Mobile Gaming Enters New Era as Xsolla Report Predicts $126B Boom in 2025
Mobile gaming is set to shatter expectations in 2025, with revenue projected to reach $126 billion. This insight comes from the newly released Q2 2025 edition of The Xsolla Report: The State of Play, which outlines a rapidly evolving mobile ecosystem driven by hybrid monetization, direct-to-consumer (D2C) models, and a dramatic legal shift in the Epic Games v. Apple case.
The report paints a clear picture of a high-stakes industry. Despite a 6% decline in global game downloads in 2024, consumer spending soared to $150 billion across mobile apps, with gaming contributing more than half. This means players are spending more, but only on fewer, well-supported titles.
“The gaming industry is entering a new phase heading into the second half of 2025, shaped by regulatory changes, shifting mobile ecosystems, and rapid advances in cloud and payment technologies,” Berkeley Egenes, Xsolla’s Chief Marketing and Growth Officer, wrote in the report.
While the overall market is growing, competition remains unforgiving. Only 1.9% of newly released mobile games earned more than $1 million. More than half, 62%, failed to generate any revenue at all.
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Epic v. Apple Ruling Triggers Seismic Shift For Mobile Developers
The legal battle between Epic Games and Apple has reshaped how mobile games are monetized in the U.S. In April 2025, a federal judge ruled that Apple had violated a previous court order by attempting to restrict how developers could direct users to external payment systems. The court banned Apple from charging commissions on purchases made outside its ecosystem, signaling a major shift in mobile platform power dynamics.
This ruling has enabled developers to integrate call-to-action buttons, in-app messages, and direct links to web shops, where they can retain up to 95% of the transaction value. Previously, Apple’s 30% commission cut heavily impacted developers’ margins.
Xsolla President Chris Hewish described the ruling as a breakthrough. “This removes all friction to driving web-based purchases,” he said in the report, noting that developers are now free to inform players about web shop options directly in-game without fear of Apple’s previous restrictions.
Hybrid Monetization And D2C Strategies Reshape Growth Paths
To adapt to tightening competition and new opportunities, 72% of developers now use hybrid monetization models. These combine in-app purchases, advertising, and subscriptions to diversify revenue sources and appeal to more player types.
The report also confirms a growing adoption of D2C strategies. Around 23% of EU developers have already implemented D2C solutions, while 12% are in the process of doing so. Developers who use personalized web shops report up to 40% increases in user engagement and purchasing rates when paired with in-game promotions and event-driven campaigns.
Challenges remain. According to Xsolla’s survey, 75% of developers cite customer acquisition as the biggest hurdle in D2C implementation, followed by payment processing and regulatory compliance. But momentum is building, particularly in North America, Europe, and the Middle East, where developers are looking to expand their reach.
Genre Trends Show Uneven Growth, But Simulation Games Shine
Not all genres are thriving equally. Role-playing games (RPGs) led in revenue, earning over $2 billion from in-app purchases with a 7.2% success rate. Strategy games followed, while simulation titles delivered over 1 billion downloads and the highest success rate at 10.2%, suggesting strong player retention and engagement.
Puzzle games remain the top choice for adult players in the U.S., followed by action and strategy games. Meanwhile, hybrid casual games that blend simple mechanics with deeper progression systems are quickly gaining ground, showing a 30% increase in revenue compared to the previous year.
Global Regulations And Shifting App Store Control Reshape Future Strategies
Developers are no longer just building games – they are navigating a rapidly changing legal and regulatory landscape. In the U.S., new FTC rules have expanded protections around children’s data and forced greater transparency. The EU’s Digital Markets Act now mandates that dominant app platforms allow alternative payment systems and storefronts.
Japan and South Korea are also enforcing stricter rules, requiring compliance with fair competition laws and appointing local legal representatives. China continues to tighten spending caps and real-name requirements.
In this changing environment, legal compliance and revenue flexibility are no longer optional. As the report emphasizes, developers who act quickly and invest in alternative distribution, loyalty strategies, and smart monetization models will be best positioned for long-term success.
A New Mobile Order is Emerging
Xsolla’s Q2 2025 State of Play report makes one thing clear. The mobile gaming industry is entering a new phase – defined less by explosive scale and more by strategic survival. Developers must now master platform navigation, consumer trust, and financial control. In return, they may gain unprecedented freedom to build lasting relationships directly with players.
Mobile gaming is projected to grow to $156.58 billion by 2029. But in 2025, the winners will be those who adapt quickly, monetize wisely, and speak directly to the players who matter most.
