As the mobile gaming industry continues to evolve, game developers are turning to innovative technologies like artificial intelligence (AI) to accelerate development, improve gameplay, and boost revenue. In this report, we'll explore the latest trends in mobile gaming, including the rise of cross-platform projects, multiplayer games, and AI-powered game development.
5 Key Trends
Developers are leveraging AI to streamline processes, accelerate development, and enhance player engagement. This shift is driven by the need for studios to adapt to changing market conditions, such as declining IAP revenue and increased competition. To stay ahead of the curve, developers are prioritizing multiplayer projects, building strong franchises, and experimenting with new monetization strategies.
AI Usage in Games
The average game development time has increased from 218 days in 2022 to 304 days in 2023, highlighting the need for studios to find ways to speed up processes. To address this challenge, developers are turning to AI-powered tools, which help improve animations (46%), write code (37%), generate art and levels (36%), and automate playtests (36%). Prototyping takes less than 3 months for 96% of studios, with 42% completing the process in under a month.
AI is particularly useful in world-building, where it helps create NPCs, generates unique gameplay moments, recognizes speech, and provides contextual NPC responses. The technology is most commonly used by AR/VR developers (29%), multiplayer game creators (28%), casual developers (27%), open-world project teams (25%), and RPG game studios (25%).
Despite the benefits of AI integration, developers face common challenges, including lack of time (43%), technical skills (24%), and unawareness of AI capabilities (20%). To overcome these hurdles, studios are investing in training and resources to help them fully leverage AI-powered tools.
Mobile Market Status and Revenue Sources
The mobile gaming market is experiencing significant growth, with DAU increasing by 4.5% in 2023 compared to 2022. IAP revenue is declining, however, with a median ARPDAU of $0.015 in 2023, a 13% decrease from the previous year.
Advertising revenue has seen significant growth, rising by 26.7%. In particular, simulation games, casual projects, and puzzles have seen significant increases in IAA revenue. Projects featuring rewarded video and offerwalls have more daily sessions (3.12) than those with only rewarded video or offerwalls alone.
Cross-Platform Projects
Small studios are leading the charge in releasing cross-platform projects, with a 71% increase since 2022. Large studios are also getting on board, with 95% of teams with over 50 employees offering cross-play functionality.
The most popular cross-platform genres include RPGs (38%), shooters (33%), fighting games (33%), and strategies (30%). Studios prioritize cross-platform support at the pre-production stage, releasing projects simultaneously or gradually across multiple platforms.
Multiplayer Games
Mobile multiplayer games have a significant advantage in terms of MAU, with a 40.2% higher user base compared to single-player games. The majority of studios (68%) are working on multiplayer projects, with 69% of cross-platform games featuring this type of gameplay.
Developers face several challenges when it comes to multiplayer projects, including limited budgets (53%), managing feedback (47%), staff limitations (44%), and lack of technology (43%). To succeed in the competitive world of mobile gaming, developers must prioritize user expectations, including free communication, lag-free play, fair matchmaking, and shared progress.