Description
Write a Competitor comparison part of the mobile game industry. Select 2 companies that focus on mobile game development and write a strategic assessment for each of them, than write the comparison and some advices about their advantages and weakness. Finally, draw a conclusion based on the report attached.
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Identification of Mobile Game
Mobile games refer to gaming software that runs on mobile phones (Jin 2016). This
industry represents a convergence of innovative technology and entertainment elements,
undergoing rapid development at an unprecedented pace. With the increasing prevalence of
smartphones and continuous advancements in network technology, mobile games have
become a daily entertainment choice for billions of users worldwide. According to Cikaric
(2023), the number of mobile game players reached 2.6 billion in 2021 and has been
consistently rising year by year in regions such as Latin America, the Middle East, and Asia
Pacific, propelled by the widespread adoption of smartphones and improvements in network
infrastructure.
From simple standalone casual games to complex multiplayer online role-playing games,
the mobile gaming industry offers a diverse range of game types, catering to the varied needs
of different user demographics. As of the end of 2023, statistics indicate that the Google Play
Store hosts approximately 477,877 downloadable games, while the Apple App Store boasts an
astounding 957,390 mobile games—a staggering quantity that underscores the immense
profitability of this industry to a considerable extent (Stojanovic 2023).
In the society nowadays, mobile game companies from around the world are eagerly
gearing up to compete for more market share by attracting new players and developing
innovative gameplay and transaction models. Taking the example of the European and
American markets, the renowned development company Electronic Arts (EA) holds a
substantial market share, renowned for its rich game content and well-known game series
such as “FIFA Mobile” and “Plants vs Zombies” (EA 2023). EA, with its global recognition
and distinctive gaming style, has firmly established its presence in the mobile gaming market.
As a company that originated in the realm of computer games, EA has garnered long-standing
support and anticipation from players. Their transition of many classic intellectual properties
(IP) from PC games to more accessible mobile platforms has been noteworthy. In 2021, EA
further strengthened its position in the mobile gaming industry by acquiring the popular
mobile game publisher Glu Mobile. The influx of additional skilled developers has enabled
the company to expand its influence to a broader global audience (EA Press Release Details
2021).
For Japan, a major powerhouse in the electronic gaming industry, Nintendo, a company
with a long history, has made significant strides in mobile gaming, despite its origins in
gaming consoles. The mobile games from Nintendo share some similarities with those of EA,
as Nintendo has also developed mobile versions of many of its classic console games.
However, Nintendo’s developers have been particularly dedicated to leveraging their iconic
characters and their stories, combined with the convenience of mobile gaming, to create
deeply engaging spin-off works (Nintendo n.d.). “Pokémon GO,” released in 2016, is a
quintessential example. Nintendo licensed the software development to Niantic and, by
integrating Augmented Reality (AR) technology, successfully captivated a global audience
with this release (McGuire 2019). Long-time fans of these characters have described the
experience as a dream come true and highly immersive. An additional notable impact of this
mobile game has been its encouragement for players to engage more in physical activities.
According to a study by Wang and Skjervold (2021), people spent more time in physical
activities after playing Pokémon GO. This led to improved health outcomes due to factors
such as reduced alcohol consumption, skipping unhealthy habits, and weight loss, although it
is important to acknowledge that excessive involvement in the game has also led to accidents
and other negative issues.
In China, Tencent is the leader in the mobile game industry. This Shenzhen-based
company has a number of best-selling games, among which “Honor of Kings” and “Game for
Peace” are the most popular among players. The former is in the genre of multiplayer online
battle arena games, and its successful and stylish character designs and challenging game
mechanics make it stand out in the market. It has achieved impressive success in both China
and international markets. Data shows that “Honor of Kings” revenue reached US$220
million on the App Store and Google Play dual platforms in July 2023 (Xu 2023). “Game for
Peace” is a very attractive strategic survival shooting game. It has the successful
characteristics of hundreds of people competing in the same field and real-life maps. It has
attracted a large number of players with its realistic graphics and smooth game experience
(Tencent Games 2023). The actual situation is that these two mobile games respectively
occupy the first and second places in the Chinese market in terms of monthly active users
(MAU) in the survey (Statista 2023). However, China’s mobile game regulations have had a
certain impact on Tencent’s game industry. These regulations include restrictions on minors’
gaming time, real-name authentication systems, and censorship of game content. This is both
a challenge and an opportunity for Tencent (Liang 2023).
