The decision follows years of heavy spending on virtual reality. Meta’s Reality Labs division, which builds VR headsets and smart glasses, has lost nearly $80 billion since 2020.

Last month, the company cut about 1,500 jobs in the unit, roughly 10% of its workforce. It also closed several VR game studios.

Supernatural, the VR fitness app Meta bought in 2023, will stop producing new content and move into maintenance mode.

Horizon Worlds launched in 2021 as a virtual reality social platform. It later expanded to the web and mobile. Now the company is narrowing its focus.

“To truly change the game and tap into a much larger market, we’re going all-in on mobile,” Samantha Ryan, vice president of Content at Reality Labs, wrote.

In shifting to mobile, Meta is placing Horizon Worlds in more direct competition with platforms such as Roblox and Fortnite, which already reach large audiences on phones.

Ryan said, “We’re in a strong position to deliver synchronous social games at scale, thanks to our unique ability to connect those games with billions of people on the world’s biggest social networks. You saw this strategy start to unfold in 2025, and now, it’s our main focus.”

At the same time, the company said it is not leaving virtual reality hardware. Ryan added, “We have a robust roadmap of future VR headsets that will be tailored to different audience segments as the market grows and matures.”

Meta said it will clearly separate its Quest VR platform from Horizon Worlds so each can grow independently. It plans to concentrate its VR focus on supporting third-party developers rather than expanding its own first-party studios.

According to the company, 86% of the time people spend in their VR headsets goes to third-party apps.

In 2025, Meta invested nearly $150 million in VR developer programmes, including its Start Developer Competition. It reported that in-app purchases on Quest rose 13% year on year.

Meta Horizon+ passed one million active subscribers in 2025 and now offers more than 100 games.

However, company executives admit the wider VR market has grown more slowly than expected. During last month’s earnings call, Chief Executive Mark Zuckerberg said, “It’s hard to imagine a world in several years where most glasses that people wear aren’t AI glasses.”

He added that sales of Meta’s glasses tripled over the past year and described them as “some of the fastest-growing consumer electronics in history.”

Internally, Meta has also adjusted how developers publish and sell content. It will remove individual worlds from the VR store shelves and separate worlds from the mobile app store listing.

The company said this should increase visibility for apps. It has introduced tools such as season passes, featured bundles and a “Deals” tab to improve sales and discovery.

On mobile, Meta reported growth in creator activity, noting that mobile-only worlds increased from zero to more than 2,000 in 2025. Four creators have earned more than $1 million in lifetime revenue, while nearly 100 earned six figures last year.

Meta is now putting most of its focus into building Horizon Worlds for phones while keeping its VR hardware plans in place. The company said it will do fewer projects at once and concentrate on areas it believes can grow faster.

It was the result of several innovations inside the app economy that finally lined up at once.

The $85 billion spent globally on non-game apps last year did not come from a surge in new users, because we see that downloads across mobile are largely reduced. 

But then, time spent has stabilised. So what changed was how people pay, and why they keep coming back.

Building habits

For years, while reach or downloads were used to describe how successful mobile apps were, games thrived because they could attract millions of casual players, monetise a small fraction of them, and repeat the cycle. Non-game apps didn’t match that efficiency before 2025.

That gap has now closed. Generative AI apps flipped the model and instead of focusing on new installs, they focused on becoming useful enough to open daily, sometimes dozens of times a day. 

The result is visible in Sensor Tower’s latest State of Mobile findings, which show global app spending rising 21% year-on-year. Sessions in AI apps crossed one trillion in 2025, growing faster than downloads. That tells us engagement is now the main engine.

This is a shift from scale-first to habit-first design.

Why AI assistants won, not just AI tools

Not all AI apps benefited equally. Assistants took over because they helped with multiple needs. Writing, search, coding help, image creation, planning, all in one place. That breadth reduced churn and increased willingness to pay.

ChatGPT’s $3.4 billion in in-app revenue is less important than how quickly it got there. No app has crossed $3 billion in annual consumer spending this fast. 

That speed is commendable because it shows that users accepted subscriptions and premium tiers without years of conditioning.

Others followed, with Google, Microsoft and X not just building similar features, but embedding assistants into daily workflows. Image and video generation became turning points, not side features. Once users could create, not just ask, time spent jumped.

