1bn global smartphone sales is big news for export focused UK video game industry

By January 28, 2014 TIGA News

Yet demand for cheaper devices and plateauing high-end sales means immediate opportunity may lie more in greater reach than additional revenue

Technology research group, IDC today revealed worldwide smartphone sales surpassed 1bn last year for the first time.

On the face of it this is encouraging news for the UK videogame industry, given TIGA’s own research shows 37% of all UK studios are now primarily focused on mobile, a figure that rises to 53% for studios founded between 2011 and 2012. 

Yet it should be noted that this increase in sales is being driven by demand for cheaper devices, whilst growth is slowing at the top end of the market. This means that whilst developers have a growing global audience to potentially sell games to, these new markets will likely deliver less revenue per user than is typically generated in Western markets.
 
Dr. Richard Wilson, CEO, TIGA, commented:
 
“The attraction of the global mobile and tablet market to UK developers is clear, with 2013 smartphone sales now confirmed to have exceeded 1 billion and comparatively fewer barriers to entry and lower development costs, it is a significant and still growing opportunity.
 
“However, the slowing demand we are seeing in mature smartphone markets should provide a note of caution. There is still a long way to go, and much work to be done, as the mobile gaming industry continues to rapidly both its technology and business models.  
 
“Nonetheless, the lower barrier to entry which the free to play model offers to both consumers and developers, and the fact that all businesses adjust pricing to account for regional differences in income and affordability, means todays news points to a bigger global opportunity for the UK’s export focused mobile developers.”

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