From Survive to Thrive: The Mobile Games Industry’s Big Shift in 2025
Introduction: The Mobile Games Industry’s Turning Point
2024 was a rough ride for mobile gaming. Layoffs, rising costs, and a whole lot of uncertainty made it a year many developers would rather forget. While the industry technically returned to growth, the reality on the ground was tough—56.7% of industry professionals said layoffs were the biggest trend of the year.
User acquisition (UA) costs kept climbing, investment dried up, and 40% of surveyed companies didn’t release a single game. It felt like everyone was just trying to survive—hence the phrase that stuck: "Survive to ‘25." The goal? Make it out alive with as few scars as possible.
But here’s the thing: the industry isn’t dead. Not even close.
Big money is moving again. Companies like Miniclip (acquiring Easybrain) and Playtika (buying SuperPlay) show that investment isn’t completely gone—it’s just more selective. The mobile market itself is growing again, and while challenges remain, there’s a shift in mindset.
Now, the new phrase making the rounds? "Thrive in 2025."
It’s not just wishful thinking. New monetization models, alternative app stores, and direct-to-consumer strategies are creating fresh opportunities. Developers are getting smarter about how they release and market games. And while it’s still early, there’s a sense that better times could be ahead.
The big question: Will mobile gaming finally break out of survival mode and start thriving again?
Let’s dive into the numbers and trends shaping 2025.
Shoutout to PocketGamer.biz for this fantastic Mobile Games Industry Trends Survey. This report was put together by Craig Chapple, Head of Content at PocketGamer.biz, and you can read the full report on PocketGamer.biz.
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2024 in Review: A Tough Year for Many
Let’s be real—2024 was brutal for a lot of people in mobile gaming. While the industry technically grew, for many studios and developers, it felt like the walls were closing in. Layoffs, studio closures, and rising costs made it one of the most challenging years in recent memory.
Layoffs and Studio Closures: The Industry Shrinks
The numbers don’t lie—56.7% of industry professionals said layoffs were the biggest trend of the year. That’s more than half of the entire industry pointing to job cuts as the defining feature of 2024.
Big names, indie studios, service providers—it didn’t matter. Investment slowed down, mergers happened, and many companies simply couldn’t sustain their teams. Some downsized, others shut down completely.
It wasn’t just about cutting costs—it was about survival.
Rising UA Costs: Reaching Players Became Expensive
If layoffs were the biggest trend, rising user acquisition (UA) costs weren’t far behind. This has been building for a while—privacy changes, ad tracking restrictions, and fewer easy ways to reach new players have made it way more expensive to market games.
More studios found themselves spending more and getting less in return. If you wanted to attract new players in 2024, you needed deep pockets or a damn good strategy.
This is one of the biggest reasons smaller teams struggled—without a massive UA budget, getting noticed became nearly impossible.
Fewer New Game Releases: Playing It Safe
Want proof of how cautious the industry was in 2024? 40% of surveyed studios didn’t release a single new game.
Compare that to past years, and you see the shift:
When you combine high development costs, fewer investment opportunities, and expensive marketing, it’s no surprise that many companies held back on new releases.
Shift to Live Ops: Betting on What Works
While many companies played it safe, some games had their best year ever. Titles like Brawl Stars, EA Sports FC, and eFootball (games that weren’t even new) pulled in massive numbers in 2024.
The takeaway? Live-service games with strong player bases are thriving. Instead of launching new games, many developers focused on keeping existing titles fresh with updates, events, and new content.
This is a trend that isn’t going away anytime soon. For many companies, why risk launching something new when you can double down on what’s already working?
What’s Next?
With all the layoffs, rising costs, and fewer new releases, you might think 2025 is set to be another tough year. But there are signs of life—investment is slowly coming back, and some big shifts in the industry could make 2025 a year of opportunity.
