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Chris Petrovic on the Future of Games Investment and Mobile Growth

Among the highlights of the inaugural Madeira Games Summit last month was a candid discussion about the state of investing and the games market from industry veteran Chris Petrovic.

The Funplus executive discussed the reasons behind the games market’s slowing growth, and potential future developments as platform boundaries blur and AI tools accelerate game growth. Following his talk, we delved deeper into what these changes mean for mobile game developers and Funplus specifically.Here are edited highlights:

the Plateau in Mobile Growth

Petrovic addressed a key concern within the industry: the slowing growth of the mobile games market. For years,mobile gaming experienced explosive expansion,but that pace is now moderating. He attributes this to several factors, including market saturation, increased user acquisition costs, and evolving player preferences. “The low-hanging fruit has been picked,” petrovic explained. “Getting new users is considerably more expensive, and retaining them is harder than ever.”

Why is Mobile Growth Slowing?

• Market Saturation: The mobile market is crowded with games, making it difficult for new titles to stand out.
• Rising User Acquisition Costs (UA): Advertising costs on platforms like Facebook and Google are increasing, squeezing margins.Statista reports a consistent rise in UA costs over the past several years.
• Decreasing Player Loyalty: Players are less likely to stick with a single game for extended periods, demanding constant updates and fresh content.
• Privacy Changes: Apple’s App Tracking Transparency (ATT) framework has made it harder to track user data, impacting the effectiveness of targeted advertising. Apple’s ATT documentation details these changes.

The Convergence of Platforms

Petrovic predicts a future where the lines between platforms – mobile, PC, and console – become increasingly blurred. This is driven by technologies like cloud gaming and cross-platform game engines (like Unity and Unreal Engine). “We’re moving towards a world where players can access their games on any device, anywhere,” he stated. “This creates both opportunities and challenges for developers.”

implications of Platform Convergence

• Wider Audience Reach: Games can reach a larger audience by being available on multiple platforms.
• Increased Development Complexity: Developing and maintaining games for multiple platforms requires more resources and expertise.
• New Monetization Models: Subscription services and cross-platform in-app purchases may become more prevalent.

The Impact of Artificial Intelligence (AI)

AI is poised to revolutionize game development, according to Petrovic. He believes AI tools will automate many repetitive tasks, allowing developers to focus on creativity and innovation. “AI won’t replace game developers, but it will augment their abilities,” he said. “We’ll see AI used for everything from level design and character animation to game testing and marketing.”

AI Applications in Game Development

• Procedural Content Generation: AI can automatically create game levels,environments,and assets.
• AI-Powered NPCs: Non-player characters can exhibit more realistic and engaging behavior.
• Automated Game Testing: AI can identify bugs and glitches more efficiently.
• Personalized Marketing: AI can tailor marketing messages to individual players.

What This Means for Funplus

Funplus, known for its successful mobile titles like State of Survival,