In 2007, Apple Inc. gave new meaning to mobile technology with the release of its flagship device, the first-generation iPhone. The device acted as a boon to the mobile game development sector, which was otherwise growing with a “snail speed“. Later, in the year 2008, the Internet giant Google also launched “Android operating systemand this eventually started an app war, and both of them became fierce competitors. However, this proved fruitful for smartphone users as the competition resulted in the development of better mobile game apps with great graphics, games Fascinating and excellent sound systems.

Statistics and Predictions –

As time went by, companies brought advanced tools and technologies to develop more sophisticated gaming applications, to appeal to a larger portion of the mobile enthusiast population. According to recent statistics, in the year 2010, the sales of game apps for smartphones and tablets reached $898 million, and it is expected to generate a revenue figure of $1.6 billion by the year 2015.

The overwhelming response experienced by mobile gaming apps can be seen from the following facts:

• 53% of smartphone owners play mobile games on a daily basis.
• Smartphone users spend 14.7 hours a month playing mobile games
• 93% of people pay for gaming apps
• 100 million mobile gamers in the US alone
• 700 million Angry Birds app downloads
• Tiny Tower generated $3 million from in-app purchases
• The biggest revenue generation is through advertisements.

It is worth mentioning that the above figures show only a small insight into the entire mobile gaming industry. However, with the evolution of technology with each passing day, the popularity of mobile gaming is expected to surpass all previous records.

Freemium Model or Paid Model – The Game Changers

The task of selecting the right medium for income generation has always been a game changer. There are three main revenue models in the mobile app development industry:

• free apps – Apps were supported with ads to support revenue generation.
• Freemium Apps (Free + Premium) – Free apps to download, but with in-app purchase options.
• paid applications – Single payment for all features.

No doubt, the freemium model has proven fruitful many times over, but the main revenue generation is still driven by paid gaming apps. Furthermore, expert predictions indicate that revenue from free games with ads is expected to grow by 12.3% by the year 2014. Therefore, free apps are missing the “spark – spark“, and free apps show better potential, the prospects of being innovative and effective are higher in the latter. As a result, a balance in revenue generation between paid and free apps may be felt for years to come.

Word of mouth: the main reason for downloads

No matter what the medium, physical or virtual, “word of mouth” always serves as an efficient form of promotion. Despite the fact that companies are spending heavily to promote their gaming applications, statistics suggest that the advertising medium “word of mouth” still ranks number one in effectiveness. According to a recent survey:

• About 50% of adults learn about new gaming apps from friends and family.
• About 40% of adults learn about app stores, after reading user reviews and favorites list.
• About 25% of adults learn from social networking sites.

However, there is also a long list of mobile gaming websites with a huge influx of web traffic, present on the internet offering game reviews, upcoming apps, tips and tricks. Therefore, companies should focus on using all kinds of efficient media channels to gain maximum coverage and ensure 100% promotion of their apps.

With mobile game apps available for free, it’s easy to fall for and become engrossed in them. Furthermore, from the above statistics, one can easily feel the increasing popularity, highest growth rate, and potential in the mobile game development industry.