Big tech’s return reshaped the field

Early AI growth came from smaller, fast-moving developers. That phase is over.

By 2025, OpenAI and DeepSeek controlled nearly half of all AI app downloads. Large technology firms expanded speedily, taking close to a third of the market. Together, they crowded out earlier competitors who lacked capital, distribution, or ecosystem access.

This concentration shows that AI on mobile is entering a maturity phase faster than previous app categories. Winners are pulling away early, leaving limited room for mid-tier challengers.

Mobile became the default AI gateway

One of the most underappreciated findings in the data is where AI usage happens.

More than half of AI assistant users in the United States now access these services only on mobile. A year earlier, that group barely existed. Phones are no longer secondary screens for AI, they are the main ones.

This has implications beyond apps. It explains why voice, camera input, and real-time image generation are advancing so quickly. Mobile limitations forced AI products to become faster, simpler, and more responsive.

Games did not collapse, they were overtaken

It is tempting to describe this as a loss for gaming. It isn’t.

Games still generate enormous revenue and attention. But their growth has slowed as user acquisition costs rose and playtime competed with social media, streaming, and now AI. Meanwhile, non-game apps learned how to monetise without friction.

Subscriptions, tiered access, and clear value exchanges worked. Users paid because they understood what they were getting back; saved time, better output, or creative control.

What this means for 2026

The mobile market has entered a monetisation-first era. Growth will not come from more downloads but from better use, clearer value, and products that are used in daily routines.

AI went beyond adding a new category to resetting expectations across the app ecosystem. Productivity, creativity, and even entertainment apps are now judged by how quickly they produce results, not how long they keep users scrolling.

According to the analysis commissioned by Carry1st, the African gaming market reached over $1.8 billion in 2024 (representing 12.4% YOY growth vs. 2023), outpacing global gaming growth sixfold (2.1% YOY growth).

Mobile gaming drove this growth, representing nearly 90% ($1.6 billion) of Africa’s $1.8 billion gaming market in 2024. 

Data reveals an estimated 349 million gamers across the African continent, of which 304 million were mobile gamers. The number of gamers grew by 32 million from 317 million in 2023, representing a 10% year-over-year (YoY) increase.

These latest figures mark the first time data released by Carry1st has encompassed the entire African continent rather than being limited to sub-Saharan Africa, as it was in previous years. In 2021, when Carry1st’s analysis focused on sub-Saharan Africa, the number of gamers was estimated at 186 million.

Africa’s Gaming Revolution

Africa’s gaming market is evolving rapidly, emerging as a major force in the global gaming landscape. In 2023, Newzoo and Carry1st projected that sub-Saharan Africa’s gaming market would reach $1 billion by 2024. 

This growth highlights Africa’s evolution from an emerging market to a major player in the global gaming industry. With widespread mobile adoption, increasing internet access, and innovative payment solutions driving expansion, Africa’s gaming market continues to grow. As global markets see slower growth, Africa’s rapid growth underlines the market’s enormous potential.

Key findings:

• The number of gamers in Africa increased by 32 million in 2024, from 317 million to 349 million, representing a 10% year-over-year (YoY) increase.
  • Mobile gamers made up 87% of the total player base, with 304 million playing on mobile.
• Africa’s gaming market grew six times faster than the global average, with global growth sitting at just 2.1% YoY in 2024
• The African gaming market grew from $1.6 billion in 2023 to $1.8 billion in 2024, representing a 12.4% year-over-year (YoY) increase.
  • Mobile gaming continues to dominate, accounting for $1.6 billion of the total $1.8 billion market, with a 14% YoY increase

• Closely examining countries in the region based on forecasts for 2024, the data reveals:
  • Egypt led with $368 million in revenue, followed by Nigeria ($300 million) and South Africa ($278 million).
  • Eritrea and Niger were the fastest-growing countries in gaming revenue, while Equatorial Guinea and Seychelles were the slowest-growing.

