Mumbai: “Survive until 25” may be the unofficial slogan of the gaming industry this year, but positivity and optimism remain among the 454 senior mobile game developers interviewed for the study. This is despite a 2.1% year-on-year decline in revenue in 2023, a slowdown in funding, pause in new game development by major mobile publishers, and layoffs totaling more than 10,000 people across the gaming industry in 2024. 51% of respondents say the current wave of layoffs is mostly over, while 83% of respondents have managed to raise capital to develop, launch or market a mobile game.
Sandsoft, a developer, publisher and investor in mobile-focused games, today released a study on how mobile game developers feel about their industry and, in particular, about mobile game publishing. The Publisher Perception Report shows that the industry is ready to move beyond the doom and gloom of recent years, with 81% of mobile game developers working on new titles.
Access to capital is a key theme in the study conducted among U.S., Spanish and French game developers, and a key part of the value proposition of mobile game publishers. Among developers who have raised capital, publishers are the second most common source of funding after strategic investors, while access to capital is seen as one of the three most valuable services provided by publishers. With self-publishing seen by many game developers as a key measure of success, publishers must strive to add as much value as possible. 34% of respondents believe publishers provide a valuable service, and another 39% say publishers are a necessary part of mobile gaming.
David Fernández Remesal, CEO of Sandsoft, said, “In a market where launching new games is extremely difficult, publishers need to be a driving force if they want to deliver value to game developers. We wanted to better understand the needs, hopes and concerns of mobile game developers across the industry, so we asked them directly. We’re sharing the results because we want to see success for the entire mobile game industry. That means we want to help developers and other publishers better understand how they can work together in the future.
“If there’s one thing you take away from our Publisher Perception Report, it’s that despite obvious challenges, positivity and optimism remain among developers. In the quest to create fun and engaging experiences, nothing can be more important than that.”
While game developers surveyed are optimistic about their future prospects, they are well aware of the challenges ahead. Of developers working on new titles, only 9% have progressed to the soft launch stage. Almost half (49%) expect further massive layoffs, 44% attribute the layoffs primarily to overstaffing and mismanagement, while 67% are concerned about their own job security. As for the publishing landscape, 27% of respondents believe publishers take more than they give due to concerns about unfavorable contract terms and revenue shares or loss of creative control.
Key findings from the Publisher Perception Report:
New games now: 81% of experienced mobile game developers are working on at least one new title. 83% have raised capital to develop or market a mobile game.
Effort and profit for the publisher: 34% of mobile game developers say that publishers provide a valuable service. On the other hand, 27% of mobile game developers feel that publishers take more than they give. Developers who have previously worked with a publisher rate the collaboration on average 7.7/10.
Choosing a publisher: The terms offered are the single most important factor in publishing deals at 39%. 87% of mobile game developers say it is important that their publishing partner has a diverse team.
New hubs for mobile gaming: Latin America is considered the most attractive emerging market for game publishing, while Southeast Asia is considered the region that produces the best domestic content. 93% of developers say it is important to localize and culturally tailor game content.
Hyperhybrid: Hybrid casual is currently considered the most suitable game type on the market (43%), followed by casual (34%). Only 15% consider it hypercasual.
Market challenges: Access to talent is most frequently cited as the industry’s biggest challenge, despite massive layoffs. However, there is little consensus on this, as issues such as saturation and discoverability, rising UA costs and difficulties in raising capital are also cited.
redundancies: When it comes to job losses, experienced developers are divided on whether they are largely over (51%) or will continue (49%). The majority are concerned about their jobs and see the formation of a union as a positive.
New technologies: 90% of mobile game developers say it is important that AAA-quality games must be available on mobile devices in the future, 84% use AI in their development processes and 34% use blockchain technology.
