in emerging markets faces a few
challenges as well. Affordability must be kept as an integral feature. This is why the
freemium concept is also gaining ground. Unlike developed economies, the mobile
market in emerging economies is fragmented. There are different hardware
specifications and operating systems that mobile gaming apps must fit into. With
affordable smartphones, there may be issues with touchscreen control. This could affect
the gaming experience.
Another challenge for mobile gaming apps is to remain culturally relevant. Developed
countries are culturally uniform compared to emerging countries. The mobile gaming
industry must consider the vibrant Latin American culture in mind while operating in
Brazil and Argentina. But the approach might need to be quite different in the Far East
or while juggling the cultural melting pot that is India.
The Road Ahead In Emerging Markets
The mobile gaming industry is adopting innovative approaches to explore emerging
economies. Game localisation is seen as the catchphrase, whether it is making games
available in Mandarin for Chinese gamers or in Portuguese in Brazil. Besides, story,
technical and marketing content are localised to keep the game culturally relevant. Also,
gaming communities are being nurtured, and active engagement with them is a part of
the strategy for most leading gaming companies. Emerging markets are stamping their
mark on the global mobile gaming scene while shaping a localised future for the global phenomenon.