Mumbai: ‘Survive to ‘25’ may be this year’s unofficial games industry slogan, but positivity and optimism endure among the 454 senior mobile game developers interviewed for the research. That’s despite a year-on-year mobile gaming revenue decline of 2.1% in 2023, a funding slowdown, major mobile publishers pausing new game development, and layoffs totalling more than 10,000 across the games industry in 2024. 51% of those surveyed say the current wave of layoffs is mostly over, while 83% of respondents have managed to raise capital to help develop, launch or market a mobile game.
Sandsoft, a mobile-first game developer, publisher and investor, today releases a study of mobile game developers’ feelings about their industry and, specifically, mobile game publishing. The Publisher Perception Report reveals an industry that’s ready to move on from the gloom that has dominated recent years, with 81% of mobile developers working on new titles.
Access to capital emerges as a key theme of the research, conducted among US, Spanish and French game developers, and an important part of the value proposition of mobile game publishers. Among developers who have raised, publishers are second only to strategic investors as the most prevalent source funding, while access to capital is viewed as one of publishers’ top three most valuable services. With self-publishing seen by many game developers as a key measure of success, publishers must strive to add as much value as possible. 34% of those surveyed feel publishers do provide a valuable service, with a further 39% saying publishers are a necessary part of mobile gaming.
David Fernández Remesal, CEO of Sandsoft, said, “In a market where launching new games is exceedingly tough, if publishers are to provide value to game developers, they have to be a force for good. We wanted to better understand the needs, hopes, and concerns of mobile game developers across the industry, so we asked them directly. We’re sharing the findings because we want to see success for the entire mobile games industry, which means helping developers and other publishers better understand how they can work together going forward.
“If you take one thing from our Publisher Perception Report, it should be that positivity and optimism endure among developers despite obvious challenges. In the quest to make fun and engaging experiences, nothing can be more important than that.”
While the game developers surveyed are bullish about their future prospects, they’re far from oblivious to the challenges they face. Among developers who are working on new titles, just 9% have progressed as far as the soft launch stage. Almost half (49%) anticipate further significant layoffs, 44% attribute the layoffs primarily to overhiring and mismanagement, while 67% are concerned for their own job security. When it comes to the publishing landscape, 27% of respondents feel publishers take more than they give due to concerns about unfavorable deal terms and revenue share, or loss of creative control.
Key findings from The Publisher Perception Report:
New games now: 81% of experienced mobile game developers are working on at least one new title. 83% have raised capital to help develop or market a mobile game.
Publisher pain versus gain: 34% of mobile game developers say publishers provide a valuable service. On the other hand, 27% of mobile game developers feel publishers take more than they give. Developers who have previously worked with a publisher give the collaboration an average performance rating of 7.7/10.
Choosing a publisher: The deal terms on offer are the single most important factor in publishing deals, cited by 39%. 87% of mobile game developers say it’s important that their publishing partner has a diverse team.
Emerging mobile gaming hubs: Latin America is seen as the most attractive emerging market to publish games into, while Southeast Asia is felt to be producing the best homegrown content. 93% of developers say it’s important to localise and culturalize gaming content.
Hyper hybrid: Hybrid-casual is viewed as the most viable type of game in the current market (43%) followed by casual (34%). Just 15% feel it’s hypercasual.
Market challenges: Access to talent is most regularly cited as the industry’s biggest challenge despite huge layoffs. There is little consensus, however, with issues such as saturation and discoverability, rising UA costs and difficulty raising capital also cited.
Layoffs: When it comes to job losses, experienced developers are split as to whether they’re largely over (51%) or will continue (49%). The majority are concerned for their jobs and see unionization as a positive.
Emerging tech: 90% of mobile game developers say that it’s important that AAA quality gaming is available on mobile devices in the future. 84% are using AI in their development processes, and 34% use blockchain technology.
