Mobile gaming revenue is expected to grow at a compound annual growth rate (CAGR) of 5.57%, reaching $126.06-billion in 2025 and $156.58-billion by 2029.
This is revealed in the second quarter 2025 edition of The Xsolla Report: The State of Play. The research provides insights, trends, and opportunities shaping the gaming landscape.
In 2024, global mobile app usage reached 4.2-trillion hours, marking a record high and contributing to $150-billion in consumer spending across mobile platforms. Mobile gaming accounted for more than half of this total. Although overall game downloads declined by 6% to 49.6-billion, in-app purchase revenue increased, suggesting stronger user engagement and higher value per player.
An analysis of genre performance in mobile gaming highlights significant disparities in outcomes. Role-playing games (RPGs) led in revenue, generating $2-billion from in-app purchases with a 7.2% success rate. Strategy games followed with $352-million in revenue and a 3.8% success rate. Simulation games achieved the highest reach, passing 1-billion downloads, and recorded the highest success rate at 10.2%, indicating comparatively strong engagement and retention.
Despite these figures, the mobile gaming market remains highly competitive. Only 1.9% of new titles surpassed $1-million in revenue, while 62% generated no revenue, reflecting the challenges faced by new entrants.
In response, some developers are exploring direct-to-consumer (D2C) models. A recent survey of EU-based developers showed that 23% have adopted D2C strategies, 12% are in the process of building them, and 62% have not yet implemented such approaches.
“The shift in mobile is clear – players are spending more, but on fewer, better-supported games,” says Chris Hewish, president of communication and strategy for Xsolla. “For developers, combining hybrid monetisation and distribution strategies is essential to long-term sustainability.”
Seventy-two percent of developers are using hybrid monetisation models that combine in-app purchases, subscriptions, and advertising to optimise revenue and expand audience reach. These models, along with LiveOps and strategic intellectual property collaborations, are playing a key role in shaping mobile monetisation strategies heading into 2025 and beyond.
* Download the Q2 2025 Edition of ‘The Xsolla Report: The State of Play’ here.