Mobile Game Spending Reaches $1.7B/Week - Q1 2021 Report

Mobile Gaming Continues to Thrive Post-Pandemic

The onset of the COVID-19 pandemic significantly boosted the popularity of mobile gaming, as individuals confined to their homes sought entertainment through online games. Remarkably, even with the easing of pandemic-related restrictions, the demand for mobile gaming remains robust.

A recent report from App Annie, in conjunction with IDC, reveals that global game downloads increased by 30% in the first quarter of 2021 compared to the fourth quarter of 2019. Furthermore, weekly spending on mobile games reached a record $1.7 billion during Q1 2021.

Spending Surges Beyond Pandemic Levels

This financial figure represents a 40% increase when contrasted with pre-pandemic levels, as highlighted in the report. The sustained growth demonstrates a lasting shift in consumer habits.

Analyzing regional trends, the U.S. and Germany exhibited the most substantial year-over-year growth in mobile game expenditure within North America and Western Europe, respectively. Saudi Arabia and Turkey led growth in regions outside of the Asia-Pacific area.

The Asia-Pacific region accounted for approximately half of all mobile game spending during the quarter, according to App Annie’s data.

Mobile Gaming Outpaces Other Platforms

The pandemic-accelerated growth in mobile gaming has resulted in mobile platforms surpassing both PC/Mac gaming and home game consoles in terms of global revenue. This year, mobile gaming’s lead over PC/Mac is 2.9x, and its advantage over consoles is 3.1x.

Convergence of Mobile and Console Gaming

A notable trend is the increasing convergence between mobile and console gaming. Modern mobile devices are now capable of delivering graphics and gameplay experiences comparable to consoles. This is further enhanced by the rise of cross-platform compatibility and social gaming features.

Real-time online features, such as player-versus-player combat and cross-play, are particularly prominent in the highest-grossing mobile games. Roblox was the top-grossing mobile game globally on both iOS and Google Play in Q1 2021.

Genshin Impact followed closely, and was recently recognized with an Apple Design Award for its exceptional visual quality during the Worldwide Developer Conference.

Growth in Companion Apps and Ad Sentiment

The report also examined the market for gaming-related advertising and the increasing popularity of mobile companion apps for game consoles, including applications like My Nintendo, Xbox Game Pass, PlayStation App, Steam, Nintendo Switch, and Xbox apps.

While downloads of these apps peaked during lockdowns in April 2020, they continue to exceed pre-pandemic levels.

User perception of in-game mobile advertisements improved in Q3 2020 compared to Q3 2019. Rewarded video ads and playable ads were found to be the most favored ad formats among U.S. users.