The $75 billion global mobile games market presents an enormous opportunity to telecommunications firms looking to diversify their revenues. consistent with a study from Analysys Mason, tapping into the world could allow telecom operators to unlock B2C and B2B revenue opportunities.
The mobile gaming industry has become huge business in recent years. While most people’s minds automatically move to console or PC titles when thinking of digital gaming, mobile gaming is really the most important subsection of the worldwide industry. While roughly two-thirds of all adults worldwide play digital games, 73% of these play mobile games.
As such, mobile gaming generated revenue of $75 billion in 2020 or 51% of worldwide revenue for digital gaming. With this in mind, telecommunications operators are subsequently keen to seek out ways to tap into the industry’s growth potential. so as to ascertain how they could best do this, Analysys Mason examined the key features of the booming market.
According to the researchers, the market’s rapid climb means it’s important to think about what role core companies play within the value chain. Operators can take variety of key roles within the mobile gaming industry so as to capture growth, but 5G is an intrinsic a part of this chance .
Martin Scott, a Principal Analyst at Analysys Mason, explained, “5G will drive spending on mobile gaming from $75 billion in 2020 to $138 billion in 2025, when 30% of the smartphones worldwide are going to be 5G-enabled. 5G will strengthen the expansion of mobile gaming services, giving gamers access to higher-value content.”
At an equivalent time, 5G also will enable subsequent generation of cloud-based gaming services to disrupt the market, because they’re going to be available to new segments of consumers and can facilitate new gaming experiences, like mixed reality. thanks to the reliance of those games on 5G, Ananlysys Mason estimates that each one altogether , 5G will create up to $12.5 billion of retail revenue in 2025 that operators can target.
These opportunities will come from two large areas. Mobile cloud gaming revenue will grow to $6.4 billion in 2025, while mobile XR gaming revenue will grow to $6.1 billion in 2025. However, to understand this value, operators will got to change their strategy regarding the mobile gaming industry. Operators can play a spread of roles within the mobile cloud value chain, unlocking B2C and B2B revenue opportunities within the process.
Analysis Mason noted four ways especially operators could do that . These included being a sales channel partner, with Scott noting they might offer “gaming as a value-added service, or reselling third-party or own-branded services.” during this way, operators’ direct relationship with consumers. within the next few years, they will use those services to tell consumers about 5G benefits, while encouraging them to migrate from 4G.
At an equivalent time, the researchers added, networks could act as service aggregators. within the longer-term, operators could offer services via their own consumer platform and infrastructure via a service aggregator play. Operators have an extended experience of aggregating and distributing content, particularly video, and of selling services through a subscription model via partnerships.
“Operators should use the expansion of 5G-enabled gaming to focus on the B2B opportunity and to create a mobile edge computing (MEC) proposition,” added Scott, “which they will neutralize partnership with other operators and/or public cloud providers. As next-generation gaming ecosystems mature, operators should use their MEC, end-to-end network management capabilities to monetise the gaming service providers’ demand for QoS assurance, strengthening the go-to-market partner role.”
Finally, operators could use their position to become ecosystem development partners, by partnering with gaming service providers to accelerate the event of the next-generation gaming ecosystem. this might include new devices, XR content and supporting infrastructure, along side the offering of a go-to-market partner to further show consumers the worth of 5G and therefore the gaming experience that it offers .