How much does it cost to create a mobile game?
How much does it cost to create a simple hybrid-casual game? Can a mobile game be developed on a minimal budget? What factors influence the cost of mobile game development? Why do some games cost only a few thousand dollars while others require millions? Is it better to develop a game alone or hire a team? What expenses should a beginner game developer consider? Does the monetization model impact development costs? How much does it cost to hire a programmer, artist, or game designer? What unexpected expenses can arise during mobile game development? You will find answers to all these questions in this post.
For years, mobile games have dominated the electronic entertainment market, surpassing consoles and personal computers in popularity. According to data from Statista, in 2024, the global mobile gaming market was valued at over $92 billion, while the console gaming market reached $52 billion, and PC gaming stood at $43 billion.
The rapid development of this industry has attracted large corporations such as Blizzard, Warner Bros. Games, and Nintendo, which have brought their biggest franchises to smartphones. The market offers enormous opportunities but also presents high demands. Competition is immense, and the App Store and Google Play are flooded with new titles, so success requires not only a good idea but also adequate financial resources and a well-thought-out strategy.
The budget for mobile game development depends on many factors—the size of the team, the chosen genre, the monetization model, the technology, and the marketing strategy. Some titles, especially simple hyper-casual games, can be developed for just a few thousand dollars, but more complex projects, such as hybrid-casual or mid-core games, require investments in the hundreds of thousands.
In this article, we will analyze the key costs associated with mobile game development—from planning through development to promotion and maintenance. We will also examine the most commonly used business models and the challenges that independent developers face when trying to break into this highly competitive market.
Different Monetization Models in Mobile Games
One of the key aspects of planning a mobile game is choosing a monetization model. It has a direct impact on production costs, marketing strategy, and potential revenue. Here are two of the most common models
Free-to-Play (F2P)
The Free-to-Play model is currently the most popular way to monetize mobile games. The game is available for free, significantly lowering the entry barrier for new players, but generates revenue through microtransactions. Players can buy premium currency, rare items, characters, or additional features. Examples of F2P games include “Genshin Impact” and “Dragon Ball Z: Dokkan Battle.”
An additional source of revenue in F2P games is advertising. Developers can implement interstitial ads (intrusive ads), rewarded video ads, banners, or playable ads, offering players, for example, extra lives or rewards in exchange for watching them.
However, implementing effective monetization in the F2P model requires advanced market analysis and well-thought-out game economy design. It is necessary to balance progression and special offers to maximize revenue without putting excessive pressure on the player.
Paid Games
Premium games follow the traditional model, where players pay a one-time fee for full access to the game content. Unlike F2P games, monetization is simpler because it does not rely on microtransactions or long-term player engagement mechanics.
A great example is Kairosoft games such as “Game Dev Story” or “Pocket Academy,” which cost around $5 and offer a complete experience without additional charges.
If you are a mobile game developer, you have likely heard of “Stardew Valley,” a game created by a single developer, Eric Barone. He worked on every aspect of the game alone for four years, and after its release in 2016, it achieved millions of sales.
However, premium games have their own challenges. To convince players to pay for a product, developers must ensure:
- High-quality gameplay at launch
- Intensive marketing – this model often relies on reviews, recommendations, and organic promotion, as paid user acquisition (Google Ads, Facebook Ads) can be costly and difficult to recoup.
Despite growing competition, mobile games still generate over 50% of total video game market revenue. The Free-to-Play model dominates, but there is still a niche for well-designed premium games.
To succeed, developers must not only create an attractive product but also ensure effective monetization and thoughtful promotion. The market is becoming increasingly crowded, so choosing the right business model is crucial for a game’s profitability.
Factors influencing the cost of mobile game development
The cost of developing a mobile game depends on many factors, but three are crucial: game type, target platform, and business model. Each of these aspects affects not only the production budget but also development time and monetization strategy.
Game Type
The complexity of the game has the greatest impact on production costs. The more advanced the mechanics and graphics, the larger the budget required. Below is a classification of mobile games based on complexity and estimated production costs.
Hyper-Casual Games & Idle Games & Hybrid-Casual Games ($5,000 – $50,000+)
These are simple games with minimalist mechanics, primarily designed for ad monetization. Development usually takes a few weeks, and costs are relatively low.
Casual and Mid-Core Games & Hybrid-Casual Games ($50,000 – $500,000+)
This category includes both simple casual games and more complex mid-core games with progression systems and microtransaction-based monetization. These productions often require a larger team and a longer development cycle.
