As we have come accustomed to, daily revenues generated by mobile games for iPhone in the USA have on average increased by yet another 1% compared to our last channel check one week ago (data provided by www.thinkgaming.com). The gradual increase of the daily revenues generated ever since the beginning of December continues untiringly. Since the beginning of 2014, daily revenues generated by mobile games for iPhone in the USA have now on average increased by around 43% (Top 20).
This is certainly good news for all developers and publishers of mobile games. The fundamental difference compared with previous years is that top grossing rankings are now dominated by free-to-play (F2P) games. F2P constantly engage the player to make small transactions in the game, thereby keeping up a constant revenue stream. In the past, games like Angry Birds were highest up in the rankings and due to their nature of one-time install fees, revenue generation was subject to much more seasonality.
A very good example, in our opinion, as to how developers directly benefit from this trend is Glu Mobile with its smash hit Kim Kardashian: Hollywood. The game is currently ranked #4 top grossing iPhone game in the USA. As of today, this ranking implies daily revenue of USD 320,584. The game was initially released at the end of June. Back then the #4 top grossing iPhone game in the USA generated daily revenues of around USD 280,000, i.e. 13% less than today. Only one month ago, the #4 top grossing iPhone game in the USA generated daily revenues of some USD 294,000, i.e. around 8% below today’s level.
Unfortunately, thinkgaming does not provide daily revenue estimates for the iPad market. However, in our opinion, there is no reason to believe that the underlying trend should be significantly different to the one seen for iPhone. F2P games also dominate the iPad gaming market, so the same reasoning can be applied, we believe. It is on iPad in the USA, where Sweden listed G5 Entertainment has its biggest success with a game called Secret Society. G5 recently released its Q2 2014 report which showed a year-over-year revenue increase of 86%, primarily due to the success of Secret Society.
Follow the latest buzz around G5 Entertainment at www.buzztrader.se. G5 Entertainment is part of the Nordic Investor BuzzTrader portfolio.