Carry1st CEO and Co-founder Cordel Robbin-Coker comments,  “Building on our previous collaborations with Newzoo, this new data illuminates the explosive growth of Africa’s gaming market. The dominance of mobile gaming, making up nearly 90% of the market, highlights the distinct path Africa is taking — leapfrogging traditional platforms. With such growth in players and spending, it’s clear that Africa is one of the few places to find secular growth in an industry that is otherwise showing signs of maturity.”

Michiel Buijsman, Principal Games Market Analyst at Newzoo, adds, “Africa’s gaming sector is growing rapidly and outpacing global trends, which signals that the continent is catching up and its growth cannot be overlooked. With a fast-growing mobile online population and 90% of its $1.8 billion market coming from mobile gaming, it’s clear where growth opportunities can be found.”

This comprehensive report offers a deep dive into the continent’s rapidly expanding role in the global gaming landscape, providing essential insights for developers, investors, policymakers, and enthusiasts.

Africa’s Gaming Scene Explodes

With revenues projected to surpass $1 billion in 2024, the African games industry is a force to be reckoned with.

Mobile gaming dominates the market, fueled by affordable smartphones and increasing internet access.

Innovative studios like Maliyo Games (Nigeria), Leti Arts (Ghana), and Kiro’o Games (Cameroon) are captivating players with culturally rich narratives and cutting-edge gameplay.

“The African games industry is breaking barriers,” says Hugo Obi, founder & CEO of Maliyo Games. “This report celebrates that resilience and creativity.”

Key Findings

• Mobile Dominance: Mobile gaming commands over 90% of the market. Nigeria alone saw explosive revenue growth, increasing by 454% from 2019 to
• Inspiring Successes: Maliyo Games partnered with Disney to create “Iwájú: Rising Chef.” Kiro’o Games became the first Black African studio to release a title on Xbox. Leti Arts continues to impress with “Sweave,” a celebration of African
• Emerging Opportunities: Esports, augmented reality, and educational games are gaining momentum, fueled by events like Africa Games Week and Lagos Games

Data-Driven Empowerment

This report provides detailed analyses of revenue trends, consumer preferences, and regional insights, empowering stakeholders with the data needed to drive investment and informed decision-making.

“The Africa Games Industry Report is a “must-read,” offering a blend of quantitative and qualitative analyses essential for understanding Africa’s gaming market. Packed with surveys, news, and insights, it’s an invaluable resource,” says Sho Sato, founder of Indie Game Incubator.

A Vision for the Future

“This report is a blueprint for the future, inspiring collaboration and growth,” says Hugo Obi.

Industry analyst Kristian Roberts adds, “Africa’s gaming industry is at a pivotal moment. This report is a must-read for anyone invested in its success.”

“The Africa Games Industry Report serves as a pivotal resource for the global gaming community, providing critical insights into the rapidly growing African gaming ecosystem. By highlighting key trends, challenges, and opportunities, the report enables international stakeholders to better understand the unique dynamics of this emerging market and fosters collaboration, innovation, and investment across borders.” Alexandra Pattison of Africa Games Week highlights the report’s role in shaping the future of this dynamic industry.

Get Involved

• Invest: Support African studios through funding and
• Collaborate: Participate in talent programs like GameUp
• Engage: Attend regional conferences and connect with the continent’s vibrant

It has gained significant popularity in Africa due to the widespread adoption of smartphones across the continent and its affordability in comparison to gaming consoles and PCs.

Mobile gaming is particularly popular in countries such as Nigeria, South Africa and Kenya. 

Thanks to this rapid development, African game developers are also now making strides in the gaming industry, creating unique and culturally relevant games that cater to their market.

There is a growing interest in promoting local game development talent and fostering a supportive ecosystem for game developers. 

But how has mobile gaming transformed over time? Read below to find out.

1. Early mobile games

In the early days of mobile gaming, simple games such as Snake and Tetris were popular on non-smart phones. However, these games had limited graphics and gameplay but they laid the foundation for the future of mobile gaming.

With the introduction of smartphones, app stores and touchscreens, casual games started gaining popularity.

Games such as Angry Birds and Candy Crush Saga became a massive hit with their addictive gameplay, easy-to-learn mechanics and colourful graphics.

These casual games opened up gaming to a wider audience, including people who were not traditionally considered gamers.

2. Freemium and in-app purchases

The freemium model, where games such as Homescapes are free to download and play but offer in-app purchases for additional content, became prevalent in app games.