High-End Games (Mid-Core and Hardcore) ($500,000 – $5,000,000+)
These are advanced productions with high-quality graphics, often featuring multiplayer modes or complex economies. They require significant financial investments for servers, continuous updates, and optimizing Free-to-Play mechanics.
AAA-Like Games ($5,000,000+)
In the mobile market, the term “AAA” is not commonly used in the traditional sense, but some productions reach budgets comparable to console and PC games. These games feature open worlds, high-quality graphics, and full live-service support. Costs include not only production but also long-term maintenance, servers, and marketing, which often exceeds the development budget itself.
Target Platform
The choice of platform impacts the production budget but not as significantly as other factors. There is a common belief that developing games for iOS is more expensive than for Android, but in reality, development costs are comparable.
However, Android requires additional optimization efforts due to the highly fragmented device market, necessitating testing on multiple models with different specifications.
The most cost-effective solution is to develop a game for both platforms simultaneously using engines such as Unity, Unreal Engine, or Godot, which can reduce costs by 40-50% compared to separate development for each platform.
Business Model
The business model directly impacts the cost of production and monetization strategy. Choosing the right model determines whether the game requires long-term support, how financial flows will be structured, and what player engagement mechanisms need to be implemented.
Free-to-Play (F2P) with microtransactions
The most popular model in the mobile market, where the game is free to play, and revenue comes from the purchase of premium currency, cosmetic items, boosts, or seasonal passes. Games of this type require an advanced progression system and continuous monetization optimization, which significantly increases the budget for live operations and analytics.
Examples: My Perfect Hotel, Clash Royale, Genshin Impact, Call of Duty: Mobile
Freemium (F2P with a Premium Option)
The game is available for free, but some content can be unlocked through a one-time payment or subscription. This model allows for limiting aggressive monetization mechanics and is often used in puzzle or simulation games.
Subscription (Games-as-a-Service, GaaS)
An increasingly popular model in which players pay a monthly fee for access to premium content. This provides a more stable revenue stream than microtransactions but requires regular updates and new content delivery.
Example: Apple Arcade
Ads
A model commonly used in hyper-casual and casual games. Revenue comes from video ads, banners, and interstitial ads displayed during gameplay. This is a popular solution for smaller developers, as it does not require building an advanced in-game economy.
Examples: Helix Jump, Paper.io
Hybrid Monetization
Most mobile games today use a hybrid monetization model, combining multiple revenue sources such as microtransactions, ads, and subscriptions. This allows developers to cater to different types of players—both those who prefer free gameplay and those willing to pay for additional features.
Game production stage and associated costs
The production of a mobile game is the most time-consuming and expensive phase of the entire process. It requires proper planning and division of work to maximize the chances of market success. There are several key stages that must be completed before the game is released.
Phase One – Pre-Production
Pre-production is a crucial stage in mobile game development that lays the foundation and minimizes the risk of errors in later development phases. During this time, the game’s genre, core mechanics, monetization model, target audience, and underlying technology are defined. Well-planned pre-production significantly increases the chances of market success and helps optimize the production budget.
Game Design Document (GDD) – What it is and why it matters?
One of the most important elements of pre-production is the creation of the Game Design Document (GDD), a detailed game design guide. The GDD serves as a comprehensive reference document that outlines all key aspects of the game, including mechanics, technical structure, and visual direction. It ensures that the development team maintains a cohesive vision and avoids misunderstandings during later production stages.
A well-prepared GDD includes:
1. General game description
- Working title of the game
- Genre (e.g., idle, RPG, puzzle, multiplayer)
- Target audience (casual, mid-core, hardcore)
- Short storyline summary (if the game has a narrative)
2. Core Loop and gameplay mechanics
- Primary gameplay loop (e.g., in idle games: collecting resources → upgrading them → unlocking new elements)
- Player controls and interactions
- Progression mechanics – levels, missions, reward systems
- Social features (e.g., leaderboards, clans, PvP)
3. Monetization model
- Will the game be free-to-play or premium?
- What monetization methods will be implemented? (microtransactions, ads, subscriptions, battle pass)
- How will the game economy encourage players to spend money?
- What items or currencies will be available in the game?
4. Player progression and retention systems
- How does character progression or the upgrade system work?
