As the smartphone continues to take over the world, mobile gaming will outpace the rest of the industry.

Spending on gaming software across all platforms will reach $88 billion this year, according to research from intelligence firm Digi-Capital. The company also forecasts that number will grow 8 percent annually and will surpass $110 billion by 2018. And mobile will drive that growth more than any other sector as spending on smartphones and tablets will already generate more revenue than console games this year — although that doesn’t include sales from hardware like the Xbox One and PlayStation 4 systems. And it also doesn’t include PC games on Steam or free-to-play megahits like League of Legends.

“Where mobile games will take $3 of every $10 spent by gamers on software in 2015, that figure will go up to $4 out of every $10 by 2018,” Digi-Capital founder and managing director Tim Merel wrote in the report. “Mobile games revenue will grow from $29 billion in 2015 to $45 billion by 2018 at 15 percent annual growth. Asia has dominated mobile games revenue since 2013, compared to both North America and Europe, and Digi-Capital forecasts Asia to take over 50 percent of all mobile games revenue in 2018.”

Merel says that “stable, top-grossing mobile games” will continue to make the most money, so expect Clash of Clans, Candy Crush Saga, and Game of War to keep their spots at the top of the charts. Clash of Clans and Candy Crush Saga have cemented their place atop the grossing list on both iOS and Android since 2012, and Digi-Capital doesn’t see that changing.

Mobile Game Developer?
Learn how to drastically increase your mobile revenue.

“This is great for games leaders and their shareholders,” wrote Merel. “But it puts the big squeeze on midtier players and makes breaking through more challenging for indies.”

And as these mobile leaders continue to eat up players and spend on television marketing — like during the Super Bowl — it’s only going to make it harder for smaller developers. Player acquisition costs are already at around $3 per download, which is prohibitively expensive for many studios. It also reduces profit margins for those companies that do manage to break through.

“Despite the squeeze on smaller developers, we’re seeing a big drop in the price ofmobile marketing automation technologies,” Stewart Rogers, an analyst at VB Insight, said. “The very solutions that the likes of Plants vs. Zombies, Rivals at War, and Subway Surfers use to stay ahead of the pack are becoming available to all, and that will continue as the market grows.”

With billions at stake and billions more pouring into the industry every year, the difficulties of the market probably won’t turn many people off from trying. Especially with emerging markets like China, India, and others adopting smartphones at a rapid rate.

http://venturebeat.com/2015/05/04/mobile-gaming-will-leave-console-software-behind-with-45b-in-spending-by-2018/

For the respect of the article i left the title as is, as well as the article but i dont believe this is the whole story. Yes mobile games have done very well for money, but for every game that sells well there is a dajillion that doesnt. And unless mobile can convert people who want in depth games, i dont see consoles/pc ever going away. Two very different audiences

It doesn't matter there two entirely different markets. Kids are never gonna play cod on there iPhone. Only one it effects is handheld market. Imo

I'm inclined to agree with your second post and critique. It's undeniable that mobile is growing, but it seems fairly logical that people will eventually tire of these same games and clones of the same games in the fairly near future, although I don't fit into that demographic that plays those so I might be completely out to lunch. Although, I do work with lots of people that are or have been into a lot of these mobile games, most have moved on to others or moved into nothing so they seems to be done with mobile gaming, at least till the next trendy games comes out.
What I have personally seen the most is children gaming on tablets and smartphones. They seem to be the ones that are playing lots of these games. In airports, malls, coffee shops and all over the place it seems that the tablet and/or smartphone has become the 'parent' or at least baby sitter during these scenarios. Does anyone have any different experiences? I can only speak of my area I live in. I do travel lots, but I haven't had a chance to leave NA yet so it might be a very different scenario in other countries and continents.

I don't think mobile will ever be stable. Look at Rovio...

Everything bottoms out. I don't see mobile games overtaking consoles. And sticking to it. They make a lot. But people aren't gonna keep on buying. What happens when everything clones clones. People won't bother with that game. And all the popular stuff will become old hat. Plus, with people wanting cheap stuff. They can't make amazing games, on them.

I want mobile gaming to die...

The big important question here is: so what?

Mobile game market will grow but console market will remain the same

Either that or it has to start getting alot more like consol games in quality.