There don’t seem to be many surprises on the mobile gaming market. Two operating systems covering 99% of the market share, each having its own global marketplace. Everybody knows Amazon apps, AppGallery or the Galaxy Store, it seems like market penetration isn’t a big challenge, is it? Traditional app stores, while established, can feel like a crowded marketplace, making it tough for even the most innovative games to stand out. Let’s uncover a massive, untapped global audience together. Let’s veer off the mainstream and explore local, reliable alternatives capable of generating sustainable, incremental revenue streams for both bigger and smaller games. 

The Role Of HTML5

Let’s start with a few facts. HTML5 is a version of Hypertext Markup Language (HTML), which is used to present various content on the web. It introduces elements, attributes, and behaviors, providing more powerful and flexible ways to create web applications and indeed web games. Thanks to its flexibility, its popularity among mobile game developers is growing. It brings several benefits:

  1. Cross-Platform Compatibility Without Compromises: HTML5 games can be used on any device with a web browser, including phones and tablets. There is no need to create separate versions for different operating systems; it is the catch-all platform.
  2. Simple Development Process: Developers can use HTML5 together with JavaScript and CSS to build high-quality and engaging games, which reduces complexity and costs compared to native apps (you can still achieve a “native app” feel while using this technology).
  3. Distribution and Accessibility: HTML5 games can be easily distributed on the web, making them accessible to a broad audience without the need to download the games to their devices.

As a highly accessible cross-platform technology, the importance of HTML5 is growing in alternative distribution markets. Local sellers (usually mobile operators) can have their own marketplaces available on all important devices. These marketplaces can significantly increase the resilience of game developers, providing crucial diversification and a sustainable, reliable incremental revenue stream.

Enter Local Marketplaces

There is a large number of local marketplaces that cleverly sidestep the limitations of traditional app stores. How? By focusing on subscription-based game platforms traditionally powered by carrier billing. Subscription-based means premium. Users of these platforms enjoy games in their purest form, which means:

  • No ads interrupting the experience
  • No shady techniques gradually increasing addiction
  • No unfair pay-to-win situations

Users pay a fair subscription fee and, in exchange, receive a curated catalogue of high-quality games.

The Compelling Advantages Of Local Subscription-Based Markets

  1. Guaranteed Revenue: If the unpredictability of free-to-play is concerning you, you may find subscription stores appealing. With the subscription model, every subscriber is a paying customer, creating a steady revenue stream. Revenue is shared fairly using metrics like usage or playtime, ensuring a more equitable distribution.
  2. Global Domination (Almost): Emerging markets are often overlooked by other platforms. In some cases, it’s local regulations; in others, user behavior makes the “global approach” ineffective in these regions. Carrier billing provides easy access in regulated markets and areas with relatively low credit card usage for internet transactions, making it a game changer for regions like Southeast Asia, LATAM, and MENA, where local stores play an important role. This approach suddenly unlocks a significant untapped market of prepaid mobile users.
  3. Diversification and Company Resilience: Mobile game businesses remain in the hands of two giants defining the rules. Modifications to these rules have immediate and global impacts, making especially small and medium-sized businesses more vulnerable to changes. It doesn’t matter if the change is positive or negative; many aim to protect users, but it always requires time and resources to study the new rules and make often significant modifications. Entering local and alternative markets generates incremental revenues and helps businesses survive difficult times while adapting to changes in global store rules.

Indeed, the local approach comes with additional challenges, which can be particularly high for small developers. However, the good news is that there are distributors and aggregators who can help with everything, providing guidance and assistance throughout the process.

What You Need to Keep in Mind When Going Local

  • Localization: Often underestimated in global strategies, being available in the local language is highly advantageous.
  • Marketing Requirements: The complexity gradually grows within an omnichannel operation. Each store requires specific assets and texts in different lengths, styles, and languages; an experienced distributor can assist with this.
  • Extensive Sales: If you want to access local markets directly, you will definitely need to expand your sales department. It is harder for smaller developers to gain direct access to many markets, as they often prefer to work with a small number of established aggregators. Therefore, partnering with one of them is recommended to maximize market penetration.
  • Quality Assurance: Local subscription stores work with premium games. Premium quality is not only expected from a business model perspective, but users of such services also expect high-quality experiences. Therefore, the QA process can be challenging. Ask your selected distributor or aggregator for a QA checklist that will help you work more efficiently and integrate it into your development process.

The Impact Of DMA In The EU

The DMA (Digital Markets Act) entered into force on November 1, 2022, and became applicable on May 2, 2023. One practical impact is that Apple and Google can no longer prevent competition on their operating systems. While establishing a truly competitive app store is still complicated, as they have (expectantly) met the minimal requirements in a manner that is very impractical for competitors, we are starting to see the first results (e.g., the Epic Store becoming available on iOS). The European Commission continues to pressure the gatekeepers to implement the DMA rules more appropriately, but the already existing local stores have received an immediate boost and now have more operational space for their platforms. The landscape of alternative stores will flourish, and ultimately, with more competition, users can receive higher-quality services at better prices. For local players, this law plays an important role as they have obtained a legislative framework that makes it sensible to invest in service quality and availability improvements. As the EU is the third-largest economy in the world (behind the U.S. and China), this presents tremendous opportunities for everyone interested in growth within the EU.

Conclusion

While traditional app stores dominate the mobile gaming landscape, exploring local and alternative marketplaces can unlock significant opportunities for developers. By leveraging the flexibility of HTML5 and the advantages of subscription-based models, game developers can tap into new revenue streams and reach untapped markets. The evolving regulatory landscape, particularly in the EU, further enhances the potential for these alternative platforms. Embracing these opportunities not only diversifies revenue but also builds resilience against the ever-changing rules of global app stores. Let’s venture beyond the mainstream and discover the vast potential of local marketplaces together.

About The Author: Robert Schmiedl is the Managing Director of TuuT s.r.o. He studied Finance, Banking, and Investment at the Technical University in Košice and Economy and Management at the University of Côte d’Azur in Nice. Before co-founding TuuT, he worked for a mobile games development studio and an international telecom corporation. You can reach him at robert@tuut.sk