- What engagement mechanisms will keep players coming back? (e.g., daily missions, login rewards)
- What are the key retention points, i.e., moments when players are most likely to return to the game?
5. UI/UX and Visual Style
- Description of the user interface and navigation
- Art style – will the game be 2D or 3D?
- Concept art for characters, environments, and animations
6. Technology and game engine
- What tools and engines will be used? (e.g., Unity, Unreal Engine)
- What will the hardware requirements be? (e.g., will the game run on older devices?)
- Does the game require servers and backend infrastructure?
The GDD is a living document, meaning it can be updated throughout development as new needs and changes arise. However, its primary function is to maintain a consistent game vision and enable efficient teamwork, whether for a small indie team or a large studio.
Competitor analysis and game deconstruction
Before full-scale production begins, it is essential to analyze competing games in the market. Competitor analysis helps developers understand why some titles succeed while others fail, allowing them to avoid common mistakes and create a game with strong market potential.
What to analyze in competitor games?
- Gameplay mechanics – What core loops dominate the genre, and what makes players return to the game?
- Monetization models – What revenue strategies do competitors use (microtransactions, subscriptions, ads), and which generate the highest revenue?
- Retention and player engagement – What mechanics successfully keep users playing for long periods?
- Game economy balance – Where are the optimal progression points, and when do players most frequently make purchases?
One of the most effective ways to analyze competitors is game deconstruction, a deep dive into the structure and mechanics of a specific game. This process involves testing competing games, analyzing their gameplay loops, reward systems, and monetization methods. A useful tool for game deconstruction is GameRefinery, which provides insights into market trends and competitor strategies.
If you want to check how much games earn and how many downloads they have on Google Play or the App Store, it’s worth using tools like AppMagic (clicking the link gives you access to a 3-day free trial). These tools allow you to track download statistics, revenue, and growth trends for competing titles.
AppMagic also enables monetization metric analysis, such as revenue per download, which can help predict which monetization strategies work best in a given market segment.
Another method of market analysis is monitoring user reviews in the App Store and Google Play. Player feedback can provide valuable insights into what they enjoy and what frustrates them. This helps developers better tailor their game to market expectations and avoid repeating competitors’ mistakes.
How long does pre-production take, and what are the costs?
The duration of pre-production depends on the scale of the project. For simple casual games, this phase can last a few weeks to two months. In contrast, for larger projects, such as multiplayer games, it can take several months or even years.
The cost of pre-production also varies.
- In small indie projects, pre-production can be completed within a budget of a few thousand dollars, especially if only one or two developers handle the work.
- In larger studios, where teams of designers, artists, and analysts are involved, monthly costs can reach hundreds of thousands of dollars.
Key Elements of Pre-Production:
- Market research and competitor analysis
- Prototyping and testing core mechanics
- Concept art and early UI versions
- Development of a detailed Game Design Document
While pre-production is not as costly as full production, its importance is critical. A well-executed pre-production phase helps avoid expensive mistakes and provides a strong foundation for further game development.
Pre-production is the most important phase in mobile game development—it determines whether a game will succeed or fail. Creating a Game Design Document, analyzing competitors, and testing mechanics allows developers to prepare better for full-scale production and optimize their budget.
Before the game moves to the development team, it should have a clearly defined core loop, monetization strategy, and progression system. This ensures that later development runs smoothly and that the final product has a higher chance of success in the highly competitive mobile gaming market.
Phase Two – Production
The production phase is the longest and most expensive stage of mobile game development. At this stage, all the initial ideas and plans from pre-production take real shape. Depending on the complexity of the game, project scope, and team experience, the production phase can last from a few months to several years.
During this phase, all core elements of the game—mechanics, graphics, user interface (UI), code, and audio—must be developed to meet both technical and gameplay expectations. Developers also need to optimize performance, balance the game, and conduct early internal testing to identify bugs and shortcomings.
Game Mechanics and UX/UI Design
Game mechanics design is one of the most crucial aspects of production. The game designer, along with the development team, transforms theoretical concepts into functional features.
All mechanics—from basic controls to complex progression and in-game economy systems—must be carefully designed and tested to provide a smooth and engaging player experience.
A critical role is also played by UX/UI design (user experience and user interface design). Navigation in mobile games must be:
- Intuitive
- Clear
- Optimized for touchscreens
A poorly designed UX/UI can ruin the entire player experience. Proper button placement, clear menus, and smooth animations significantly impact player retention and overall enjoyment.
