The latest forecasts come from Juniper research which says that in an effort to maximise their apps’ potential, games developers are turning their focus on increasing user lifetime value.
The report - Mobile & Handheld Games: Discover, Monetise, Advertise 2014–2019 - found that with the domination of casual gamers playing free-to-play games, developers’ approach has shifted from bulk acquisition of unique players.
Under the new strategy, which brings mobile analytics to the fore, Juniper says that developers are increasing lifetime value through “analysing, (re)engaging and monetising users, allowing for higher overall returns on investment.”
According to the report, tablet users will spend more on in-game purchases and generate more revenues per device than smartphone users, with Juniper arguing that in turn, the enhanced performance and graphical capabilities of tablet games is resulting in accelerated migration from traditional portable gaming devices.
Juniper says, however, it does not believe that increased gaming activity on smartphones and tablets will necessarily mark the end of this market.
Rather, according to Juniper, dedicated gameplay hardware will continue to serve a niche gaming audience, and software will embrace elements of mobile games as reflected by the introduction of PlayStation Now, “which aims to let users play games through online streaming via a per-game or subscription basis.”
Other key findings from the Juniper report include:
• Over the forecast period (2014-2016), the emphasis in interactive entertainment will be on convenience, accessibility, and online streaming.
• Rising disposable income levels accompanying increased smartphone adoption will spur increased in-game purchasing revenues across Latin American, Eastern European and Southeast Asian regions
• With app stores remaining the primary content discovery locations, storefront optimisation will be enhanced to personalise the discovery process.