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Mobile Gaming: A $126 Billion Marketplace
Bruce Hamilton
June 30, 2025
The most powerful platform in entertainment might already be in your pocket. In 2025, mobile gaming is a $126 billion business; bigger than console, bigger than PC, and growing fast in markets from Turkey to Thailand. This week, we break down how the industry is evolving beyond downloads, why fewer games are making more money, and how mobile gaming became the cultural engine nobody saw coming.
This week in pop culture & business
Anna Wintour is stepping down as Editor-in-Chief of Vogue after nearly 40 years
Anna Wintour is stepping down as Editor-in-Chief of Vogue after more than three decades at the helm, marking the end of a transformative era in fashion media. Known for her sharp editorial vision and iconic bob-and-sunglasses look, Wintour redefined Vogue into a global cultural force. She will remain with Condé Nast in a senior advisory role, while a successor has yet to be named. Her departure signals a major shift in the fashion publishing world and sets the stage for a new chapter at Vogue.
Instagram and TikTok are plotting TV apps
TikTok and Instagram are gearing up to bring their short-form video content to TVs, aiming to emulate YouTube’s runaway success in living-room viewing. Meta is preparing an Instagram app tailored for TV, likely focused on Reels, while TikTok has been developing its own optimized TV version for the past six months, emphasizing higher-quality, longer-form content suited for bigger screens . This reflects a broader shift as social platforms evolve into full-scale multimedia ecosystems and chase lucrative TV advertising dollars. As YouTube emerged as the most-watched service on connected TVs, rival platforms are betting that bringing their mobile-first experience to the big screen will help retain users and monetize more deeply
Unilever has acquired men’s grooming brand Dr. Squatch for $1.5 billion
Unilever is acquiring men’s grooming brand Dr. Squatch for approximately $1.5 billion, marking a major move into the booming male personal care market. The deal underscores Unilever’s strategy to expand beyond its traditional portfolio by investing in high-growth, digitally native brands. With Dr. Squatch’s strong online presence and loyal customer base, this acquisition reinforces the trend of legacy consumer goods companies doubling down on direct-to-consumer startups.
California passed a budget bill that increases the state’s film and TV tax credit program
California legislators have approved a $750 million tax credit to boost Hollywood film and TV production over the next five years. The measure aims to keep major productions in-state as competition from other regions intensifies. The expanded credit also includes incentives for building new soundstages and adopting diversity hiring practices. Industry leaders view it as a critical step in maintaining California’s dominance in entertainment production while supporting jobs and infrastructure growth.
Mobile Gaming: A $126 Billion Marketplace
What was once dismissed as “casual gaming” is now the engine of the global games industry. In 2025, mobile gaming is not just big; it’s dominant, profitable, and redefining how players, developers, and advertisers interact with entertainment.
Last year, the global mobile gaming market hit $126.1 billion in revenue, making it the largest segment in the entire gaming industry. That’s nearly half of the $188.9 billion projected total global games market more than console and PC combined.
And yet, for all its scale, mobile gaming is still misunderstood. Here’s what the numbers are actually telling us in 2025.
More Revenue, Fewer Downloads But Deeper Engagement
The most striking shift in 2025 is this: downloads are down, but money is up.
While mobile game downloads dropped by 7 percent year-over-year, from 49 billion in 2023 to 43 billion in 2024, player spending continued to rise. In-app purchase revenue alone hit $82 billion, up 4 percent globally. Average revenue per user (ARPU) in the U.S. climbed to $6.43 per download, an 11 percent increase.
Time spent gaming rose nearly 8 percent, with play sessions up 12 percent. The takeaway: users are playing fewer games, but they’re more invested in the ones they do play. And that’s changing how developers build, market, and monetize.
Global Reach
While North America and Europe posted steady growth, reaching $50.6 billion and $33.6 billion respectively, emerging markets are now driving the pace. Turkey saw a 28 percent spike in mobile gaming growth. Mexico jumped 21 percent. India and Thailand followed with 17 and 16 percent, respectively.
Asia-Pacific remains the industry’s core, accounting for the largest share of mobile gaming revenue. China alone now brings in over $40 billion annually, or roughly 31 percent of global revenue. Tencent’s Honor of Kings continues to dominate with over $2.6 billion in revenue in 2024 alone.
Breakout Hits and Record-Breaking Launches
2025 is also shaping up to be a banner year for hit games. Monopoly Go!, a mobile adaptation of the classic board game, has already surpassed $5 billion in lifetime revenue. One of the fastest-grossing mobile game launches in history.
Meanwhile, Last War: Survival Game, a post-apocalyptic strategy title, has passed $2 billion in revenue, becoming a surprise global success in under two years.
But the true story is in the shift: it’s not just about downloads. Today, it’s about lifetime value, recurring engagement, and live ops that keep players coming back day after day.
Monetization Gets Smarter and More Varied
The mobile gaming business model is evolving from simple pay-to-play mechanics into sophisticated revenue stacks. Hybrid monetization is now standard, combining in-app purchases, ads, subscriptions, and even battle passes.
Developers are leaning into data. AI-powered personalization and dynamic pricing are quietly becoming the norm, adjusting offers and rewards in real time based on player behavior. And with mobile gaming ad spend projected to reach $131 million in 2025, brands are more present in the gaming experience than ever.
Beyond Games: A Cultural and Commercial Platform
Mobile games aren’t just making money, they’re shaping culture. They’re where millions of people go to decompress, compete, collaborate, and connect.
Games like Roblox, Genshin Impact, and PUBG Mobile are more than apps. They’re virtual platforms with their own music events, fashion drops, and fandoms. In many markets, they’re the primary entry point into online culture and the most powerful user acquisition channels in entertainment.
Looking Ahead
The data is clear: mobile gaming in 2025 is bigger, smarter, and more deeply embedded in the fabric of digital life than ever before. It’s no longer about chasing viral downloads. It’s about building lasting ecosystems that generate value through time, attention, and emotional investment.
For brands, developers, and investors, the opportunity is not just to make games but to build experiences that live in the palm of someone’s hand, for hours at a time, every single day.
In a noisy, always-on world, mobile gaming has quietly become the most valuable real estate in entertainment.
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