Key Challenges at This Stage:
- How to ensure smooth controls in a game that requires precision?
- How to design the interface so that it’s intuitive even for new players?
- How to adapt the UI to different screen resolutions and device formats?
A well-designed UX/UI can make or break a game. Even the best-designed mechanics can be negatively received if players struggle with navigation and usability.
Creating 2D/3D Graphics, Animations, and Visual Effects
The visual design of a game is often the first thing that shapes a player’s impression. Depending on the art style and game type, production may require 2D illustrations and animations or advanced 3D modeling and rendering.
Casual and hyper-casual games typically rely on simple 2D graphics, which allow for faster and more cost-effectiveproduction. In contrast, more complex games—such as RPGs, strategy games, or racing games—require high-quality 3D models, which are more resource-intensive and expensive to produce.
Graphic Production Includes:
- Character design and animations
- Game environment creation – backgrounds, maps, objects
- Special effects – explosions, motion blur, dynamic lighting
Character and object animations must be realistic and fluid while being optimized for performance to ensure smooth gameplay on various devices.
Game Programming on a Selected Engine
Coding is the foundation of the entire production process—it ensures that mechanics, animations, interactions, and all game systems function correctly. The choice of game engine determines how the game will be implemented and how it will be optimized.
Most Commonly Used Game Engines for Mobile Game Development:
- Unity – The most popular engine for mobile games, supporting both 2D and 3D, with built-in solutions for monetization and performance optimization.
- Unreal Engine – Mainly used for more advanced 3D games, such as battle royale and RPGs.
- Godot – A free and open-source engine, increasingly chosen by independent developers.
Key Aspects of Coding:
- Player controls and interactions – touch controls, object-dragging systems
- Game logic – physics rules, AI systems for enemies, resource management
- Progression system and game economy – character leveling, unlocking new elements, balancing in-game currencies
Well-written code must be not only functional but also optimized for performance, ensuring that the game runs smoothly, even on older devices.
Adding Sounds and Music
The audio layer of a game is often underrated, but it plays a key role in creating immersion. Music, sound effects, and character voice-overs can significantly enhance the player’s experience.
Properly designed sound effects can impact player perception—for example:
- Subtle interface sounds improve the user experience.
- Dynamic music during action sequences increases tension and engagement.
The duration of the production stage depends on the scale of the project. Simple casual games can be developed in 2 to 6 months, while more complex titles require at least 12 to 24 months of work.
The costs of mobile game production vary greatly and depend on many factors, such as the level of complexity of the game, quality of graphics, number of features, team size, and chosen technology. Depending on the scale of the project, the budget can range from a few thousand dollars to even tens of millions.
The cheapest games to produce are simple indie games, which are often created by small teams or even individual developers. In the case of games based on ready-made assets from the Asset Store and with relatively simple gameplay, costs can range between 5,000 and 50,000 dollars.
Such productions are usually simple mobile games that do not require complex graphics or extensive server systems. These are often games monetized through advertisements, which allows for a quick return on investment. Developers who can program and use free or low-cost assets can reduce costs, but they still need to account for expenses related to testing and marketing if they want their game to have a chance at success.
At a higher level are mid-tier productions, such as hybridcasual games, which combine the accessibility of hyper-casual games with more advanced mechanics and longer player engagement. The costs of such projects can range up to several hundred thousand dollars, as they require more refined graphics, better animation, and a more advanced in-game economy. In this type of production, A/B testing and monetization optimization are crucial, as they determine the long-term profitability of the game. Hybridcasual games also require investment in user acquisition, which can significantly increase the total production and promotion costs.
The most expensive games are multiplayer, battle royale, and MMORPG titles, which require enormous financial investments, especially if they are to be supported on a global scale. Such productions require extensive servers, advanced networking mechanics, support for thousands of simultaneous players, and regular updates. The budget for creating such a game can reach several million dollars, and for the largest titles, even exceed 50 million dollars. Games of this type, such as Call of Duty: Mobile, PUBG Mobile, or Diablo Immortal, require the involvement of large development teams, artists, animators, network programmers, and data analysts, which significantly increases production and maintenance costs. Additionally, for large online games, expenses for server infrastructure and customer support can reach millions of dollars annually.
The final cost of mobile game production depends not only on its scale but also on the adopted business strategy. Even a relatively inexpensive project may require substantial marketing and user acquisition investments to stand out in a crowded market. On the other hand, a well-planned and optimized production can achieve success even with a limited budget.
