Xsolla, a video game commerce company, has released its Q2 2025 Edition of The Xsolla Report: The State of Play. The report provides insights, trends and opportunities shaping the gaming landscape.

In 2024, global mobile app usage soared to 4.2 trillion hours, an all-time high that powered $150 billion consumer spending across mobile platforms. Mobile gaming is leading this charge, which accounted for more than half of that total. Despite a 6 per cent dip in overall game downloads, falling to 49.6 billion, in-app purchase (IAP) revenue surged, indicating deeper user engagement and a more valuable player base. And the momentum is far from over: mobile gaming revenue is projected to grow at a steady 5.57 per cent CAGR, climbing to $126.06 billion (€106.9bn) in 2025 and hitting a staggering $156.58 billion by 2029.

Digging deeper into genre performance reveals how uneven the mobile gaming landscape is. Role-playing games (RPGs) dominated in revenue, raking in $2 billion from in-app purchases with a solid 7.2 per cent success rate. Strategy games came next, generating $352 million and a 3.8 per cent success rate. But simulation games took the crown in reach, amassing over 1 billion downloads and boasting the highest success rate at 10.2 per cent, a sign of strong user engagement and retention.

The path to success remains steep: only 1.9 per cent of new titles broke the $1 million revenue mark, while a significant 62 per cent earned nothing, underscoring the highly competitive, saturated market for newcomers.

As developers seek alternative growth models, direct-to-consumer (D2C) strategies are gaining traction. A recent EU-based developer survey found that 23 per cent of the respondents have adopted D2C models, and 12 per cent are actively building them. However, 62 per cent have yet to implement such strategies.

“The shift in mobile is clear – players are spending more, but on fewer, better-supported games,” commented Chris Hewish, President, Communication & Strategy at Xsolla. “For developers, combining hybrid monetization and distribution strategies is essential to long-term sustainability.”

Some 72 per cent of developers now embrace hybrid monetization models, which combine IAPs, subscriptions, and advertising to maximise revenue and reach broader audiences. As monetisation evolves, these models, alongside LiveOps and strategic IP collaborations, shape the blueprint for mobile success in 2025 and beyond.

Other posts by :

1. Could Amazon buy into AST SpaceMobile?
2. Orbex in trouble?
3. Musk planning investment in South Africa
4. France backs OneWeb
5. Bank: SES target price of €9.60
6. Bank give $55 target to AST SpaceMobile
7. Musk updates on Ship 26 explosion
8. Market reacts to fresh Eutelsat capital
9. France, Germany resists ESA plan for high-res satellites

Categories: Articles, Games, Markets, Mobile, Research

Tags: games, mobile, xsolla