By Omri Argaman, CMO & CGO, Zoomd
If the stereotypical gamer is a teenage boy playing games in his basement, then skill games are breaking the industry’s stereotype.
According to WorldWinner CEO Nancy MacIntyre, last year, 55% of skill game players are women, and one-third are older than 45.
Beyond the demographics, skill games deliver value because they provide a social component with most games either head-to-head or multiplayer, and in most cases, they require real physical or mental skills versus luck-based games.
For game developers, skill games generate engagement that delivers revenue. Data from WorldWinner showed that a skill games player plays 39 hours/month (vs. 34 for a typical game player), spending $76.63/month on skill games (vs. $48.48 spent by a typical gamer). And with the challenges game developers have experienced following the COVID-19 boom, skill games provide a revenue growth opportunity for developers.
With the money players are spending on skill games, it’s easier to provide lucrative prizes that spur additional growth. That’s in part why the WorldWinner CEO said that skill games are on track for 30% annual growth vs. only 5% for the industry, increasing from 5% of the games industry revenue in 2020 up to 15% by 2025.
By hosting a nearly continuous stream of tournaments where players compete for prize pools, the skills games industry is creating a recurring revenue stream that is driving the aforementioned growth.
To ensure that all players have a fair and enjoyable experience, skill game developers like Papaya Gaming rely on advancements in machine learning technology using data analytics to effectively match players with similar skill levels. By injecting a statistical formula to evaluate player behavior in real-time, Papaya is able to provide the next challenge, possible reward, or the next tournament for that player to play. Technology is enabling the continued success of skill games.
Skill Games Growth is Global
According to Fortune Business Insights Skill Gaming Market Analysis (2019 – 2030), Asia-Pacific is the largest as well as the fastest growing market for skill games, ahead of North America. And through 2030, Asia-Pacific is also the fastest growing region with a predicted 15.3% CAGR vs. 12.9% CAGR for Europe and only an 11.5% CAGR for North America.
A second trend predicted in the Fortune Business Insights data is the growth of card skilled games, particularly in North America. Though card games, like poker and rummy, currently account for 25.2% of skilled games, the researchers forecast card games to grow to 30.5% by 2030, passing board-based games, such as checkers and chess, as the leading skill game. Tile-based games, including dominoes and Mah-Jong, are also predicted to grow from 15.1% to 16.4% by 2030.
Kids market: Skill games opportunity
A real win-win opportunity for skill game developers is the kids’ and youth market. With kids already playing games across devices, it makes sense to develop skill games that will enrich their learning experience while simultaneously being cool and fun enough to encourage kids to play. Like baby carrots and apple sticks, it’s a challenge to appeal to both parents and kids, but a game developer who can appeal to both will profit from this.
Though math is a natural subject that could benefit from skill games, most school subjects could succeed as skill games. Word games will improve vocabulary, trivia games can help kids learn history and science, and time-based reading games can focus on reading comprehension.
Though kids’ skill games won’t generate the same revenue as the aforementioned adult-focused WorldWinner games, I believe that if successful, they can instill skill game interest in kids who will grow up more likely to play skill games.
Skill games shouldn’t replace time spent reading books or playing outside. That said, kids are already playing games online, and most schools are moving from physical books and workbooks to screen-based learning. If developers provide some parental controls and even include time limits on daily gameplay, they can enable a positive gaming experience.
From grandmothers to their grandkids and everyone in between, skill games have an opportunity to grow by providing real utility, fun, and social interactions, delivering on the Internet’s promise of connecting people. That’s a great opportunity for game developers.
