A Few Takeaways from Gamescom 2023
Gamescom is the most anticipated event on the gaming calendar every year, and 2023 was no exception. The event attracted 320,000 attendees, with over 31,000 trade visitors and 1,227 exhibitors at last week’s Cologne show.
We brought the Monetizr team to Germany last week to connect with customers, meet up with our partners, and share with other industry insiders what we and they are up to.
Here are some key takeaways:
- Monetization takes a front seat
Gone are the days when developers relied solely on a single monetization approach, be it premium purchases, in-app transactions, or advertisements. Instead, they have embraced a fusion of diverse monetization strategies to not only optimize their revenue but also elevate the overall player experience.
This paradigm shift is not confined to a specific platform; it spans across PC, console, and mobile gaming. It serves as a clear indicator that the gaming industry is undergoing an evolution, with a keen focus on establishing more sustainable and player-centric revenue models.
2. Why Brands are taking notice
Mobile gaming remains king when it comes to large and diverse audiences. And the presence of companies that also have a focus on casual and hyper-casual gaming such as Voodoo, TapNation, Kwalee, and others could be strongly felt.
- Mobile gaming revenue is on track to surpass more than $180 billion this year.
- 3.2 billion people worldwide regularly playing video games, more than half are playing mobile games.
- More than 50% of mobile gamers are female.
- Gen Z now prefers spending their time gaming rather than social media.
This shift underscores the increasing importance of mobile gaming in the gaming ecosystem. Traditionally viewed as a secondary platform, mobile gaming has grown to become a powerhouse of its own.
3. The potential held by emerging markets is quite substantial
In 2023, Gamescom featured Brazil as its partner country, marking the event’s first South American partnership in its history. Additionally, more than 60 countries participated with national pavilions, including representation from emerging markets like Latin America and Africa.
During Devcom, a panel of experts from Africa’s gaming industry discussed prevailing misconceptions about the continent’s contributions to the video game sector and highlighted the considerable growth potential within the African gaming market. The rapid proliferation of smartphones is reshaping gaming habits in Africa, a trend that should significantly influence future marketing strategies and content creation. Understanding the evolving needs of businesses and consumers in these regions opens up exciting prospects for partnerships and opportunities.
4. Monetization Potential and Strategies
While casual games often have a free-to-play model, they are generating significant revenue through in-game ad intergrations and micro-transactions. For instance, the hyper-casual game “Subway Surfers” had generated over $100 million net revenue for its Danish creators SYBO Games.
In addition to traditional in-app purchases, game developers have been experimenting with various monetization models such as rewarded ads, where players watch ads in exchange for in-game rewards, and battle passes that offer a progression system with exclusive rewards.
Conclusion
Overall, casual and hyper-casual mobile games are serving as a crucial nexus where brands and gamers meet. This segment contiunes to contribute significantly to the gaming industry’s revenue, and drive innovation through broad demographic appeal.
If you’d like to know more details on the easiest way to get your brand in the game, book a demo here.
