US mobile gamers keen for new digital adventures like Pokémon Go 

The success of Pokémon Go in the US reflects the profile of mobile gamers in the country, who are predominantly tech-savvy and have an appetite for new mobile technologies that can enhance their mobile digital experience. Augmented reality apps and companion products are fuelling a radical shift in the mobile gaming environment and boosting user engagement, which in turn is expected to generate new revenue opportunities for telecoms players as well as those from adjacent industries.

Figure 1: Frequency of game playing among adult mobile users in the US

Source: GSMA Intelligence Consumer Survey, July 2016

US mobile gamers form a testbed for innovative digital solutions

According to the GSMA Intelligence 2016 Consumer Survey, two-thirds of adult mobile users in the US play games on their mobile phones once or more per month, with more than half of these (equivalent to 35% of the adult mobile user base) playing every day. Mobile gaming is prevalent across several age groups; it is clearly not just about the younger generations, and there is an almost even distribution of men and women.

Analysis of consumer behaviour in the US suggests a greater willingness among adult mobile gamers to embrace new mobile devices, technologies and accessories that will enhance their gaming experience. The vast majority of US adult mobile gamers are using smartphones and mobile internet services, and claim to have a good understanding of mobile phones as well as upcoming mobile products and technologies. More than four out of five adult mobile gamers in the country also actively use IP messaging services. And around four out of five adult mobile gamers (78%) in the US say it is important that their next phone is compatible with a set of companion accessories (e.g. smart watch, fitness tracker, virtual reality headset). Together, these results go some way to explaining the appetite for the new style of mobile gaming.

Augmented or virtual, the gaming reality is set for radical change

Niantic’s Pokémon Go brought novelty to the mobile gaming landscape through augmented reality, which led to record high user engagement with the app. According to data from Verto Analytics, the average user spends more than 54 minutes per day playing Pokémon Go in the US (those aged 18 and above), compared to 35 minutes per day spent on Facebook.

Verto data shows that a month after launch in the US, Pokémon Go still had a daily audience of nearly 15 million adults, compared to 4 million for Candy Crush and 3 million for Clash of Clans. Player engagement has only slightly dipped, with the game garnering 10 sessions per day for the average user. The game’s retention numbers are also impressive, with a 21% churn rate 10 days after launch; mobile games typically tend to lose up to 60% of their audience within 24 hours of launch.

According to Sensor Tower estimates, Pokémon Go has earned more than $200 million in global net revenues on the App Store and Google Play during its first month of availability. Although long-term revenue opportunities are still being debated, AR (and VR) are likely to fuel many more applications with companies seeking greater user engagement. Understanding consumer behaviour will clearly remain important for all across the mobile ecosystem.