Mobile gaming expected to rise by 15% YoY
In fiscal 2016, Electronic Arts (EA) declared mobile gaming revenues of $570 million, driven by increasing access to smartphones around the world. EA expects mobile revenues to drive fiscal 2017 earnings as well and will be hugely important if the firm can reach its revenue target of $4.9 billion.
EA expects digital revenues of $2.9 billion in fiscal 2017. Digital revenues include mobile and full-game downloads as well as downloadable add-ons for existing games. The firm expects mobile revenues to rise by 15% YoY in fiscal 2017. Mobile franchises will benefit from continued expansion of the US-based (SPY) iOS (AAPL) and Android (GOOG) (GOOGL) platforms, as well as continued strength in PC gaming.
According to Newzoo, mobile gaming revenues are expected to surpass PC gaming revenues for the first time ever in 2016. Mobile gaming is expected to account for 37% (or $36.9 billion) of total revenues, indicating a rise of 21.3% YoY.
Other players in the mobile gaming space
In 2015, Facebook (FB) Messenger launched its first game—Doodle Draw—for its active users. Doodle Draw is basically an extension of the old popular game Pictionary. The idea is to draw a picture, send it to your friends, and ask them to guess what you drew.
Doodle Draw is similar to the game Draw Something from Zynga (ZNGA). Zynga is heavily invested in the mobile gaming space and bought Draw Something for $183 million in March 2012.