The Green Shoots of 2025: Hope on the Horizon
After a year of layoffs, high costs, and fewer new releases, is there finally light at the end of the tunnel? The answer seems to be yes—at least, there are signs of hope.
While 2024 was all about survival, 2025 is bringing a new mindset to the industry:
"Survive to ‘25" is Out—"Thrive in 2025" is In
The tone of the conversation is shifting. Instead of just trying to stay afloat, more companies are thinking about long-term sustainability and growth again.
Does this mean everything is fixed? Not yet. But there’s momentum, and that’s a big deal.
M&A Activity is Picking Up: Big Money is Moving Again
One of the clearest signs that confidence is returning? Major acquisitions are happening again.
This matters because companies don’t make these moves unless they see real potential for growth. For most of 2024, M&A was slow—now, we’re seeing the first signs of renewed investment interest.
It’s not a full-blown comeback yet, but it’s a signal that some players in the market are ready to bet on the future.
The Mobile Market is Growing Again
Here’s the thing—despite all the layoffs and struggles, mobile gaming is still a massive industry, and it’s not shrinking.
It’s not the wild growth phase of 2020-2021, but it’s clear that mobile gaming is far from done.
Developers Are Exploring Alternative Monetization Strategies
One of the biggest shifts happening right now? Developers are rethinking how they make money.
With high platform fees (30%) and rising UA costs, more studios are looking beyond the traditional app store model:
Web Shops & Direct-to-Consumer Sales – Avoiding app store fees by selling directly to players.
Alternative App Stores – Taking advantage of regulatory changes that challenge Apple & Google’s dominance.
Hybrid Monetization Models – A mix of ads, in-app purchases, and subscriptions to maximize revenue.
Developers are getting smarter about how they operate, and that’s a good thing for the long-term health of the industry.
What’s Next?
2025 is shaping up to be a year of transformation. The challenges aren’t gone, but there are real opportunities emerging for those who adapt.
Next up, let’s break down the key trends shaping mobile gaming in 2025—from alternative app stores to the rise of web gaming.
Key Trends Shaping Mobile Gaming in 2025
The mobile gaming industry is shifting. The old playbook—relying on traditional app stores, hyper-casual hits, and standard monetization models—is being rewritten. Developers are adapting to new market realities, and five key trends are leading the way.
A. Alternative App Stores & Payment Systems: The Walls Are Cracking
For years, developers had no choice but to play by Apple and Google’s rules, giving up 30% of their revenue in platform fees. But 2025 is bringing real change.
While Apple and Google still dominate, the cracks in the walled garden are getting bigger, and developers are taking advantage.
B. Hybrid-Casual is Replacing Hyper-Casual
Remember when hyper-casual games dominated the charts? That era is fading fast.
What’s taking its place? Hybrid-casual games (30.7%)—a mix of:
- Simple gameplay (like hyper-casual) but with long-term progression.
- Stronger monetization via ads + in-app purchases.
This shift means developers are focusing on retention, not just downloads—a big change from the hyper-casual boom.
C. The Rise of Web Gaming & HTML5: The Browser is Back
Web gaming is making a surprising comeback, and industry veterans are paying attention.
Why?
For developers frustrated by app store restrictions, rising UA costs, and platform lock-ins, the open web is becoming an attractive alternative.
D. The Role of Generative AI in Game Development
AI is one of the hottest topics in gaming right now. It’s already being used for art generation, procedural level design, and even narrative writing.
But will it actually reduce costs for developers? Maybe.
For now, AI isn’t taking over game development, but it’s becoming an important tool. The question is: Who will use it best?
E. Expansion into Emerging Markets: MENA & Asia on the Rise
While Western markets have matured, the real growth is happening in emerging regions.
This isn’t just about new players—it’s about new business opportunities.
For developers looking to expand beyond the usual markets, these regions offer real opportunities.
What’s Next?
The trends shaping 2025 show that mobile gaming isn’t just surviving—it’s evolving. Developers who embrace alternative monetization, shift to hybrid-casual, and explore emerging platforms like web gaming will be ahead of the curve.
