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News Link • Entertainment: Games

Smartphone games face new competition from social apps, says report

• http://www.gamasutra.com, by Tom Curtis
 The firm's new report (which excluded data from tablets) compared smartphone usage across various app categories and found that in Q1 2011, game app usage led social networking app usage by an average of 10 minutes per day, but in Q1 2012 those categories were even, with users spending an average of 24 minutes per day using apps in each category.

With social networking and game app usage now neck and neck, smartphone games have a real rival on the app market. Flurry warned that since game apps are seeing slower growth, demand could be reaching a saturation point, which partially explains why consumers are taking interest in other app categories.

In addition, Flurry noted that social networking apps have seen a much faster increase in ad revenue than games have. Between February 2012 and April 2012, game apps earned a respective 35 percent and 36 percent of total ad revenue on Flurry's AppCircle network, while social networking apps increased from 24 percent to 37 percent.

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