Puzzle games grow amid the battle for attention from mobile games with TikTok and short videos
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Olhar Digital
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Puzzle games grow amid the battle for attention from mobile games with TikTok and short videos

The mobile gaming market faces fierce competition that extends beyond the games themselves. Data from the first half of 2026 indicates a decrease in the number of installations for the most popular titles compared to the same period last year, as applications like TikTok, Instagram, and YouTube have begun to compete directly for users' time spent on games.

This analysis was conducted by Azur Games, examining the performance of major mobile games in the first six months of the year. Although there was a reduction in downloads, revenue showed growth in most evaluated genres, suggesting that the relationship between installations and revenue is becoming increasingly tenuous.

In this context, the puzzle game genre managed to stand out. According to data provided by Azur Games, block puzzles showed notable growth between January and mid-2026. The category also includes games with Arrow-style mechanics.

This advance is significant because it occurs while several other genres register declines or stability in downloads. For the company, this performance signals that such mechanics are no longer mere passing trends but are beginning to consolidate as a relevant subgenre in the sector.

Other types of puzzles also maintain a presence in the market. For example, Physics Puzzles experienced prior growth, but part of this audience has migrated to block and sort puzzle experiences.

However, the financial aspect shows great variation. Games belonging to the same subgenre can generate very different results, depending on both the mechanics used and the monetization strategy adopted.

The reduction in installations cannot be attributed solely to the number of available games. The analysis points out that mobile games need to compete for screen time with social networks, messaging platforms, and video services, citing TikTok, Instagram, and YouTube as primary competitors for user attention.

In practice, consuming short videos has begun to rival the act of starting a game. This helps explain why the market might record fewer downloads without necessarily showing a proportional drop in revenue.

Additionally, internal data from Azur Games reveals that eCPM, a metric related to the value generated by advertising, has been rising since the beginning of 2025. This fact reinforces for developers the need to maintain operational and monetization strategies capable of compensating for any possible decline in new player acquisition.

Another obstacle faced by new releases lies in the longevity of games that have already gained prominence. More than half of the 300 games with the highest number of installations analyzed by Azur Games were released before 2024, and some of these titles have been available for ten or even eleven years.

The participation of new releases in this ranking has also decreased considerably. In mid-2023, recent releases accounted for approximately 8% of the Top 300, while in 2026 this percentage fell to only 2%. This implies that new projects must compete against games that have accumulated years of content, knowledge about user behavior, and well-established monetization and LiveOps structures.

Puzzles emerge as an example of how a new approach applied to known mechanics can partially break through this barrier to entry.

Despite the positive indicators, creating a puzzle game is not a simple process for attracting players. This type of game requires a vast amount of content. When the experience is successful, users can progress quickly through levels, which imposes on developers the obligation to maintain continuous production of new challenges.

Difficulty balance is also crucial. If levels become excessively difficult too quickly, players may abandon the title; if they remain too easy, the experience risks becoming monotonous.

Some studios are already incorporating artificial intelligence to assist in level design and defining difficulty curves. However, this technology does not negate the need for specialized teams in design, balancing, progression pacing, and understanding player behavior.

Furthermore, large corporations have been active in this genre for many years, accumulating experience that is difficult for emerging studios to replicate.

The report also highlights a broader shift in mobile game development. It is no longer enough to produce a technically competent game to ensure success. Studios must plan monetization from the initial stages, develop long-term strategies, and maintain infrastructures capable of providing content and operating LiveOps on titles for several years.

Simultaneously, the growth of puzzles demonstrates that there is still room for new trends when developers manage to apply innovative approaches to existing genres. In a market where games compete not only with each other but also with the next feed video, finding ways to maintain player interest can be as vital as persuading them to download.

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Gaming sector records major mergers and acquisitions in 2026 despite mobile market difficulties
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olhardigital.com.br

Gaming sector records major mergers and acquisitions in 2026 despite mobile market difficulties

In 2026, the gaming industry witnessed significant mergers and acquisitions, even while facing challenges in the mobile sector. On August 4, 2026, the Saudi Arabian Public Investment Fund finalized the acquisition of EA for US$ 55 billion, establishing the largest LBO (Leveraged Buyout) in history. Five months before this event, the same fund had invested US$ 6 billion in Moonton, owner of MLBB.

