These changes have created new opportunities for studios, particularly those that are able to adapt and create high-quality, complex games with advanced monetization strategies. In a nutshell, these games rely on hyper-casual creatives and basic mechanics, and the addition of some more complex mechanics, monetization strategies, and meta. The industry is now seeing a trend towards hybrid-casual games, which offer higher quality and complexity compared to traditional hyper-casual games. However, the market has since adjusted to these changes and both iOS and Android have seen a stabilization in ad spending and revenue giving us an overall increase in the market value. The initial release of iOS 14.5 also caused uncertainty in the market, as advertisers shifted their budgets from iOS to Android in order to target specific actions that correlate with a higher user value. In response, studios may need to find ways to monetize their games through other means, such as targeting niche audiences or finding new revenue streams. Additionally, a change in users' preferences in which they are looking for less ad-aggressive experiences and a product that may engage them in the long run affected the demand for ads even further. This is due to the fact that users are now given the option to opt-in of sharing their advertising ID with advertisers while in the past this was the default, leading to a decrease in demand for ads and a lower eCPM. Recent changes to privacy policies, particularly with the release of iOS 14.5, have impacted the ability to monetize hyper-casual games through traditional means i.e. It is important for studios to understand the current market conditions in order to navigate these challenges and take advantage of opportunities in the industry. This makes it more difficult for studios to create a successful game, whether it be a hit or targeting a specific niche. The challenge relates to a crowded market, with an increasing number of games available on the Apple Store and Google Play Store, particularly within the hyper-casual genre. Specifically for game studios, this process is driven by the value that a studio can bring through its ability to either create hit games or target a niche audience. The gaming industry is evolving and undergoing a consolidation process, with larger companies acquiring smaller ones and smaller companies merging with each other.
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