Mobile games target a broad audience, encompassing users of various age groups and
interests. Casual games are primarily designed for players seeking relaxation and time
diversion, exemplified by titles such as “Candy Crush” and “The Sims Mobile.” Role-playing
games appeal to those who enjoy immersive narratives and adventures, with action roleplaying games (ARPG) particularly favored by contemporary teenagers, as seen in the global
phenomenon “Genshin Impact.” Strategy games cater to players who relish challenges in
critical thinking and planning, as demonstrated by “Clash of Clans.” Generally, mobile games
tend to integrate multiple game modes to provide players with increased allure and
entertainment. In order to further investigate, our team designed a simple questionnaire to
survey mobile game players around us (n=34). In the question of “likeness of game types”, the
cumulative scores of the seven categories ranged from 90 to 90. 133, does not show much
difference (Table1).
Game types
Like very
much
Somewhat
interested
Normal
(3)
Less
interested
Don’t like
at all
Total points
Adventure Game
RPG
Action Game
FPS
Strategy Game
Music Game
Card Battle
Game
(5)
(4)
3
12
1
6
12
10
7
10
5
6
6
13
10
10
13
13
14
5
5
8
10
(2)
(1)
5
3
8
4
2
3
5
3
1
5
13
2
3
2
107
126
92
90
133
123
117
Table 1: Likeability Score of Mobile Game Types. Source: Table adapted from Authors
(2024).
Origin
The rise of the mobile gaming industry is closely intertwined with the widespread
adoption of smartphones. tracing back to the 1990s, the initial mobile games were installed on
keypad phones, such as the classic game “Snake” on Nokia devices. Due to their simple
operations, these games gained popularity. With the development and ubiquity of smart
mobile devices, the mobile gaming industry has undergone a revolutionary transformation,
evolving into highly interactive and visually stunning smartphone games today
(Mobilegamerskull 2023).
Simultaneously, compared to one-time transactional purchases, the innovation in the
recharge system provides players with more opportunities and incentives for in-app
purchases, including the in-game currencies and items mentioned in our survey. This has
established a sustainable revenue model for gaming companies (BBC News 2021).
Furthermore, co-branding collaborations have emerged as a popular trend, not only enriching
game content but also creating new market opportunities for brands (Li 2018).
On the technological front, the emergence of cloud gaming technology enables players to
enjoy high-quality gaming experiences without relying on specific hardware. Additionally, the
application of technologies such as virtual reality (VR) and augmented reality (AR) has
further expanded the gameplay and experience of mobile games, bringing unprecedented
interactivity and immersion to the industry (Jahagirdar 2023). These innovations not only
diversify the forms of games but also propel the mobile gaming industry into a new stage of
development.
Location
Asia, particularly China, plays a pivotal role in the global mobile gaming industry. Not
only is it one of the largest mobile gaming markets globally, but China is also a crucial hub
for mobile game development and innovation. Geographical clusters in cities like Beijing,
Shanghai, and Shenzhen serve as significant technological and business hubs that hold
paramount importance for the industry’s growth. These regions concentrate a considerable
number of technical talents, innovative enterprises, and capital, fostering an ecosystem
conducive to information exchange, technological collaboration, and market expansion (Wang
and Mao 2013).
As for Hong Kong, positioned in a region with a thriving and modernized economy in
China, has experienced active development in the mobile gaming sector. This reflects the
highly digitized lifestyle and robust technological infrastructure prevalent in the area. Driven
by a population adept in technology and a strong demand for immersive gaming experiences,
the mobile gaming market in Hong Kong is flourishing. With a vast and diverse user base,
Hong Kong is considered an indicative regional market. However, it also faces challenges
such as intense competition and evolving user demands (Yang 2018). Therefore, gaming
companies need to continually innovate, providing unique and appealing game content.
Size
hinese mobile gaming companies wield substantial sales, efficient production capacity,
and robust asset foundations, positioning themselves significantly in the global mobile
gaming market. According to Verot (2023), the industry’s revenue surpassed 228 billion yuan
in 2023, establishing China as the world’s largest mobile gaming market. This dominance is
exemplified by major players such as Tencent, NetEase, and miHoYo.
