The social gaming market allows players to connect and play games with their friends and family over the internet. Social games involve a wide variety of genres including casual, adventure, simulation and strategy games. They provide an interactive experience through innovative gameplay, virtual items, community features and rewards. The social element of these games enhances player engagement while easy access through mobile apps and browser-based play has significantly expanded the consumer base.
Key players like Zynga, Activision Blizzard, Electronic Arts (EA), King and Take-Two Interactive have established a large player base on Facebook, Mobiles and proprietary platforms with their blockbuster franchises.
Key Takeaways
Key players operating in the Social Gaming market include Zynga, Activision Blizzard, Electronic Arts (EA), King and Take-Two Interactive. Zynga is the leading developer of the popular social games like FarmVille and Words With Friends on Facebook. EA’s The Sims Social was one of the most played games on Facebook for several years. King remains the highest grossing publisher on mobile with titles like Candy Crush Saga.
The increasing internet and smartphone penetration around the world has rapidly expanded the potential customer base for social gaming. India, China, USA, Japan and European countries are witnessing growing demand for social, mobile and online games.
Major social gaming companies are expanding globally through strategic acquisitions and partnerships. Zynga acquired Turkish mobile games studio Peak to enter new markets in Asia and Europe. EA purchased Glu Mobile to enhance its mobile gaming portfolio. Social casinos represent a multi-billion opportunity with international expansion.
Market Key Trends
One of the key Social Gaming Market Trends gaining momentum is the introduction of play-to-earn mechanisms. Starting from Axie Infinity, several blockchain-based games now reward players with NFTs or cryptocurrencies for their time and skills spent in the games. This has incentivized global participation from developing regions with the promise of supplementary income. Many mainstream social game developers are also experimenting with play-to-earn to reinvigorate older titles and franchises.
Porter's Analysis
Threat of new entrants: The social gaming market poses low threat to new entrants as it requires large investments in developing sophisticated games and acquiring users. Existing players have strong brand loyalty and network effects that new entrants find difficult to overcome.
Bargaining power of buyers: Individual gamers have high bargaining power as there are many social gaming options available. However, dependence over big tech platforms like Facebook reduces bargaining power to some extent.
Bargaining power of suppliers: Social gaming studios have moderate bargaining power over tech platforms as top platforms need a constant supply of engaging games and new user acquisitions become difficult without publisher support.
Threat of new substitutes: Threat from new substitutes is high as novel gaming and entertainment formats involving Augmented Reality, eSports, Virtual Reality keep emerging. Consumer preferences are also moving towards mobile-first casual games.
Competitive rivalry: The market is highly competitive with companies investing heavily in developing engaging games and frequent content updates to retain users. Acquisitions are also common to gain users, talent and libraries.
Geographical regions: North America accounts for the largest share of the global social gaming market in terms of value due to high smartphone and internet penetration with USA leading the adoption.
The Asia Pacific social gaming market is projected to grow at the fastest pace during the forecast period due to rising internet and smartphone adoption in major countries like India and China coupled with investments by global players to capture the massive regional user base attracted by local language offerings.
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About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
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