Mobile Gaming - UK - October 2019

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Gaming forecast to reach £2.03 billion by 2024
Figure 1: Forecast for the value of the UK mobile gaming market, 2014-24
Gaming continues to be the largest app category for purchasing
Mobile advertising spend doubles in the space of a year
The emergence of 5G, cloud and AR technologies will power mobile gaming market
Streaming services to compete to who can be the Netflix of gaming
Companies and brands
Pokémon Masters launches early on Android and iOS to a deluge of demand
Top freemium titles still leading the way on App Store and Google Play
Tencent leads investment and acquisition activity
Activision Blizzard eyes up new advertising and marketing activity
AR genre gets two new marquee releases
The consumer
Puzzle trivia and word games continue to be the most popular
Figure 2: Types of game played on mobile device in the last six months, July 2019
Smartphone predominately the go to device for gaming
Figure 3: Devices used to play mobile games, July 2019
Mobile gaming is most popular in the home environment, but other settings prove popular gaming occasions
Figure 4: Locations of mobile gaming, July 2019
Virtual and augmented reality games are not yet seen as the holy grail by consumers
Figure 5: Appetite for VR and AR games, July 2019
A paid for subscription service for mobile gaming could attract a variety of audiences
Figure 6: Interest in paid for streaming service for mobile games, July 2019
What we think
ISSUES AND INSIGHTS
Technological infrastructure and developments will power the mobile gaming market to new heights by 2022
The facts
The implications
Gaming subscription models will be the next gold rush for content platforms
The facts
The implications
Mobile advertising spend doubles in the space of a year with Gameloft overtaking Niantic as the number one spender
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Mobile gaming continues its upward growth trajectory
Gaming is the most popular category on revenue on both the app store and Google Play in the first half of 2019
2019 looks set to be a ground-breaking year for the mobile gaming genre
Beyond 2019, Mintel forecasts that the mobile gaming market will continue to see further growth until 2022
Gaming continues to be the largest app category for purchasing
The cloud set to unlock mobile gaming potential as tech giants scramble to be first mover
Augmented Reality looks set to surpass Virtual Reality in developer’s agenda and AI set to influence game development and gameplay
Investment in mobile gaming hits record highs in 2019
MARKET SIZE AND FORECAST
Mobile gaming continues its upward growth trajectory
Figure 7: Forecast for the value of the UK mobile gaming market, 2014-24
Figure 8: Forecast for the value of the UK mobile gaming market, 2014-24
New technologies to drive further growth over the next five years
Player acquisition and retention remains challenging
Forecast methodology
MARKET DRIVERS
Gaming continues to be the largest app category for purchasing
Figure 9: App purchasing, July 2019
Figure 10: In-app purchasing, July 2019
5G set to enhance mobile gaming experience
Cloud gaming set to unlock mobile gaming potential
AR looks set to surpass VR on developers’ agendas
Continual improvements in AI technology set to drive the market forward
Analysing player behaviour
Identifying potential revenue streams
Enhancing other new technologies
Speciality gaming phones will drive user experience and provide infrastructure for innovation
Mobile esports continued their upward trajectory
Freemium games still lead the way in revenue generated
Loot boxes continue to be monitored by government
Investment in mobile gaming hits record highs in 2019
Direct to consumer propositions – The next gold rush?
Blockchain’s impact on the gaming landscape
Companies from outside the gaming sphere, look to make an imprint by gamifying their stable of brands
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Tech giants set out their cloud gaming vision
Call of Duty: Mobile – Breaks records on release of its free-to-play app game
Mario Kart Tour September release hits 4.1 million downloads in its first month
Pokémon Masters launches early on Android and iOS to a deluge of demand
Konami Slates October release for flagship PES mobile title
New AR titles released
Developers continue to capitalise on the global esports phenomenon
Mobile advertising spend doubles in the space of a year with Gameloft overtaking Niantic as the number one spender
Niantic makes use of cinema to support Harry Potter: Wizard Unite
In-game advertising creates its own opportunities
LAUNCH ACTIVITY AND INNOVATION
Apple Arcade and Google Stadia set to be the marquee launches of 2019
Other tech giants launch their own cloud mobile gaming services
Microsoft enters the arena with xCloud
Pokémon Masters launches early on Android and iOS to a deluge of demand
Konami Slates October release for flagship PES mobile title
Mario Kart Tour September release hits 90 million downloads in its first week, but monetisation strategy dogs the success
Mobile versions of cult classics to launch at the back end of 2019
Board Games to become mobile apps
Final Fantasy… gets multi-player treatment
New AR titles released
Call of Duty: Mobile – Breaks records on release of its free-to-play app game
Developers continue to capitalise on the global esports phenomenon
ADVERTISING AND MARKETING ACTIVITY
Mobile advertising spend doubles in the space of a year with Gameloft overtaking Niantic as the number one spender
Niantic makes use of cinema to support Harry Potter: Wizard Unite
In-game advertising creates its own opportunities
In-game influencers
Activision Blizzard invests in mobile gaming advertising
Figure 11: Total above-the-line, online display and direct mail advertising expenditure, August 2018-July 2019
Nielsen Ad Intel
THE CONSUMER – WHAT YOU NEED TO KNOW
Gaming app usage static, but overtaken by finance/payment category
Puzzle, trivia and word games continue to be the most popular
Male bias remains in key genres but with signs that change is coming
Older generations are engaged with mobile games
Smartphone the go to device for gaming
5G set to underscore mobile gaming’s dominance
The smartphone could be a proxy for the console
Mobile gaming is most popular in the home environment
VR and AR games not seen as the Holy Grail by consumers
Genre drives varying levels of in-game expenditure
A paid-for subscription service could attract a variety of audiences
APP USAGE
Gaming app usage static, but overtaken by finance/payment category
Figure 12: Regularity of app usage by category, July 2019
GENRES PLAYED
Puzzle, trivia and word games continue to be the most popular
Male bias remains in key genres but with signs that change is coming
Figure 13: Types of games played on mobile devices, July 2019
Older generations are engaged with mobile games
DEVICES USED TO PLAY MOBILE GAMES
Smartphone the go to device for gaming
Figure 14: Devices used to play mobile games, July 2019
5G set to underscore mobile gaming’s dominance
The smartphone could be a proxy for the console
Figure 15: Devices utilised for gaming, July 2019
LOCATIONS FOR MOBILE GAMING
Mobile gaming is most popular in the home environment
Gaming on the go set to get a 5G boost
Figure 16: Locations of mobile gaming, July 2019
AUGMENTED AND VIRTUAL REALITY GAMING 
VR and AR games not seen as the Holy Grail by consumers
The rules of gameplay design still apply to AR/VR titles
AR can connect seniors with online communities
Figure 17: Appetite for VR and AR games, July 2019
SPENDING ON GAMES AND ADDITIONAL CONTENT
Genre drives varying levels of in-game expenditure
Arcade micro-transactions and multiplayer enhancements
In-game gifting can create a virtuous circle
Figure 18: Spend on smartphone games and additional content or access, July 2019
INTEREST IN GAME STREAMING SUBSCRIPTIONS
A paid-for subscription service could attract a variety of audiences
Families could be key targets
Broadening access beyond traditional gaming audiences
Figure 19: Interest in paid for streaming service for mobile games, July 2019
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Market forecast
Figure 20: Forecast for the value of the UK mobile gaming market, 2014-24
Forecast methodology