Tencent, as one of the largest internet companies globally, boasts formidable capital
strength and global operations, contributing to its extensive influence in the market.
Blockbuster games like “Honor of Kings” have allowed Tencent to consistently maintain a
sizable market share. NetEase is another key player renowned for classic games like “Fantasy
Westward Journey.” In the Chinese market, NetEase excels, with applications it operates, such
as “Justice,” “Racing Master,” and “Badlanders,” boasting monthly active users (MAU)
exceeding 7 million (Statista 2023). miHoYo, a dominant force in the MMORPG field, has
risen to prominence with titles like ” Honkai series ” and “Genshin Impact,” swiftly becoming
a rising star in the Chinese mobile gaming landscape. Their emphasis on high-quality game
content and visuals has garnered a substantial fanbase, even making miHoYo synonymous
with “Chinese domestic mobile games” to foreign players.
Within the mobile gaming industry, there is a noticeable trend of concentration among
companies. Larger corporations often expand their market share and increase production
capacity through strategies such as acquiring smaller companies and engaging in investment
collaborations. This trend is evident in the minimum efficient scale of factories, where larger
companies can more effectively address technological challenges, market changes, and user
demands. Overall, the industry exhibits a certain degree of market concentration, dominated
by a few major companies. The competitive landscape of these companies is robust yet fierce,
shaping the modern landscape of the Chinese mobile gaming market through continuous
innovation and market expansion.
Appendix: The main test questionnaire
Mobile gaming habits survey 手机游戏习性调查
Thank you for your participation.
This questionnaire is intended to analyze the habits of today’s mobile game players by
understanding your playing and consumption behavior of mobile games.
感谢您的参与。
这份问卷是想要透过了解您对手机游戏的游玩与消费行为，分析现今手机游戏玩家
的习性。
1-1. Your gender 您的性別
Male 男性
Female 女性
1-2. Your age 您的年龄
Under 18 years old 低于 18 岁
19-30
31-50
Over 50 大于 50 岁
1-3. The device you use to play 您用来游玩
的装置
Personal mobile phone 自用手机
Game mobile phone 游戏专用手机
Tablet 平板电脑
Other:
1-4. Name of the game you are playing: (Chinese or English)
您游玩的游戏名称：(中英文皆可）
2-1. How much time do you spend playing
mobile games during your day?
您一天當中，花費在遊玩手機遊戲的時
間？
more than 5 hours 多於 5 小時
4-5 hours 4-5 小時
3-4 hours 3-4 小時
2-3 hours 2-3 小時
1-2 hours 1-2 小時
less than 1 hour 少於 1 小時
2-2. Among the game types below, please
mark them according to your preference.
在下面的遊戲類型中，請依照您的喜好
Like very much (5) 非常喜歡
Somewhat interested (4) 有點興趣
Normal (3) 普通
程度給分
Less interested (2) 較沒興趣
Don’t like at all (1) 完全不喜歡
⚫
⚫
冒險遊戲 Adventure Game: 例如
《暗黑破壞神》、《生化危機》系
列
角色扮演遊戲 RPG: 例如 《原神》
《天堂 2M》
⚫
⚫
⚫
⚫
⚫
動作遊戲 Action Game: 例如 快打
旋風 FINAL FIGHT》、《龍與地下
城 D&D》
第一人稱視點射擊遊戲：FPS(First
Personal Shooting Game)：例如 《反
恐精英 cs》、《絕地求生》
策略遊戲 Strategy Game：例如《植
物大戰僵屍》《魔獸爭霸》
音樂遊戲 Music Game: 例如《太鼓
達人》《節奏大師》
卡牌對戰遊戲 Card Battle Game :例
如 《遊戲王：決鬥聯盟》《漫威：
瞬戰超能》
2-3. Which region do most of your favorite
mobile games come from? 您喜愛的手機
遊戲大多來自哪個地區?