But challenges remain—rising costs, competition, and changing player habits. The studios that adapt will thrive.
Next up, let’s talk about what’s still holding the industry back—and how to overcome it.
Industry Challenges That Still Remain
While 2025 is shaping up to be a year of growth and opportunity, that doesn’t mean all the problems from 2024 have magically disappeared. Some of the biggest challenges that rocked the mobile gaming industry last year are still here—and they’re not going away anytime soon.
Here’s what’s keeping developers and publishers up at night.
1. UA & Marketing Costs Keep Climbing
One of the biggest concerns for developers right now? User acquisition (UA) costs.
The bottom line? It’s getting harder—and more expensive—to attract new players.
For big studios with deep pockets, this is a painful but manageable issue. But for smaller teams and indie developers, it’s becoming a serious barrier to growth. If you can’t afford the UA war, you’re stuck relying on organic reach, which is tough in a crowded market.
2. Investment is Still Hard to Come By
The M&A deals happening in 2025 (like Miniclip buying Easybrain) are a good sign, but they don’t mean investment is back for everyone.
For developers who thrived in the free-spending era of 2020-2021, this has been a harsh reality check. VC money isn’t flowing like it used to, and studios are being forced to prove their profitability before they can attract serious investment.
Some studios are adapting by:
- Focusing on live ops instead of launching new games.
- Exploring direct-to-consumer models to maximize revenue.
- Partnering with publishers instead of self-funding everything.
But for many teams, the question remains: How do you survive long enough to scale?
3. Privacy & Regulatory Shifts Add Uncertainty
The ongoing regulatory battles between developers and platform holders (Apple, Google, Epic Games) are starting to reshape the industry.
The problem? No one knows exactly how these changes will play out in the long run.
The industry is in a transition period, and developers are having to adjust in real-time—sometimes with little warning.
4. The Industry is Still Recovering from Layoffs
The layoffs that dominated 2024 aren’t just a thing of the past—they’ve left a lasting impact on the industry.
The big question is: Have we hit the bottom yet?
While some companies are done with layoffs, others may still need to make cuts if growth doesn’t pick up fast enough. And for those who lost their jobs, finding new opportunities in a tighter market is still tough.
So What’s Next?
Despite all these challenges, the mobile gaming industry isn’t shrinking—it’s evolving. Developers are adapting, investors are re-entering the space, and new monetization models and platforms are opening up.
The key to thriving in 2025? Understanding these challenges and finding ways to work around them.
Next, let’s talk about what really makes a game successful in today’s market.
What Makes a Game Successful in 2025?
With all the changes happening in mobile gaming—rising costs, new monetization strategies, and shifting player habits—what does it actually take to make a game successful in 2025?
Let’s cut through the noise and focus on what really matters.
1. Game Quality Still Reigns Supreme
No surprises here. If your game isn’t good, nothing else matters.
You can’t just launch and forget anymore. Successful games are continuously updated, refined, and expanded to keep players engaged.
2. Marketing & Monetization Make or Break a Game
Even the best game won’t succeed if no one knows about it—which is why marketing and monetization strategies are just as critical as quality.
With UA costs rising and competition fiercer than ever, getting players into the game is just as important as keeping them there.
The studios winning in 2025 are those that:
- Use smarter, more efficient UA strategies (organic reach, influencer marketing, web shops).
- Optimize monetization without pushing players away (balanced mix of ads, in-app purchases, and subscriptions).
- Leverage long-term engagement models (season passes, live ops, and social features).
3. The KPIs That Matter Most in 2025
Developers are tracking different success metrics than they did a few years ago. The focus has shifted from pure download numbers to long-term engagement and revenue stability.
Here are the top KPIs that matter most in 2025:
Top-Line Revenue (56%) : At the end of the day, money talks. Studios aren’t just chasing downloads—they want games that generate revenue over time.