During the period between the two transactions, the mobile gaming market experienced a 12% retraction in downloads and a 2% decrease in revenue generated by players. Despite the sharp market decline, the amounts paid were high, indicating discrepancies in indicators.

According to surveys by Drake Star, the 2026 figures are notable. In the first quarter, 51 M&A deals were recorded, totaling over US$ 100 billion in disclosed value. Although the mobile segment was a driver of this movement, the most prominent deal was the union between Paramount and Warner Bros. Discovery – which includes Warner Bros. Games – and the purchase of Moonton by Savvy Games, valued at US$ 6 billion.

Other significant acquisitions included Scopely's purchase of majority stakes in Loom Games (valued at over US$ 1 billion), and NCSOFT's acquisition of JustPlay (valued at US$ 202 million). The acquisition of Bluetile Games by Nazara, the purchase of a stake in NetEase by Mattel in Mattel163, and the acquisition of Budge Studios by Haveli were also noteworthy.

In addition to acquisitions, private financing reached substantial figures, totaling 106 deals with an aggregate value of US$ 785 million in the first quarter. In the second quarter, Drake Star reported positive results, with 51 transactions maintaining a 'healthy' level, totaling US$ 1.4 billion. These transactions mainly involved PC/console and mobile game studios, as well as small and medium-sized enterprises.

Among the second-quarter deals, the acquisition of Playstack by IMC (a TPG investment vehicle), the repurchase of management of CCP Games by Pearl Abyss, the purchase of Hipster Whale by Atari, and the acquisition of Metacore by Supercell stand out. Private financing in this quarter exceeded US$ 2.5 billion, making it the strongest in the last 12 months and the second largest in the last three years.

However, these totals still do not surpass the volume of 2025, which registered US$ 161 billion in disclosed value. This amount was driven by the US$ 55 billion LBO of EA and the US$ 82.7 billion offer from Netflix to Warner. The difference lies in the counting methodology: both 2025 deals were recorded on the announcement date. The EA LBO, announced on September 29, 2025, and the Netflix offer to Warner, were included in that year's accounting.

Although the EA money was only transferred in August 2026, after approval by the US foreign investment committees and the European Commission on September 21, Paramount sealed a deal with the 12 states contesting the purchase of Warner Bros. Discovery. This allowed the US$ 110 billion deal to be concluded before the end of the month. If both operations are accounted for by the closing date, 2026 concentrates the largest LBO and the biggest merger in Hollywood history involving game studios. Despite this, in terms of announced value, 2025 remains higher, but in terms of effectively paid value, 2026 has no historical precedent.

Even with numerous acquisitions in the mobile sector, the first half of 2026 recorded US$ 40 billion in player spending, representing a 2% drop compared to the previous year. The situation is worsened by a 12% drop in downloads, totaling 24 billion. Additionally, the first quarter showed 11.9 billion game installations, the worst first-quarter record since 2019, according to Sensor Tower.

The report also points to advertising as an increasingly vital revenue source for mobile game publishers, especially due to reduced consumer spending. According to the company, developers are prioritizing hybrid monetization strategies, combining in-app purchases with advertising to compensate for the audience slowdown.

It is crucial to note that Sensor Tower only considers data from Apple's App Store and Google Play, excluding D2C (Direct-to-Consumer) data, alternative Android stores in China, and ad revenue. Incorporating this data changes the numbers significantly, as evidenced by the Newzoo survey. The latter points to a value of US$ 113.3 billion for 2025, contrasting with Sensor Tower's US$ 81.75 billion, and projects US$ 121.1 billion for 2026.

The paradox is explained by the increase in customer acquisition cost. The cost per install rose by 30% in 2025, reaching US$ 0.56, while downloads continued to fall for the second consecutive year. Faced with a restricted funnel and expensive acquisitions, it becomes more advantageous to acquire a studio already with a base of paying users than to compete for new users. Furthermore, the profile of the buyers is relevant: sovereign funds operate with a long-term horizon, without the pressure of immediate quarterly results. Thus, mobile has not stopped generating revenue, but rather has ceased to show growth, transforming it into an opportunity asset.

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