Taiwan, Hong Kong and Macao 台港澳
China 中國
Japan and South Korea 日韓
Europe and America 歐美
I am not sure 我不清楚
No particular preference 沒有特別偏好
3-1. How much do you spend on gaming on
低於 US$10（約台幣 305 或人民幣 72)
average each month? (Select “Other”, please
specify the amount)您平均每月在遊戲中花
費多少金額？（選擇其他，請說明金
額）
低於 US$50 (約台幣 1526 或人民幣 360)
低於 US$100 (約台幣 3053 或人民幣 719)
低於 US$200(約台幣 6106 或人民幣 1438)
低於 US$500(約台幣 15,264 或人民幣
3-2. What types of goods or services do you
mainly buy in games? 您主要在遊戲中購
買哪些類型的商品或服務？
3595)
Other:
In-game currency 遊戲內貨幣
Character or skin 角色或皮膚
Props 道具
Value-added services (such as membership
or season tickets) 增值服務（如會員或季
票）
In-game advertising removal 遊戲內廣告去
除
Other:
3-3. What are the main factors that influence Game experience improvement 遊戲體驗提
your game consumption decisions? 影響您 升
遊戲消費決策的主要因素是什麼？
Social factors (such as friends or community
influence) 社交因素（如朋友或社群影
響）
Promotion or discount 促銷或折扣
Game requirements (such as playing specific
content) 遊戲需求（如遊玩特定內容）
Other:
If possible, what suggestions would you like to give to the mobile games you are
currently playing to improve them? 如果可以，你想給正在遊玩的手機遊戲甚麼改善
建議？
Mobile game industry analysis
Mobile game industry structural adjustment trend（398）
Trend
The mobile gaming industry consists of three important components: developers, publishers
and platforms. The Chinese gaming market is dominated by Tencent, NetEase, Perfect World,
Shanda and several other giants, which are all expanding their mobile teams and releasing
new mobile games (Fung 2016). Although smaller game producers try to struggle, they are
largely restricted by large companies and have little chance of moving up the industry chain,
which inhibits further transformation and competition of mobile game industry forces (Zhu,
Hu, and Hassink 2021). However, these domestic game industry giants in China cannot
guarantee that their games will remain popular. Furthermore, there are multiple distribution
channels in the Chinese mobile game market, so small domestic game studios in China tend to
hand over new games to publishers that can use various marketing channels to achieve
profitability (Fung 2016).
In the intensely competitive market of the mobile game industry, large companies often tend
to make acquisitions within the industry to take advantage of economies of scale or across
industries to gain economies of scope (Caviggioli et al. 2017). When a small business is
acquired, it may gain more user attention, financial support and exposure to more mature
game development technology, which helps the game development team save some costs and
time.
Diversification
Many large game platform companies convert game content into commercial products by
acquiring or developing IP in their own way (Ding and Chen 2023). Some game developers
use the method of exclusive IP creation, utilizing the company’s IP strategy development
department to identify good literary and comic IPs and generate exclusive game IPs (Ding and
Chen 2023). Many large game developers will set up game competitions based on their own
products and player base. Game developers provide prize money for competitions, and some
computer manufacturers sponsor competitions and provide equipment support for publicity
purposes (Parshakov, Naidenova, and Barajas 2020). This not only brings more attention to
mobile games, but also helps companies create more profits.
Forward integration trend and its causes
Companies like Tencent and NetEase play the role of distributors from the perspective of
foreign game developers, while also developing their own games (Coe and Yang 2022).
NetEase’s game department will also design game peripherals and rent venues to carry out
activities to contact consumers and collect their opinions to improve product design and
product quality. These marketing methods are all aimed at establishing a good reputation in
the minds of consumers.
Inter-firm arrangements within an industry（287）
Industry cooperation
There are also many collaborations between game developers in the mobile game industry.
Although the market competition in the mobile gaming industry is very fierce and most of the
market share is in the hands of large gaming companies, this may inhibit the creation of new
products and make it difficult to generate profits. But big game companies also have their
own strategies. These companies are increasingly using co-branding as a means to refresh
their brand image, enter new markets, adopt new technologies, expand brand influence and
cut costs through economies of scale (Suryani, Hurriyati, and Hendrayati 2023). Co-branding
not only allows partners to increase brand awareness, but also creates favorable conditions for
both partners to attract more players, causing players to spend more time on the game and
thereby gain more game revenue (Soeiro, Santos, and Alves 2016).
