The rise of mobile games in Latin America
Mobile gaming is the driving force of the gaming revolution in Latin America and represents the 48% of market income in 2021. With the staggering number of 273,4 millions of mobile gamers, that represent the 58% of the region's online population, It is evident that mobile games have conquered the hearts of Latin American players.
Almost half of Latin American mobile gamers are willing to spend money to play in the online casino, which makes mobile the most lucrative segment.
The increasing number of smartphone users is influencing the growth of the gaming market. The mobile experience propelled online gaming to another level of access in Latin America. You can see people with their phones, playing on the bus, in the subway. The game entered a totally new socioeconomic segment in Latin America. In that sense, everyone is now a potential player.
Besides, The adoption of 5G also impacts the growth of the Latin American mobile gaming sector. The Global Mobile Communications System has stated that South America will gain a 7% 5G connection in 2025. A high-speed Internet connection will allow gamers to enjoy the most played mobile games, como Call of duty mobile y Pubg mobile.
Besides, Mobile gaming hardware developers are also incorporating 5G technology. For example, the Asus ROG phone, Black Shark 2, now has new equipment that will easily adapt to the needs of the players. Therefore, This 5G accessibility will provide the continued growth of popularity of multiplayer mobile gaming in this region.
Cloud gaming could also break barriers for Latin American gamers. The concept behind cloud gaming is that playing high-definition titles will no longer depend on a console or computer, both still very expensive for the majority of the population in Latin America.
However, This region has to face some challenges:
The low economic growth: Projections from the Economic Commission for Latin America and the Caribbean indicate that all subregions of LatAm will experience lower economic growth this year compared to 2022, which is expected to be 1,2%.
Talent outsourcing: There are many talented developers located in Latin America, however, this talent is often outsourced to studios or editors outside the region. Brazil, For example, It is known for gaming conferences such as BIG and Brazil Game show, as well as by the Wildlife study. However, given the instability of the currency in recent 3 years, many independent studios and developers have shifted their focus to commissioned work, or work for studies outside Latin America.
Payment infrastructure instability: Similar to the problems with payments infrastructure in Africa, There is high friction in payment processing in Latin America. According to the Visa and Newzoo report, half of players in Latin America and the Caribbean cancel a purchase when they have problems. These players prioritize speed, ease of use and security.
The rise of the gaming market in Latin America is mainly due to the growing penetration of mobile phones and the Internet throughout the region. There are many opportunities for game developers, but they have to understand the needs of their consumers.