A new report from Juniper Research has revealed that by 2016 total revenues from mobile games will reach $28.9 billion ? a growth of over 38 percent on the 2014 figure of $20.9 billion.
The report highlighted that in an effort to maximize their apps? potential, developers are turning their focus on increasing user lifetime value.
The report 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, developers are increasing lifetime value through analyzing, (re)engaging, and monetizing users, allowing for higher overall returns on investment.
The report found that tablet users will spend more on in-game purchases and generate more revenues per device than smartphone users.
It argues that in turn, the enhanced performance and graphical capabilities of tablet games is resulting in accelerated migration from traditional portable gaming devices.
Nevertheless, Juniper Research said it does not believe that increased gaming activity on smartphones and tablets will necessarily mark the end of this market. Rather, dedicated gameplay hardware will continue to serve a niche gaming audience.
Meanwhile, 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 findings from the report include:
? Over the forecast period, 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 optimization will be enhanced to personalize the discovery process.