Mobile games have enjoyed immense popularity for years, dominating smartphone apps and generating billions in revenue. However, since 2022, we have observed a decline in their popularity. One of the main factors contributing to this phenomenon is the rapid rise of the TikTok platform. How did TikTok, an app initially intended for short videos, impact the decreased interest in mobile games? Let’s take a closer look, considering data from the Data.ai’s Gaming Spotlight 2023 report.
Evolution of Content Consumption
TikTok revolutionized the way we consume content on mobile devices. Short, dynamic videos that can be endlessly scrolled have proven to be incredibly engaging. Users spend more and more time on TikTok, gaining instant gratification through the quick change of content and algorithms that precisely select materials according to their interests. This form of entertainment has begun to replace other ways of spending time on smartphones, including mobile games, which require greater engagement and sustained attention.
Change in User Preferences
Short videos on TikTok offer immediate emotions and easy access, which is particularly attractive to younger generations. Mobile games, though still popular, often require more time to learn the mechanics, make progress, and earn rewards. Faced with a growing number of entertainment options, users have started to choose those that provide faster thrills. TikTok, with its endless stream of content, perfectly fits these needs.
in this essay i will discuss how tiktok killed mobile gaming👾🎮 pic.twitter.com/vq58niiS5x
— Andrew Gao (@itsandrewgao) June 2, 2024
Mobile Gaming Market Statistics
Despite the decline in popularity, the mobile gaming market still generates enormous revenues. According to Data.ai’s Gaming Spotlight 2023, the mobile gaming market reached over $100 billion this year, accounting for about 55% of the global gaming market. In comparison, the console gaming market reached $43 billion, and the PC/Mac gaming market reached $40 billion.
It is worth noting that in the Asia-Pacific (APAC) region, which generates the highest revenue from mobile devices, there was a 1.7 percentage point increase in mobile game spending in the first quarter of 2023. Meanwhile, in North America and Western Europe, there was a decline in game downloads, which can be attributed to, among other things, inflationary pressures and the conflict in Ukraine.
Algorithms and Personalization
One of the key elements of TikTok’s success is its advanced algorithms that analyze user behavior and suggest content perfectly tailored to their preferences. As a result, every user feels that the platform understands their taste and provides the most interesting materials. In contrast, mobile games often have fixed patterns that can quickly become boring. Personalization on TikTok keeps users coming back more frequently and spending more time, which directly translates to less time spent on other forms of entertainment, including mobile games.
Impact of Community and Trends
TikTok not only delivers content but also creates a community that engages in trends, challenges, and joint projects. Shared experiences and interactions with other users become part of daily entertainment. Mobile games also have their communities, but they often require greater engagement and dedicated time for gameplay. Trends on TikTok change quickly, and users want to stay up-to-date, leaving less time for other forms of entertainment.
Competition from Cloud Gaming
An interesting phenomenon is the growing popularity of cloud gaming (CSG), which also significantly impacts the mobile market. It is estimated that by 2023 there will be 60 million active monthly users of cloud games, generating revenue of $3.8 billion. About 50% of cloud gaming users access them via mobile devices at least once a day, showing that mobile devices remain an important element of the gaming ecosystem.
Conclusion
TikTok, with its innovation, content personalization, and dynamic format, has dominated the mobile entertainment market, significantly affecting the decline in mobile games’ popularity. Users, especially younger generations, have started to prefer short, engaging videos that provide quick thrills and easy interaction. Although the mobile gaming market still generates huge revenues, its importance in the mobile entertainment ecosystem is diminishing, giving way to new, more interactive forms of spending time, such as TikTok. In the face of growing competition from platforms like TikTok and the development of cloud gaming, the future of mobile games seems more uncertain than ever before.
