In brief
Mobile games were the leading revenue source in 2016, generating 90% of Google Play revenue and 75% of App Store revenue. Together, the two stores recorded more than 90 billion downloads and US$35 billion in revenue.
A report released earlier by a research firm found that, in the fourth quarter of 2016, Google Play’s non-gaming apps saw revenue surge by 82%. However, mobile games remained the best way to make money. The latest report from a market research firm shows that a full 90% of Google Play’s revenue last year came from mobile games, while the corresponding share for the App Store was 75%.
The report first notes that users spent more time in apps and games in 2016. Total time increased by 150 billion hours compared with 2015, reaching 900 billion hours—an increase of approximately 25%. Users spent the most time in apps such as Google Chrome, YouTube and Facebook. The hit game Pokemon Go also contributed a substantial amount of time, thanks to its large player base during its early days.
The report also shows that, last year, both Google Play and the App Store recorded an increase in downloads of apps and games. Combined downloads across the two platforms exceeded 90 billion, up by 13 billion from 2015. As in 2015, Google Play continued to record more downloads than the App Store. Almost all of this 15% growth came from Google Play, while approximately 80% of Apple’s growth came from China.
In terms of revenue, 2016 was certainly a strong year for Google Play and the App Store. Their combined revenue rose by 40% compared with 2015, reaching US$35 billion. Unlike downloads, however, the App Store generated more revenue than Google Play. App Store revenue grew by nearly 50%, with half of its total revenue coming from China. Games accounted for 90% of Google Play’s revenue last year, compared with 75% for the App Store. Including other third-party Android stores and advertising revenue would bring the combined revenue total to US$89 billion.
https://unwire.hk/2017/01/18/about-90-percent-of-google-plays-revenue-came-from-games/software/