The mobile games investment landscape is currently bleak.

Let’s face the fact: The mobile games investment landscape is currently bleak.

If you’re currently seeking investment exclusively for mobile games, you’re in for the hardest time of your life. Investors and venture capitalists (VCs) are not prioritizing mobile games given the current landscape.

Why? Because of:

1. The overall economic situation: There are widespread layoffs and increasing costs of living. Everyone is scrutinizing their spending habits more closely.

2. Post-IDFA (Identifier for Advertisers) challenges: High Cost Per Install (CPI) rates and related issues have arisen after the implementation of IDFA changes. The impact of IDFA changes is widely recognized. Optimizing games and user acquisition (UA) for the ideal audience no longer has shortcuts as it used to. Games need to be developed, operated, and scaled with new approaches and models. Until these models become more widely accepted and reliable, investors are skeptical about the landscape. This skepticism might not apply to mobile games exclusively, as the difficulty of scaling is a challenge across the gaming industry.

3. Regulatory and legal effects: Concerns such as loot boxes and related matters have an impact on the industry.

4. Widespread avoidance: Since investors are hesitant to invest without a compelling and unique case, especially in later funding rounds, the overall investment activity is diminishing. There’s no one down the waterfall.

5. And so on.

How do I know this? I attempted to secure funding with a veteran team, an exceptional thesis, and a demo. We approached every potential investor and VC in the gaming industry, covering the entire spectrum from A to Z (in Finland from A to Ö). Although everyone acknowledged our outstanding team, thesis, and demo, they refrained from investing due to the current industry landscape. We put things on a break. Landed new opportunities (I’ll announce mine next week).

Moreover, I heard that Gamescom was exceptionally challenging for anyone pitching a mobile game studio.

Does this mark the end of the mobile gaming era? No. Is there hope for the future? Yes.

While investors are avoiding the industry for now, they remain optimistic that circumstances will change. I am also optimistic about mobile games, particularly concerning innovative mindsets and models for achieving scalability, reducing CPIs, identifying suitable UA channels, and establishing a solid business presence in the field.

There will be studios that demonstrate mobile gaming is still vibrant and promising. However, achieving this requires new strategies, including how you engage with your target audiences.