Mobile gaming is now the dominant driver in the global gaming market accounting for more revenue than console and PC combined and the majority of all growth.

This shift has been enabled by improvements to internet infrastructure, from stronger mobile networks to faster wireline bandwidth to better cloud-based delivery models; however, there hasn’t been a significant amount of direct monetisation by telcos, as they have only dipped their toes, at best, into this new source of demand.

Over the last ten years, the market has transitioned from a console and PC-based opportunity to one that is increasingly mobile first. Across many major markets mobile gaming is now the biggest games opportunity and the broadest in terms of audience size and demographics. In key territories such as China, Japan and South Korea, consumers play a wide variety of games on mobile devices including high-end games that originate on PC and console platforms. This has increased demand to either migrate PC and console games to mobile platforms or to develop higher-quality mobile games. Online and Mobile content dominates the global games market – accounting for the majority of global business.

In January 2019, our US research and consulting partner, Altman Vilandrie & Company conducted a survey of four major countries (U.S., China, Japan and U.K.) to determine consumer preferences and trends in gaming. The findings, some of which are highlighted in this report, show an industry quickly shifting toward Mobile gaming, which has made gaming more accessible and has changed the way the industry develops and monetizes games. Still, the survey found that traditional gaming platforms (Console and PC) are resilient, and gamers are open to trying new platforms and formats.

In April 2019, Venture Insights conducted a survey in Australia to determine consumer preferences and trends in mobile gaming and how the market may evolve with the arrival of 5G. The findings that are discussed in this report show that mobile gaming users are more willing to pay a premium for 5G services and handsets as compared to regular consumers. In this report, we analyse the findings across both surveys and highlight the opportunity for telcos in the mobile gaming space.

Contents

Key takeaways

Introduction

What’s happening in Australia?

• 5G will fuel a new wave of mobile gaming innovations.
• Mobile gaming trends and consumer preferences – Australia

Gaming market trends – US, China, Japan and UK

• Mobile is the most popular gaming platform
• Gamers waiting on AR/VR
• Mobile and F2P expand gaming accessibility and player base
• Rise of new content and revenue models
• Gamers increasingly playing online and “on-the-go”

Conclusion

List of charts/tables

Figure 1. Mobile gaming usage is increasing [Q. On average are you:]

Figure 2. In a typical day, about how much time do you spend playing games on your smartphone?

Figure 3. Most frequently used locations for playing mobile games in Australia

Figure 4. Would you be willing to pay a premium for 5G service when available?

Figure 5. Would you be willing to pay more for a 5G enabled mobile gaming experience?

Figure 6. Mobile gamers that would consider upgrading their mobile plan and smartphone to 5G when it becomes available

Figure 7. Mobile gamers that would be willing to pay a premium for a 5G handset

Figure 8. Would you consider changing your household fixed broadband connection to a 5G fixed wireless broadband home connection when available? (mobile gamers only)

Figure 9. Do you game on any of the following platforms? (Overall results)

Figure 10. Do you game on any of the following platforms?

Figure 11. Have you ever played an AR/VR game?

Figure 12. Which platforms do you use for gaming? (by gender)

Figure 13. Do you subscribe to any game-related services? (All paid-for services; excludes China)

Figure 14. How many hours per week do you spend watching game-related video?

Figure 15. Do you play mobile games while commuting or traveling?