A new report from GameIS and Deloitte has taken a look at the gaming industry in Israel, finding that the country’s gaming industry has seen a massive 760% increase in revenue over the past five years, with an increase average of 54% year over year. .
Industry revenue currently stands at $8.6 billion, or 5% of the global total, up from $1 billion in 2017, with mobile by far the most popular platform in the country. Similarly, the number of people employed by the country’s gaming industry has increased from 4,000 to 14,000 – 250%, with an average increase of 38%.
Mobile is king
The data also shows that Israel has followed a global trend, with mobile games becoming more popular and earning developers more revenue during the pandemic, and now that growth after lockdowns eased.
Installs increased from 8.60% in January 2020 to 18.50% in April 2021, while ISPs increased from 7.95% in January 2020 to a peak of 18.07% a year later.
Mobile is the most popular platform in Israel, with social and casual being the main investment categories. These genres thrive on strong monetization strategies and strong analytics capabilities, and Israel’s considerable data analytics industries and expertise give them a competitive edge.
Every day, two of the top 10 games among the most profitable and most downloaded games were created by Israeli developers. CrazyLabs and Supersonic games are cited as must-haves in the most downloaded charts, with games such as Slotomania and Coin Master being common sites in the top-grossing charts.
Specifically, Slotomania developer PlayTika is named as the most successful gaming company in the country.
Since these genres are the most successful, many developers focus on mobile development due to the faster development time and market audience for the genre.
No triple A studios in Israel
The Israeli gaming industry, however, faces notable challenges. The scarcity of specialized games programs at universities and the difficulty faced by foreign workers wishing to migrate to Israel means that there is a lack of local talent in the industry – notably, the country does not have triple A studios .
The report also cites a lack of global investment and the demand for rapid revenue and rapid ROI as driving the mobile focus – and success – in the market. country.
Government funding is also a notable obstacle, if Israel wishes to go mobile. Currently, the Israeli government does not offer any grants for game development, claiming that the Israel Innovation Authority lacks expertise in the games industry. The relative speed and earning potential of mobile games, especially in genres where Israeli companies can use their expertise in data analysis, therefore makes mobile a more attractive choice.
The report says these hurdles can be overcome through a two-pronged approach: increased funding from the Israeli government – with strategies such as grants, loans and tax incentives – could help the Israeli gaming market compete. with other countries.
In terms of human capital, more training programs, internships and university courses could see the Israeli market grow further both in the mobile games space and in the broader games industry.
Last week, Joffre Capital acquired a 25.7% stake in PlayTika, which recently laid off around 250 employees at studios around the world.