Relationship with government
The government is positive about the global expansion of mobile games because the revenue
generated by the international game market helps improve China’s soft power (Fung 2016).
Since these large companies can promote employment, increase GDP output, and enhance
urban influence, these large companies have the privilege of obtaining game licenses faster
because they have more resources to establish close relationships with the government (Zhu,
Hu, and Hassink 2021).The government will provide support for some relatively large game
companies, such as by providing cheap land for corporate use, financial assistance and tax
credits, stimulating the development of the gaming industry (Zhu, Hu, and Hassink 2021). To
obtain government support, key game companies need to meet certain export revenue
standards, possess original game content or core technology, the content of the game should
be positive and healthy, and have the potential to develop in the international market (Fung
2016).
Mobile game alternative industries and other characteristics
Alternative industries – VR as a potential alternative industry （292）
Advantage
As the market share of mobile games continues to grow, mobile games have gradually
expanded into many market areas for exploration and research. In particular, location-aware
and mixed reality mobile games have evolved, creating new possibilities for gaming between
online and offline spaces (Hjorth 2011). The emergence of VR technology has given the game
industry a new development direction. VR is defined as a communication medium that
demands physical immersion, delivers synthetic sensory stimulation, allows users to mentally
immerse themselves, and is interactive (Menin, Torchelsen, and Nedel 2018). Combining VR
with game aspects has the potential to enhance the user gaming experience in virtual reality
by boosting realism, engagement, and motivation (Menin, Torchelsen, and Nedel 2018).
Second, with the help of VR real-world technology, by increasing the physical combination
experience of games, the functional game business can expand into new fields such as the
sports competition industry (Liu 2023).
Disadvantages
VR technology barriers are high, and its equipment costs are high. VR technology was highly
inaccessible to many consumers in the early days of its existence, which limited the
popularity of products with VR technology in the market (Weiner and Sanchez 2020). Second,
different versions of VR technology produce varying levels of realism in the VR world.
Previously, VR technology had a poor visual display refresh rate (Weiner and Sanchez 2020).
For example, when simulating movement or other environmental changes, the visual effects
of a low refresh rate can be uncomfortable. At present, VR game content is relatively limited,
and the development cycle of using VR technology to develop games is long and difficult.
Without sufficient capital, it is difficult for a small business to make a profit from the products
it makes, which may result in the small business making ends meet.
Other features – Characteristics of the VR market, R&D and innovation(316)
Market
Figure: Virtual reality (VR) headset unit sales worldwide from 2019 to 2024. (in million
units)
Source: Statista
As can be seen from the figure, VR sales in 2020 are close to 5 million, and sales are expected
to grow further in the future. There are two distribution channels for VR equipment, which are
divided into online retailers and physical service providers (Hsiao, Wang, and Lin 2024).
Recent technological breakthroughs in the field of virtual reality (VR) have resulted in a
widespread application of VR solutions in the entertainment, business, education,
rehabilitation, and healthcare sectors, as well as research (Geršak, Lu, and Guna 2020). VR
technology has also been applied to the field of education. VR technology makes the
educational system more enjoyable than traditional education, and students can learn new
things faster by engaging with one another in a 3D environment (Voštinár et al. 2021). VR
technology can also be applied to the real estate field. The main way for buyers to find a
house is to search on the website. However, since pictures cannot intuitively reflect the actual
situation, buyers have to look at the actual condition of the house many times. VR technology
is used to provide more extensive real estate information than text or video, it can help reduce
the information gap between buyers and sellers (Hsiao, Wang, and Lin 2024). Although VR
technology has a wide range of applications, it has not been widely popularized due to the
high cost of current equipment.
R&D and innovation
Innovation in VR technology continues. The first is to improve the clarity of VR equipment to
give users a better equipment experience. The current frame rate of high-quality VR systems
is 90Hz, which generates data rates much higher than existing wireless communication
products, and future research and development goals are to create low-latency systems with
4K or 8K resolution (Liu et al. 2018). Another aspect is that in a 3D environment, users only
need gestures or gaze to use VR applications (Kharoub, Lataifeh, and Ahmed 2019).
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