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‘Pokémon Go’ is more popular than ever, demonstrating the power of mobile games

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Business for the mobile game company Zynga (NASDAQ: ZNGA) is booming more than ever. In 2020, the company generated nearly $ 2 billion in revenue, an all-time high. And the good times continue in 2021, with revenues up 64% in the first half of the year.

As good as Zynga’s results are, other video game companies are also showing how powerful mobile games can be. In this video by Motley Fool Behind-the-Scenes Pass, recorded on October 18, Fool analyst Sanmeet Deo and contributor Jon Quast talk about Pokémon Go and how this unique game is about half the size of all of Zynga’s business.

Deo Sanmeet: Mobile games. For example, the US mobile game market has exceeded $ 2 billion in consumer spending in eight of the nine months from 2021 to date, including September. Average monthly spending is around 28% higher than recorded in the first nine months of 2020. Monthly spending for mobile games is pretty big when everyone thought last year was the peak, we all are. at home. I feel like last year basically with a lot of stuff it unleashed the power of mobile gaming and the interest, awareness and exposure to it and because of that it is riding that wave and it could slow down, no doubt, as a lot of the things that have benefited from the pandemic at some point will, but it’s cool to see these trends going much higher.

I think one more thing, September’s strong performance indicating that the mobile gaming market was supported by miHoYo’s second highest earning title. Genshin Impact, which marks its first anniversary of launch with spending nearly 120% month-over-month. It’s huge. It was a big problem that drove this. The best performing overtime is the United States. By consumption expenditure in September included Candy Crush Saga, Genshin Impact, excuse me if I said wrong, Roblox, Change machine, and many others, Clash of the clans, Candy Crush Soda Saga, and Pokémon Go. Jon, did you have any information or news on Pokémon Go?

Jon Quest: Yes I do and I wasn’t sure if we were going to have the time to do it. So it’s really exciting for me. Just let me settle down here. While pulling this I wanted to mention that we had questions about Nintendoaffiliation with Pokémon. I watched it here before the show. Nintendo does not own Pokémon directly, they own 32% of the voting rights at the end of 2020. It is important for Nintendo in some ways, however, Pokémon Go isn’t made by Nintendo, it’s made by a company called, oh what’s his name? Nutanix. Excuse me, I forgot the name. [Editor’s note: The name is Niantic.]

In all cases, Pokémon Go. This is a recent article by The ring. Pokémon Go Monthly active users grew 15% in the first five months of this year, 2021, while spending increased 49%. According to top app analyst Sensor Tower, the company also claims that 2020 has been the highest-grossing year for gaming to date.

Are you still there?

Deo: Yeah, I can hear you.

Quarter: Let’s go [laughs]. What’s really interesting about this new data from Pokémon Go is that he said he generated over $ 1 billion in revenue in 2020.

Now let me put this in perspective. Zynga, which is publicly traded, ZNGA pure-play on mobile games, many mobile game franchises, they made a turnover of just under $ 2 billion last year. This one application, Pokémon Go would be half of Zynga’s business.

He’s five years old now. Still insanely popular, more and more popular, especially now that people can start dating again. They have therefore just had their first live event since the pandemic. It was in Liverpool, England, and it’s these things called Safaris. Basically you attend these events and the Pokemon the game will unlock new Pokemon characters, variations on characters – paid events. People actually spend between $ 12 and $ 18 to attend these events so that they can capture the new Pokémon and variations of the Pokémon.

Around 700 Pokémon have been released so far on Pokémon Go, there are over 900 in total. The company hasn’t even released all Pokémon in total yet. They scale it so that they can continue this game.

They think they put in the bag for sure five more years Pokémon Go. But they really think they could even extend that to 10 or 15 years with whatever they have in the development pipeline for. Pokémon Go. Really interesting when you see how strong this game has been for the past five years.

Deo: Wow, this is crazy. Incredible statistic. This is interesting because it shows and we are talking about the overall growth of the entire video game industry as we saw in the data for September. Mobile gaming for this year compared to last year has seen pretty strong growth and mobile is a faster growing segment in the gaming industry, so it’s impressive.

Corn Pokémon Go, it’s interesting that you said that and the first thing that came to my mind is not to change any of these game companies because just because we’re out there doing stuff and not staying at home all day, for mobile games, we take our gaming system with us wherever we go and even the Switch, you can take it with you. It’s also almost a mobile platform. Playstation 5 and Xbox, I don’t think you can take them. You could take them physically and then put them in a TV obviously.

But things like Pokémon Go, we can do these different games and experiences wherever we are and it can even fit into our life outside the home and post-quarantine or pandemic life where we are and do things. Just an example of the convergence of gaming too, VR, metaverse like anything we’ve talked about, I’m probably going to be a record when I talk about it here in our weekly segments. But I see it’s very optimistic for mobile games and everything.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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