The need for growth engines: What they are and why they matter

• 2025 will bring major shifts in the games industry through key “growth engines”.
• These engines will drive momentum for industry advancement.
• Pocket Gamer Connects San Francisco 2025 will focus on these key topics.

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The games industry has faced significant headwinds since 2023, but 2025 could bring much-needed changes. 

Some key factors could help the industry return to growth. Industry analyst Matthew Ball has identified essential ‘growth engines’ that could provide the necessary momentum to drive the industry forward. Currently, the games industry is at a critical juncture as it addresses its challenges. Ball believes these growth areas could help the games industry reach its potential.

Ball’s conclusions will not surprise those who have attended our Pocket Gamer Connects (PGC) conference series, where such growth opportunities are regularly discussed. 

However, this industry is constantly evolving, and at PGC San Francisco 2025 (March 17th to 18th), these growth engines – along with all the hottest industry trends – will again take centre stage as industry leaders offer the latest insights into the key topics shaping the sector.

But what are these growth engines, and how will they change the industry?

Emerging Non-Core Markets

In recent years, areas like the Middle East, North Africa (MENA), and Asia have become key game industry places. Supported by government help, favourable national policies, and lower cost of making games. Businesses in these regions are discovering new ways to grow and attract more consumer spending. They are gaining a larger share of the money spent on games and developing titles that attract diverse players. They bring fresh cultural ideas and innovative ways to play and are starting to compete with well-known game makers. As these areas grow, the next big game might come from studios that use these strengths, marking a significant change in the global games market.

Pocket Gamer Connects empowers emerging markets by organising region-specific events that address industry needs. In the MENA region, the Dubai GameExpo Summit and Pocket Gamer Connects Jordan are vital platforms for local and international professionals to connect and explore new business opportunities. These events strengthen the regional ecosystem and pave the way for further expansion into other dynamic markets. Plans are underway to extend the Pocket Gamer Connects footprint into Shanghai and beyond, opening up more business opportunities to operate in these emerging markets.

User-Generated Content

Platforms like Roblox, known for emphasising user-generated content (UGC), are successfully navigating industry-wide declines in player engagement. They boast millions of monthly active users and a diverse demographic, showcasing the strong demand for creation-driven experiences. 

Fortnite’s engaging emotes and striking skins have captured the hearts of fans worldwide. However, its most revolutionary contribution to user-generated content began with the introduction of “Creative Mode,” which empowers players to create uniquely personalised experiences. In 2023, Epic Games launched the Unreal Editor for Fortnite (UEFN) following the record-breaking adoption of these user-generated content features. UEFN allows creators to evolve into professional developers and is widely regarded as a transformative tool in the industry. Despite encountering technical challenges, many creators genuinely appreciate Epic’s significant opportunities and investments in this area.

Similarly, UGC modding is flourishing, with various platforms reporting billions of annual mod downloads. This surge is driven mainly by popular games – like Minecraft and The Sims 4 – which establish grounds for creative expression among players. The communities surrounding these games underscore a deep-seated enthusiasm for user-created content, reflecting players’ desire to personalise their experiences. As modding becomes increasingly accessible, it enhances gameplay and fosters collaboration and innovation, allowing people to share their unique creations with a global audience.

Social Features

The social aspect of games plays a key role in keeping players engaged. Multiplayer games now emphasise collaboration over competition, fostering shared experiences and helping players build their social identities. Games that effectively incorporate social mechanics through voice chat, cooperative missions, or in-game events dominate player engagement and can see significant success.

Handheld Games

The resurgence of portable games is attributed mainly to innovative devices such as the Nintendo Switch and Steam Deck. These platforms enable players to immerse themselves in their favourite games from virtually anywhere, distinguishing them as appealing alternatives to traditional home consoles and computers that rely on stationary setups. Furthermore, rapid advancements in mobile GPU technology have played a pivotal role in this revival. By offering powerful graphical performance comparable to high-end consoles or computers, these improvements allow for developing sophisticated, immersive games that deliver rich visual experiences while on the move. The appeal of premium gaming experiences has grown, attracting a broader audience that values both convenience and quality in their games activities. This demand has also increased the need for cross-platform compatibility, enabling a wider variety of titles to be released.

Mobile Games

Mobile games are expanding their boundaries, contributing to the growth of handheld gaming devices and cross-platform releases. While the sector has faced challenges, mobile still generates just under half of all game sales and far exceeds the revenue of other media and entertainment. 

Market analysts Newzoo reported that of the $187 billion generated in 2024 by all kinds of games, the mobile games market share is 49% or $92 billion. With millions of mobile devices now capable of running games with specs comparable to mid-tier consoles, the market is ready for a new wave of high-quality titles.

Pocket Gamer Connects has been a leader in supporting the mobile games sector for more than a decade. With a strong belief in the industry’s potential, we have consistently provided the latest insights, trends, and opportunities. We have become the primary resource for anyone looking to understand the dynamic changes in mobile games, driving the industry forward with passion and expertise.

App Store Regulation

Despite stagnant spending in mobile games, profits from app stores remain high. However, regulatory changes can disrupt the current situation, opening up opportunities for alternative distribution models outside the more mainstream app stores such as Google Play. With a wider variety of app stores and distribution methods available, companies could expand their reach and generate a larger revenue share, potentially transforming the economics of mobile games.

Advertising 

Games represent a significant portion of digital media consumption, yet advertisers allocate only a tiny fraction of their digital ad spending to this medium. Historically, challenges like ad placement and scalability have constrained revenue growth in this area. However, with rising development costs and stagnant prices, advertising is becoming increasingly important. Ad supported models, similar to those used by streaming platforms, offer a way to generate new revenue streams while maintaining affordability for consumers. While hybrid monetisation – combining in-app purchases and ads – has long been a staple in mobile games, the genuine hurdle is attracting brand advertisers outside the games industry to commit investment towards in-game ads at scale. Overcoming this barrier could revolutionise games economy, creating a win-win scenario for developers, advertisers and players alike.

What does this mean for 2025?

As 2025 begins, the games industry finds itself at a pivotal moment. It has faced significant challenges, including job losses and the closure of several game studios. However, new opportunities are emerging to revitalise the sector and promote growth.

 At Pocket Gamer Connects San Francisco 2025, industry professionals will gather to explore these transformative forces, sharing insights and strategies to help businesses thrive in the coming year.

A standout panel titled “Supercharging Games: What Growth Engines Will Power the Industry’s Progress in 2025?” will address this topic directly.

Secure your ticket to attend and participate in the discussion with us.