Xsolla quarter report highlights impact of Digital Markets Act on mobile games



Xsolla, a global video game commerce company, published the quarterly report, The State of Play Spring 2024 edition today, highlighting the impact of Europe’s Digital Markets Act in mobile gaming.

The report provides insights into the emerging trends and pivotal shifts impacting the gaming industry in the short and long term. The company said the aim is to significantly shape the future of mobile gaming, deepen academic connections within the gaming ecosystem, and redefine investment patterns.

David Stelzer, president of Xsolla, and Ron Scott, vice president, will discuss these topics at our GamesBeat Summit 2024 event on May 20-21 in Los Angeles. (You can get a 25% discount with this code: gbs24dean25). Xsolla is sponsoring our 8th Women in Gaming Breakfast.

In an era where mobile gaming commanded a 49% share of the global market in 2023, the report navigates through the advances in global compliance and regulation, including the Digital Markets Act in Europe. It also highlights new player engagement strategies, offering a glimpse into the potential future of mobile gaming monetization and distribution.

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Mobile gaming stands at the forefront of change in the industry with a massive user base; nearly 1.6 billion gamers worldwide play on mobile devices. And with its $89 billion revenue in 2023 expected to hit $118 billion by 2027, the segment is on a trajectory for continued dominance, the report said.

The DMA went into effect in the European Union in March. There’s still litigation around how to implement it. But Xsolla said the gaming industry is witnessing a shift. Regulatory bodies worldwide, including South Korea and India, are pushing for more relaxed rules around “out-of-app commerce” for games. Lawsuits against Apple and Google fuel the trend, as do the pressures of DMA enforcement.

The report said a key question of compliance versus control remains: will platforms adapt and relinquish more control, or will they devise new restrictions to maintain their grip on developers? For now, with the removal of platform roadblocks, developers have more opportunities to forge a platform-independent path for in-store and out-of-store game distribution.

The report discusses the impact of cross-platform play and the importance of innovative monetization models, providing actionable insights for developers and industry stakeholders. Based on discussions at the Game Developers Conference, the AI and Web3 are still growing but highly relevant, Xsolla said.

The State of Play emphasizes the importance of academia in the growth and diversification of the gaming industry. It explores how educational programs and initiatives develop talent and promote diversity and inclusivity within the gaming community.

This edition underlines the symbiotic relationship between the gaming industry and academic institutions, highlighting programs that significantly impact students and the industry.

Berkley Egenes, chief marketing and growth officer at Xsolla, in a statement, “As we introduce the latest edition of ‘The State of Play,’ we’re not merely sharing industry insights but advocating for a transformative vision: Equal Access for Everyone. This initiative goes beyond our commitment to innovation and growth within the gaming industry.”

He added, “It’s about breaking down barriers to ensure that every developer, regardless of company size, has the opportunity to showcase their creativity and reach a global audience. Our focus is on providing platforms and tools that foster creative opportunities, international exposure, and the development of unique projects, ensuring that the future of gaming is accessible to all. We aim to empower every player and developer worldwide, ensuring the gaming landscape is as diverse and dynamic as its community.”

The report also analyzes the gaming industry’s current investment climate, including funding trends, mergers, and acquisitions. It outlines the shifts in investment patterns, from the heights of the pandemic-induced boom to a more measured approach in 2024. The State of Play provides a roadmap for navigating the industry’s financial aspects, offering insights into strategic investment opportunities and forecasting future trends, Xsolla said.

Expert commentary is included from Mukul Aurora, cofounder of Appsoleut Games; Mariusz Gasiewski, CEO of mobile gaming and apps lead at Google; and Karla Reyes, founder and studio director, Anima Interactive.



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