When you invest, your capital is at risk.

Share

Tap Tap

Call of Duty, FIFA, Fortnite…traditional video games may grab all the headlines but mobile gaming is raking in more cash than consoles and desktop combined.

In fact, 52% of all gaming revenue comes from mobile. Mobile gaming is no small business. In 2020, US$100b was spent on mobile games. Last year, the US Box Office did US$21b in total. Yep, all of Hollywood lost out to Candy Crush and co. 

 

The most popular games are rather unknown in the Western world. Honor of Kings produced by Tencent has made US$13.3b in revenue in just 6 years. Clash of Clans and Pokemon Go have both turned over US$7.5b+ each since their releases. They’re both in the top 5 biggest mobile games of all time. Candy Crush is close behind as the 7th biggest game ever. 

 

While Activision Blizzard and Electronic Arts are known by all investors, the biggest mobile game developers are relatively unknown despite operating in a bigger market. To start, mobile gaming has thousands of options available to gamers. Console gaming has a smaller selection of options.

 

Tencent Games is one of the biggest developers. The Chinese company generates more gaming revenue than Activision, EA and TakeTwo combined. US-listed companies like Zynga are other accessible alternatives.

 

Of course, in-app purchases contribute to these billion-dollar revenue figures. Apple and Google take about a 30% cut of all in-app purchases. With it comes the question of whether they have a monopoly on app distribution.
Apple and Epic Games, creators of Fortnite, have been engaged in a lengthy court battle. In August 2020, Fortnite introduced a new payment option for in-app purchases, to bypass Apple’s compulsory fee. Apple pulled their game from the App Store in retaliation. Epic Games sued. The judge ruled that Apple did not have a monopoly and while they had considerable market share, were doing nothing illegal. The judge also ruled that Apple could no longer prevent apps from directing users to other payment gateways. No concrete changes have been made yet as court proceedings drag on. In short, not much has changed.


Want more?

You know what to do

Insights, trends and company deep dives delivered straight to your inbox.


Stake logo
Over 7,000 5-star reviews
App Store logoGoogle Play logo

Subscribe to our free newsletters

By subscribing, you agree to our Privacy Policy.

Stake is the trading name of Hellostake Limited, a company registered in England and Wales (Company no. 11676409). Hellostake Limited is authorised and regulated by the UK Financial Conduct Authority under the Firm Reference Number 830771. Registered address: 85 Great Portland Street, London, W1W 7LT, United Kingdom.

When you invest, your capital is at risk.

The value of your investments can go down as well as up and you may receive back less than your original investment. Any advice is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate independent taxation and legal advice. The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services.

At Stake, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Please view ourTerms & Conditions,Privacy PolicyandDisclaimers before deciding to use or invest on Stake. By using the Stake website or service in any way, you agree to our Privacy Policy and Terms & Conditions. All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance

Copyright © 2024 Stake. All rights reserved.