The production phase is the longest and most demanding stage of mobile game development. During this time, all elements—from code to graphics to sound—must be refined and optimized. Choosing the right technologies and tools is crucial to ensuring the efficient execution of the project. The ultimate success of the game depends not only on its quality but also on the team’s effective collaboration and a well-thought-out production and budget optimization strategy.
Phase Three – Testing
Testing a mobile game is a crucial stage of production that ensures stability, performance, and a good user experience. This process includes Quality Assurance (QA), which involves identifying bugs and verifying the correctness of game mechanics, performance testing to check smooth operation on various devices, and market testing (soft launch) to analyze retention and monetization before the global release.
Mobile games must run smoothly on both flagship and older smartphones, so testing includes optimizing memory usage, battery consumption, and graphical performance. In the case of multiplayer games, an additional challenge is server stability and network connection quality.
Soft launch is a commonly used strategy that allows developers to test the game in selected markets and collect data on player behavior. This helps implement necessary improvements before the full release. A technical soft launch most often takes place in the Philippines because players there speak fluent English. From my own experience, I know that installations from the Philippines are no longer as cheap as they were a few years ago.
The duration of testing depends on the scale of the project—simple games can be tested within a few weeks, while larger productions require months of intensive testing. The costs of this phase range from $10,000 to $100,000, depending on the number of tested devices and the complexity of the game. Thorough testing helps avoid negative reviews and technical issues that could discourage players immediately after launch.
Phase Four – Game Launch and User Acquisition
The launch of a mobile game is not just about making it available in the Google Play and App Store but also a key phase of the marketing strategy and user acquisition (UA). The success of a game largely depends on how well it is prepared for release and what promotional efforts are made to attract the first players.
Soft Launch – Testing before global release
Before a game is officially released in all markets, developers often opt for a soft launch, which is a limited release in selected countries such as Canada, Australia, the Philippines (technical test), or Scandinavian countries. These regions closely reflect the behavior of players in the United States while allowing developers to test the game in a less competitive environment. Players in these regions also speak fluent English.
A soft launch provides an opportunity to evaluate player retention, monetization effectiveness, and potential bugs that could negatively impact the game’s reception upon full release. This allows developers to analyze:
- How many users return to the game after the first day, first week, and first month
- How well the microtransaction system works and whether players are willing to spend money
- Whether there are any critical technical issues that need to be fixed
- What reviews players leave in the store and whether changes should be implemented based on their feedback
Soft Launch is Divided Into Several Stages:
- Technical soft launch (testing game bugs)
- Retention soft launch
- Monetization soft launch
Many games that initially struggled with player retention or monetization were significantly optimized after soft launch analysis and achieved much greater success after the global release.
App Store Optimization (ASO) – Increasing game visibility
Simply having a game available in the app store does not guarantee downloads. To increase its visibility and attract organic users, App Store Optimization (ASO) is necessary. ASO is the process of optimizing an app’s store page to increase installations by improving search rankings and conversion rates.
Key App Store Optimization elements:
- Game title and description – Using relevant keywords to improve the app’s ranking in search results
- Icon and promotional materials – Attractive visuals that grab users’ attention and increase conversion rates
- Screenshots and trailers – Presenting key game mechanics in an engaging way to convince users to download the app
- User ratings and reviews – A high number of positive reviews improves rankings and builds trust among potential players
Well-optimized App Store Optimization helps reduce user acquisition costs (CPI) and increases organic downloads, which in the long term can significantly lower marketing expenses. Eye-catching screenshots and compelling visuals are essential before launching paid promotions for the game.
User Acquisition – Attracting Users
The game’s release is just the beginning – to succeed, active user acquisition through various marketing channels is necessary. User Acquisition (UA) refers to paid and organic strategies for acquiring players to increase downloads and retention.
The most opular User Acquisition methods:
- Video and display ads – Promoting the game through ad networks such as Google Ads, Meta Ads (Facebook, Instagram), Unity Ads, Applovin, IronSource, and TikTok Ads
- Influencer marketing – Collaborating with gaming content creators on YouTube and TikTok to reach a large target audience
- Cross-promotion – Advertising the game in other apps from the same publisher
User Acquisition costs can greatly exceed the actual game production budget. The average CPI (cost per install) for mobile games varies based on region, platform, and game genre.
