Revenues from mobile games will reach $ 25 bn in 2014

Mobile games revenue will overtake consoles next year, says research company Newzoo. The Company estimates that revenues from mobile games will reach $ 25 bn in 2014, and then in 2015 the revenues will exceed $30.3 bn. The updated forecast of Newzoo is more optimistic about the future of mobile gaming on a background of strong growth in sales of games for smartphones and tablets both in developed and emerging markets. In 2017, the mobile gaming market will exceed the level of$ 40 bn.

The Newzoo’s report also predicts that Apple’s earnings from games this year will double those of Nintendo. Apple with its AppStore and Google will earn close to $4 billion and $ 3 bn respectively in games revenues in calendar year 2014. Nintendo’s game revenues amounted to  $2.4 bn last year and will likely be slightly lower this year.

Based on the updated estimates of Newzoo, the mobile gaming revenues in 2014 will grow by 42% in comparison with the revenues in 2013. The North American market is expected to grow by 51% year on year, and Western Europe market - by 47%. The most actively growing market of mobile games will be Southeast Asia and China, where revenues may grow by 86%.

Newzoo also predicts strong growth in Japanese iOS and Android game revenues, offsetting the decline of the region’s previously dominant feature phones. Newzoo also notes that the game revenues from tablets are growing faster than from smartphones.

Newzoo reports that despite the bleak results of market leaders such as Rovio, King, DeNA and Gree, the Company optimistically assesses the general condition of the market, so the forecast has been adjusted in favor of even greater growth.

 The Company’s research shows that the high mobile growth rate is driven by both “organic growth”, lifting the overall market, and “cannibalistic growth”, at the expense of other segments: handheld console and online casual and social gaming. Newzoo notes signs of slower growth in online PC games as spending is diverted to mobile devices.

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