Retention Rate (50.8%) : Getting a player isn’t the challenge—keeping them is. Retention is one of the strongest indicators of a game’s long-term success.
Daily Active Users (DAU) (47.8%) : A game isn’t just measured by how many people download it, but how many actually come back daily.
Lifetime Value (LTV) (47%) : How much is each player worth over time? The higher the LTV, the stronger the game’s long-term potential.
Developers in 2025 are shifting their focus from short-term wins to sustainable growth. The real success stories will be the games that keep players engaged—and spending—over time.
What’s the Takeaway?
The formula for success in mobile gaming hasn’t changed—but the execution has.
- A great game is still the foundation—you can’t build success on a weak product.
- Marketing and monetization strategies are just as important as gameplay.
- Retention and engagement matter more than ever—it’s no longer just about downloads.
The developers who understand these trends and adapt their strategies accordingly are the ones who will thrive in 2025.
Future-Proofing Your Mobile Game in 2025
The mobile gaming industry is changing fast, and the studios that adapt will be the ones that win. With rising costs, new platforms, and shifting player habits, developers and publishers need to think ahead to stay competitive.
Here’s how to future-proof your game and stay ahead in 2025.
1. Explore Direct-to-Consumer Strategies
App stores aren’t the only option anymore. With alternative app stores and web shops gaining traction, developers can now sell directly to players and avoid platform fees.
Why it matters:
If your game isn’t exploring direct-to-consumer models yet, now is the time to start.
2. Shift Toward Hybrid-Casual or Live-Service Models
The days of hyper-casual, one-hit wonders are fading. Instead, hybrid-casual and live-service games are proving to be more sustainable.
Why it matters:
If you want long-term success, your game needs strong player retention.
3. Consider Browser Gaming & Alternative Platforms
HTML5 gaming is making a comeback. Why? No app store fees, instant play, and full platform independence.
Why it matters:
The web is a massive untapped opportunity for game developers—it’s time to take it seriously.
4. Use AI & Automation to Cut Costs (But Be Smart About It)
AI isn’t replacing game developers, but it is changing how games are made.
Why it matters:
Smart use of AI can help teams work faster and smarter—just don’t rely on it blindly.
5. Target Emerging Markets Where Investment is Growing
Western markets are maturing, but real growth is happening in MENA and Asia.
Why it matters:
If you’re not thinking about MENA & Asia, you’re missing a major growth opportunity.
6. Optimize UA Spending—Organic Growth & Retention are Key
With UA costs at an all-time high (64.2% say it's a major challenge), developers need smarter marketing strategies.
Why it matters:
If your marketing budget isn’t working smarter, you’re wasting money.
The Bottom Line: Adapt or Get Left Behind
2025 isn’t about business as usual. The studios that evolve, explore new platforms, and rethink monetization will be the ones that win.
- Take control of your revenue with direct-to-consumer strategies.
- Invest in retention-driven models like hybrid-casual and live ops.
- Expand beyond app stores—browser gaming and HTML5 are growing.
- Leverage AI to work smarter, but don’t over-rely on automation.
- Look beyond Western markets—MENA and Asia are booming.
- Spend smarter on UA—focus on organic growth and long-term engagement.
The industry is changing fast, but those who adapt will thrive.
The Road Ahead
The mobile gaming industry isn’t out of the woods yet, but 2025 is shaping up to be a turning point. After a tough couple of years filled with layoffs, rising costs, and shifting market dynamics, the industry is adapting.
There’s no single formula for success, but one thing is clear: companies that embrace change will thrive.
For developers, publishers, and investors, this is a time of opportunity—but only if you’re willing to adapt.
So, What’s Your 2025 Strategy?
Every studio, big or small, needs to ask: Are we playing by the old rules, or are we evolving with the industry?
The companies that ask the right questions, stay flexible, and innovate will be the ones that lead mobile gaming into the next phase.
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