- In the United States, the cost of acquiring a user can range from $1 to $10 per install
- In more competitive categories like casual games or strategy games, CPI can be even higher
This is why testing UA campaigns is crucial to optimize spending and find the most effective user acquisition channels.
Publication costs and marketing expenses
Registering as a developer and obtaining the ability to publish games in mobile stores involves small fees:
- Google Play – a one-time fee of 25 dollars
- App Store – an annual fee of 99 dollars
However, the real costs begin only after the release—marketing expenses can significantly exceed the production budget of the game itself. Developers often allocate at least 50-70% of their budget to User Acquisition and promotion, as without a proper marketing strategy, a game can simply disappear among thousands of other apps available in stores.
Publishing a mobile game is not just about uploading it to a store but also a complex process that includes soft launch, ASO optimization, and a User Acquisition strategy. To achieve success, developers must invest in marketing, test the effectiveness of their actions, and continuously optimize user acquisition methods. Without effective promotion, even a well-designed game may not attract enough players, so it is crucial to combine a high-quality product with a well-planned marketing strategy.
The production of a mobile game is a process that requires careful planning and budget optimization. A key elements the analysis of competition and game deconstruction, which allows developers to better tailor mechanics and monetization strategies.
Each stage—from pre-production, through testing, to publication—involves costs, which, depending on the scale of the project, can range from tens of thousands to several million dollars.
A well-executed production and testing process increases the chances of market success, but in an increasingly competitive mobile market, an effective marketing strategy and monetization optimization are equally crucial.
The team required to create a game and their salaries
The cost of hiring a team to develop a mobile game depends on location, experience of specialists, and whether the team consists of full-time employees or freelancers. Salaries vary significantly by region—employees in the USA and Western Europe earn much more than specialists in Eastern Europe or Asia.
What roles are needed to create a mobile game?
Depending on the size and complexity of the project, the team can range from a few to several dozen people. Below are the key positions and their estimated salaries in three regions: the USA, Poland, and India.
Cost of salaries for a mobile game development team
Position | United States (monthly) | Poland (monthly) | India (monthly) |
---|---|---|---|
Game Producer | 6 000 – 12 000 USD | 2 000 – 5 000 USD | 1 000 – 3 000 USD |
Programmer (Unity, Unreal) | 7 000 – 15 000 USD | 2 000 – 7 000 USD | 1 000 – 4 000 USD |
Game Designer / Game Economy Designer | 5 000 – 10 000 USD | 2 000 – 6 000 USD | 1 000 – 3 500 USD |
UI/UX Designer | 6 000 – 12 000 USD | 2 000 – 6 000 USD | 1 000 – 3 500 USD |
2D/3D Artist | 5 000 – 12 000 USD | 1 500 – 7 000 USD | 1 000 – 4 000 USD |
Animator | 5 000 – 10 000 USD | 2 000 – 6 000 USD | 1 000 – 3 500 USD |
Music Producer | 3 000 – 8 000 USD | 1 000 – 4 000 USD | 800 – 2 500 USD |
Project Manager | 6 000 – 12 000 USD | 2 000 – 7 000 USD | 1 000 – 4 000 USD |
QA Tester | 3 000 – 7 000 USD | 1 000 – 3 500 USD | 800 – 2 000 USD |
Live Ops Manager | 6 000 – 12 000 USD | 1 500 – 7 000 USD | 1 000 – 4 000 USD |
Data source: Industry reports and average rates from platforms such as Glassdoor, PayScale, NoFluffJobs, and IndieGameBusiness.
Should you hire a team or work with freelancers?
The decision to hire a full-time team or use freelancers has a significant impact on production costs, workflow organization, and the final product’s quality. Each option has its advantages and limitations, and the final choice should depend on the project’s scale, complexity, and available budget.
Hiring a full-time team – stability and greater control
A full-time team provides continuity of work and better organization, especially for larger projects that require long-term commitment.
Advantages of hiring a full-time team:
- Stability and engagement – employees are fully dedicated to the project and more invested in its success.
- Better communication and integration – working in the same environment (an office or a well-organized remote team) facilitates information exchange and quick decision-making.
- Quality and iterative project improvement – in-house teams typically pay more attention to detail and the long-term quality of the game.
- Consistency in artistic and technical vision – it is easier to ensure that all game elements align with the original concept and aesthetic.
