Tuesday, February 07, 2012

Mobile Gaming and In-App Purchases boosting Revenues for Free-to-Play Games

Parks Associates releases whitepaper "Trends in Digital Gaming: Free-to-Play, Social, and Mobile Games"

The percentage of U.S. gamers who regularly download games or gaming apps to their mobile devices increased from 7% in 2008 to 18% in 2011, growing in parallel with rising adoption of smartphones and tablets, according to a new whitepaper from Parks Associates. Among tablet owners, 71% of adults and 79% of teens play games on the device at least one hour per month. This growth of mobile gaming is expanding the revenue stream for Facebook games, where gamers already spend $29 per month, and free-to-play games, where gamers spend $21 per month to purchase virtual goods and upgrades.

The whitepaper “Trends in Digital Gaming: Free-to-Play, Social, and Mobile Games" shows the game industry is poised for a significant shift in revenue models as smartphones and tablets are changing the gaming population and how players pay for games. Players can easily make in-game purchases, without having to create a new, separate account, because the game payment system is integrated with their established mobile and app-store accounts.

"In-app purchases greatly expand monetization of the free-to-play model, thanks to seamless payments," said Pietro Macchiarella, Research Analyst, Parks Associates. "Already, most of the top grossing games on iTunes and Android can be downloaded for free and generate the majority of their revenues via virtual purchases. While mobile players are often characterized as 'casual gamers,' they spend a comparable amount of money on free-to-play titles as their peers spend on console games."

As tablet penetration increases, the availability of more complex games will facilitate higher monetization of games running on these devices.

"Games running on smartphones and tablets have a significant advantage in the free-to-play business model, compared to their counterparts on PCs," Macchiarella said.

Download “Trends in Digital Gaming: Free-to-Play, Social, and Mobile Games" at www.parksassociates.com/trendsingaming. Contact sales@parksassociates.com, 972-490-1113.

About Parks Associates: Parks Associates, a woman-owned and woman-led internationally recognized market research and consulting company, specializes in emerging technology solutions serving the consumer and small to medium business (SMB) markets. Celebrating its 35th year in 2021, Parks Associates is a partner to companies navigating the changing consumer technology landscapes through data-driven market insights, extensive consumer and industry intelligence, custom marketing services, and executive networking experiences and conferences.

The company's expertise includes home automation, control systems and security, digital media and platforms, entertainment and gaming, home networks, internet and video services, connected health and independent living solutions, mobile applications and services, support services, consumer electronics, and energy management solutions.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit, Smart Energy Summit: Engaging the Consumer, and Future of Video: OTT, Pay TV, and Digital Media. http://www.parksassociates.com

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