The global mobile games market slowed significantly in 2025, with revenue growth reaching just 0.2% year over year, according to AppMagic’s Mobile Landscape report. That figure marks a sharp drop from the 3% growth recorded in 2024 and reflects broader pressure across downloads, monetisation, and user acquisition.
Download growth also softened, rising 4.6% compared with prior years, as competition increased and storefronts became more saturated. While games still dominate mobile publishing activity, the data suggests the industry is entering a more mature phase where expansion is harder to sustain and performance varies widely by genre and region.
Strategy Games Find Momentum in a Slowing Market
While overall growth stalled, strategy games stood out as the fastest-growing major genre in 2025. AppMagic reports strategy revenue increased by 16% year over year, alongside a 15% increase in downloads.
That performance comes at a time when many other genres are seeing flatter engagement curves. Strategy titles tend to benefit from longer play cycles, deeper progression systems, and stronger long-term monetisation, which has helped them weather slower market conditions better than casual or hypercasual formats.
Developers also continued to prioritize gaming releases. Games increased their share of total new launches from 63% in 2024 to 72% in 2025, signaling that publishers are still investing heavily in the category even as growth becomes harder to capture.
Regional Saturation Starts to Show
AppMagic’s report also highlights emerging signs of regional saturation, particularly in Latin America. After several years of strong expansion, downloads have now stalled or declined across markets such as Colombia, Ecuador, Peru, and Argentina.
Globally, the volume of releases surged 25% year over year, surpassing 1.4 million apps and games in 2025. Despite that influx, only around 10% of new titles gained meaningful user attention. The result is an increasingly competitive discovery environment where visibility, marketing efficiency, and brand recognition matter more than sheer output.
As more titles fight for the same users, acquisition costs rise and long-term retention becomes a defining factor in whether a game can scale.
Monetisation Shifts Beyond App Stores
One of the more notable changes in 2025 was the continued growth of direct-to-consumer monetisation. AppMagic notes that top-grossing titles are driving revenue expansion by shifting part of their business beyond traditional app store payments.
These approaches include web-based storefronts, account-linked purchases, and external checkout systems that allow publishers to retain more margin and maintain direct relationships with players. While some of these models intersect with broader web3 infrastructure ideas, most adoption remains focused on improving efficiency and reducing platform dependency rather than decentralisation itself.
The trend reflects a market adapting to slower growth by optimizing how revenue is captured instead of relying solely on increased downloads.
AI Advertising Becomes Industry Standard
AI has moved from experimentation into daily operations for mobile game marketing. In 2025, 56% of the top 100 grossing games used AI-generated or AI-assisted ad creatives.
Publishers are increasingly relying on automation to generate assets, personalize messaging, and test creative variations at scale. With more competition for attention across app stores and social platforms, AI tools are helping teams respond faster to performance data and reduce production overhead.
Rather than redefining marketing strategies outright, AI is now functioning as a baseline layer of efficiency across user acquisition pipelines.
Apps Begin to Challenge Games in Revenue
Another shift highlighted in the report is the growing strength of non-gaming apps. In September 2025, apps surpassed games in in-app purchase revenue for the first time, generating $4.8 billion compared with $4.5 billion for games.
This change was driven by strong performance from platforms such as ChatGPT, TikTok, and HBO Max. Across the full year, non-gaming app downloads rose 11.9% year over year, while revenue climbed 19.1%, led largely by generative AI services.
While games still dominate launch volume and player engagement, monetisation leadership is no longer exclusive to gaming, adding further pressure to mobile publishers competing for consumer spending.
A More Competitive, Less Expansive Mobile Games Landscape
AppMagic’s data points to a mobile games market that is stabilizing rather than expanding rapidly. Revenue growth is narrow, regional saturation is emerging, and only a small share of releases achieve meaningful scale.
At the same time, success is becoming more dependent on operational advantages such as strategy-driven retention, AI-powered marketing, and alternative monetisation channels. Instead of relying on broad market growth, publishers are increasingly focused on efficiency, player lifetime value, and direct relationships.
As the industry moves into 2026, mobile games are facing a landscape defined less by explosive expansion and more by competitive execution.
Source: PocketGamer
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Frequently Asked Questions (FAQs)
What was mobile games revenue growth in 2025?
According to AppMagic, mobile games revenue grew only 0.2% year over year in 2025, down from 3% growth in 2024.
Which game genre grew the fastest in 2025?
Strategy games were the fastest-growing major genre, with revenue up 16% and downloads increasing by 15%.
How is AI being used in mobile game marketing?
In 2025, 56% of the top 100 grossing games used AI-driven ad creatives to automate asset creation, personalize messaging, and optimize campaign performance.
What is direct-to-consumer monetisation in games?
Direct-to-consumer monetisation allows players to purchase content outside traditional app stores using web-based stores or account systems, helping publishers keep more revenue and build direct relationships.
Are non-gaming apps competing with games for revenue?
Yes. In September 2025, apps overtook games in in-app purchase revenue, driven by strong growth from platforms like ChatGPT, TikTok, and HBO Max.
Is the mobile games market saturated?
AppMagic’s report suggests growing saturation, with over 1.4 million releases in 2025 but only about 10% gaining meaningful user attention, alongside slowing downloads in several regions.
