Mobile gaming has taken center stage, propelling platforms to adapt and innovate at an unprecedented pace. As the demand for mobile gaming continues to soar, developers and phone manufacturers are racing to create engaging experiences that captivate gamers on-the-go. According to Newzoo, mobile gaming profits accounted for a staggering 49% of the global games market in recent years – a figure expected to rise even higher by 2026.
The proliferation of alternative app stores is set to further boost this growth, as phone providers and console creators compete fiercely for the attention of gamers. Zooming out, we see that PC-connected consoles are no longer the norm; instead, mobile phones have become the go-to gaming device for Gen Z and millennials alike, with 60% of Gen Z gamers and 64% of millennials playing on their smartphones.
While Nintendo's Switch remains a popular choice among gamers, the release of the Switch 2 in 2026 is expected to keep pace with Valve's Steam Deck. Interestingly, both Gen Zers and millennials also play on other handheld consoles, highlighting the enduring appeal of portable gaming.
As platforms previously uninvolved in gaming begin to develop titles, we're witnessing a seismic shift in the way users engage with their favorite services. YouTube, Netflix, Sling TV, and LinkedIn have all added games this year in an effort to increase revenue per user and make their platforms more sticky.
However, not every company has been successful in this endeavor; some have learned that developing big-budget titles is better left to dedicated game publishers. For instance, Netflix closed its AAA gaming division in October, likely due to the high costs and long-term production timelines involved.
The evolution of smartphone technology has also played a significant role in the growth of mobile gaming. New phone models from Apple, Samsung, and Asus have featured powerful CPUs and high-quality displays that are primed for gaming and can handle more graphically complex titles. This could encourage consumers to pay for premium mobile versions of AAA games that were traditionally reserved for consoles.
As we move into 2026, the mobile gaming landscape will likely continue to evolve further. Devices will become even more powerful, allowing developers to push the limits of mobile gaming without compromising quality. We may see more crossovers from streaming services and social media platforms as they look to capture a bigger share of the gaming audience.
However, these businesses must focus on what games and experiences their audiences are likely to play, and what their brands are known for, to avoid overspending. By embracing AI in mobile apps, developers can create innovative, engaging experiences that drive growth and success in this lucrative market.