Ever since mobile games became a thing over a decade ago, the popularity of these leisure-time apps has only increased with time. This has resulted in the rise of various categories of gaming apps such as hyper-casual games. But what's all the hype about these games - how much do hyper-casual games make?
Although it's quite difficult to give a definitive answer, it's more than possible to make millions of dollars from developing hyper-casual games. For example, according to IronSource, hyper-casual games generate annual revenue of $2 to $2.5 billion.
However, this largely depends on the developer, provider and the associated marketing budget.
And while big gaming studios with massive budgets can certainly expect to make millions, that might not be the case for smaller India developers that are just starting out. Regardless, there are still certain methods that can be leveraged in order to make large profits from hyper-casual games.
What's the Main Secret Behind Hyper-Casual Game's Revenue Potential?
It's advertising or what's also known as in-app ads. This is how most publishers generate revenue nowadays, which is a notable deviation from the original concept of up-front payments.
However, this trend of shifting the focus on ads isn't unusual or unnatural because it follows the tendency of media usage shifting to mobile applications. This is where hyper-casual games thrive due to the massive and diverse player base combined with high engagement rates.
One of the primary reasons for this very lucrative ad-based approach is the constant increase in people who play mobile games.
More and More People are Now Playing Hyper-Casual Games Than Ever Before
According to the same data courtesy of IronSource that we cited earlier in the article, there were approximately 660 million hyper-casual players in 2018 from a total of 2.5 billion users analyzed.
This means that both developers and advertisers can tap into a truly huge market. And in return, this leads to massive advertising campaigns that translate into serious revenue potential, especially when you consider the 22 million hyper-casual installs per day that took place in 2018.
Do Hyper-Casual Games Attract New Players to the Industry?
Absolutely, based on the same data from IronSource it turns out that the new gamers coming from the hyper-casual genre were 101 million from all 2.5 billion players who were analyzed. This obviously shows that HC games appeal to newcomers more than other mobile games.
But apart from the sheer volume of players, another key metric for game developers related to their earnings potential is whether the users are high-value players or not. This is crucial since the value of the players has a direct impact on revenue.
To put things into perspective, high-value players will be typically more involved and engaged in ads and in-app purchases, while low-value players most likely won't.
There's no doubt that there's a massive revenue potential within the hyper-casual gaming genre, mainly due to the sheer size of the market.
Still, not every hyper-casual game developer can expect to earn millions of dollars, because a huge niche with massive earnings potential also means stiff competition.
But you don't even have to dive into the hyper-casual market if you don't feel like it since there's another gaming niche that's probably just as lucrative - casual casino games!
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