The mobile games market has declined this year for the first time since the beginning of the smartphone era.

Revenue is forecast to fall 6.4 per cent in 2022 to $137.6 billion, according to gaming analytics company Newzoo.

This is compared to a 7.3 per cent jump last year, and 2020’s spectacular 25.6 per cent growth, when lockdowns drove sharp uptake in gaming, to the point where mobile gaming not makes up over half of all gaming revenue.

This is an improvement from the first half of 2022, which saw a 9.6 per cent fall, according to Sensor Tower data.

Unity Software, Roblox, Electronic Arts and Take-Two all reported September financials that indicated the first half slump wasn’t going to ease during the back end of 2022.

Take-Two cut its annual forecast, in line with “a more cautious view of the current macroeconomic backdrop, particularly in mobile.”

John Riccitiello, CEO of Unity said, “the timing here is clear. The declines take place as the world’s banks increased interest rates and the spectre of recession was everywhere in the press. When we talk with our advertisers, the sense we get is clearly one of caution, and reticence to commit to the aggressive campaign spends.”

Candy Crush is the only game bucking trends.

Activision Blizzard’s mobile gaming studio King, maker of the evergreen classic saw its September earnings rise 8 per cent off the back of Candy Crush – which has been the top-grossing game franchise in the US App Store for 21 straight quarters.

“When there are thousands and thousands of games coming out every day, having a strong, trusted brand has always been extremely valuable to us,” said Todd Green, general manager of Microsoft.

Despite the slump, spending continues.

Take-Two recently shelled out A$16.4 billion for FarmVille creator Zynga, while Sony took over Savage Games and will fold it into its newly launched PlayStation Studios Mobile Division.

Netflix is also continuing to build its mobile gaming division, recently acquired three existing game studios: Boss Fight Entertainment, Night School Studio (Oxenfree) and Finland’s Next Games, and opening a separate in-house studio in Helsinki, Finland.