This business model enables game developers to generate revenue through micro transactions, unlocking new levels, cosmetic items and virtual goods.

3. Building a community of gamers

As smartphones became more powerful and connected, multiplayer and social gaming became a significant trend in app games. Games such as Clash of Clans and Fishdom introduced multiplayer gameplay, whereby players could compete or collaborate with others online.

Social features such as leader boards, achievements and friend invites also became integral to many app games, thereby fostering a sense of community and competition among players.

4. eSports and competitive mobile gaming

eSports, or competitive gaming, has grown tremendously in recent years. Mobile games have also become a significant part of the eSports ecosystem.

Games such as PUBG Mobile, Call of Duty: Mobile and Mobile Legends: Bang Bang have gained massive popularity as eSports titles, with professional tournaments, sponsorships and significant prize pools.

Competitive mobile gaming has become a lucrative industry, attracting professional players and creating a competitive gaming ecosystem.

5. Augmented Reality (AR), Virtual Reality (VR) and gamification

With the advent of AR and VR technologies, app games have also taken gaming to a whole new level of immersion.

Players can now interact with virtual objects in the real world using their smartphones, which provides a new dimension of gaming experience.

When you think of how else app games have evolved, consider how games have evolved beyond traditional entertainment and have found applications in other areas such as health and fitness.

Gamification has been used to encourage physical activity, promote mental well-being and improve overall health.

This is achieved when gaming elements are combined with health and fitness goals, making gaming a tool for personal growth and self-improvement.

In conclusion, the evolution of mobile games has been driven by advancements in technology, changing consumer preferences and innovative business models. From simple mobile games to immersive AR/VR experiences and competitive eSports the app gaming industry continues to evolve rapidly, shaping the future of gaming and entertainment.

For more on the types of games you can discover, head over to AppGallery and explore various games, that each provide you with an exhilarating factor to your gameplay.

Furthermore, mobile internet users will reach 475 million and 4G connections will increase from approximately 9% to around 27% between 2020 and 2025.

This creates massive opportunities for mobile game developers to reach new audiences across the continent.

With more than 21 million smartphones being shipped per quarter to Africa, the market has shown the potential for engaging with consumers using mobile devices as the platform of choice.

This is especially true when it comes to finding alternative forms of entertainment. Thus, for its part, mobile gaming provides an affordable and accessible alternative.

Another benefit of the mobile gaming environment is that the main payment method is Direct Carrier Billing (DCB) which allows the user to make in app payments using their airtime.

With almost 60% of the world’s population of two billion unbanked people living in Africa, the convenience, security, and user-friendliness of carrier billing just makes more sense.

Between 2015 and 2021, the number of game consumers in sub-Sahara Africa increased by approximately 144%. Of the 177 million gamers in the region, a massive 95% are using mobile devices as their platform of choice.

Gaming benefits

Of course, mobile gaming is a great form of entertainment and provides wonderful escapism however there are many other benefits to consider.

Playing mobile games help children test their strategic thinking and awareness of their environment. It can improve memory, spatial awareness and problem-solving. For instance, ‘Train your Brain’, available on the AppGallery is an addictive title containing a complete collection of games that will help develop your memory skills whilst having fun.

Memory training is perfect for all ages and this game provides   different challenges to test your capacity of retention and memory in the short and long term. Each game has different levels so you can practice gradually.

There’s also the creativity aspect of gaming to think of. Mobile games can give flight to your imagination. ‘Sand Drawing’  is a fun app which lets you draw on realistic sand. It’s the ultimate drawing pad where you can just unwind and relax.

Whoever said that games provide no educational benefits haven’t explored how the environment can test children’s knowledge of maths, science, or other areas of interest. This not only enhances learning but also makes it a fun experience for your children to stay engaged in a particular subject.

‘Educational games for kids’ is a great example of this. Your kids will learn alphabet, numbers, colours, shapes, days of the week, months of the year, planets of our solar system, space and much more. Features include sounds of letters, animal sounds for babies, fun games for pre-schoolers, shapes for babies, the list just goes on.

Mobile gaming is booming across the African continent. Choose the platform that gives you the most opportunities whether you are a developer or a gamer.