Mobile Gaming Revenue Increased in 2024 Amid Evolving Market Trends

According to a study by Sensor Tower, mobile games saw a year-over-year growth in in-app purchases (IAP) revenue for the first time since 2021. The data indicates that overall mobile app revenue has eventually surpassed game revenue on the App store, while also noting a 6% decrease in new game downloads in 2024. 

The data, at face value, implies that new mobile games will struggle to find success in 2025, as they need a very strong appealing factor to compete with already established titles. For some context, the number of new games ranking in the top 1,000 downloaded apps has more than halved since 2021.  

In an exclusive interview with Gamesbeat, Jonathan Briskman, Sensor Tower’s Principal Market Insights Manager, said, ”players often have a game or games they’re spending time in already, and new entrants need a very strong argument to convince these players to spend time on their game instead.”

He then references Pokemon TCG Pocket, granting a huge part of its success to its massive IP and nostalgic charms. 

According to the same study by Sensor Tower, as quoted by Gamesbeat, simulation and puzzle games achieved the highest number of downloads among mobile games in 2024, while strategy games overwhelmingly lead in revenue generated by in app purchases. 

The increase in revenue can potentially be attributed to the shifting marketing strategies, with mobile games utilizing simplified gameplay alongside implementing “progression systems that increase lifetime value.” 

“They use a combination of in-app purchases and ad monetization, making them less vulnerable to market shifts that damage either monetization strategy,” Briskman shared. 

The mobile game market achieved $80.9 billion in 2024, a number Sensor Tower predicts will go up in 2025.