Disadvantages of hiring a full-time team:
- High costs – full-time employment requires paying salaries, taxes, insurance, and benefits. In high-cost countries like the United States or Germany, experienced specialists’ salaries can reach several thousand dollars per month per person.
- Difficulty in scaling the team – hiring new employees takes time and requires recruitment efforts, while letting people go after the project ends can be costly.
- Fixed operational costs – employees receive salaries regardless of whether the game is in an intensive production phase or a period of stagnation.
- Building a local office team in one city can be very challenging.
Working with freelancers – flexibility and lower costs
Hiring freelancers is often a cheaper and more flexible option, especially for smaller indie teams that want to avoid the high costs of full-time employment.
Advantages of working with freelancers:
- Lower costs – payment is made only for completed work, without additional expenses related to full-time employment. In many cases, rates can be negotiated.
- Flexibility – freelancers can be easily hired for specific tasks, such as creating graphics, writing a script, or programming a particular feature.
- Access to a global talent pool – platforms like Upwork and Fiverr allow developers to find specialists worldwide and match their skills to project needs.
Disadvantages of working with freelancers:
- Lack of continuity – freelancers may have limited availability, making long-term planning and game development more challenging.
- Less control over quality and deadlines – freelancers often work on multiple projects simultaneously, which can lead to delays. Their ability to focus on a single project may be limited if they are juggling multiple assignments.
- Risk of inconsistency in visual and technical aspects – when a game is created by multiple freelancers, maintaining a uniform artistic style and coherent code structure can be difficult.
Cost of hiring a team vs. freelancers
The cost of hiring a development team varies based on location and the cooperation model. The most expensive specialists work in the USA, Canada, and Western Europe, where senior-level salaries can reach $10,000–15,000 per month. Meanwhile, in Eastern Europe (Ukraine, Belarus), Latin America, and Asia, high-quality specialists can be found in the range of $2,000–5,000 per month.
Hiring freelancers allows for greater budget control, but their rates also depend on experience and location. The cost of a single task (such as creating a 3D model or programming a specific feature) can range from a few hundred to several thousand dollars.
What should you choose?
For small indie games with limited budgets and no need for long-term support, hiring freelancers may be the best solution. This allows developers to control expenses and adjust the team size flexibly based on current needs.
However, if the game is more complex, requires long-term development and continuous support, it is better to build an in-house team or hire a software house. This ensures project consistency, stable production, and better quality control over the final product.
The final choice should consider project scale, available budget, and long-term needs. In many cases, the optimal solution is a hybrid collaboration model, where a core development team works full-time while freelancers are hired for specific tasks, such as creating graphics or sound.
Pitfalls and unexpected costs
Developing mobile games is a complex process in which even the best-prepared budget can be exceeded due to unforeseen expenses. Many developers focus on core costs such as team salaries, software licenses, or marketing campaigns but fail to consider additional costs that may arise during production and after the game’s release.
One of the most common problems is a change in the game concept after production has already begun. It often happens that after creating the first prototypes, developers realize that the mechanics do not work as expected, or user tests indicate the need for significant changes. This can mean additional months of work for programmers, artists, and designers, significantly increasing the project’s costs. In extreme cases, entire sections of the game may need to be redesigned, leading to major delays and unexpected expenses.
Server infrastructure costs are another element that is often underestimated. In online games, especially those with multiplayer modes, stable servers are needed to handle a growing number of players. Initially, expenses may be low, but if the game becomes successful, maintenance costs can rise sharply. Sudden spikes in popularity can lead to performance issues, forcing immediate investments in better servers or scaling systems. If servers are not properly prepared, the game may experience lag and technical problems, quickly discouraging players and negatively impacting reviews.
Another critical challenge is ensuring game compatibility across different devices. The mobile gaming market includes thousands of smartphone and tablet models, each with different technical specifications. A game that runs smoothly on flagship models may suffer significant performance issues on older devices. Optimization for a wide range of hardware requires additional testing, code adjustments, and graphical modifications, generating additional costs. Failure to adapt the game to popular but weaker devices can limit the player base and reduce potential revenue.
Updates required due to new operating system versions are another hidden cost that is often overlooked. Apple and Google regularly update iOS and Android, sometimes requiring code adjustments to prevent bugs or compatibility issues. Changes in app store policies, such as Apple’s ATT privacy requirements, may force additional development work and adjustments to monetization systems. Failure to adapt the game to new standards may result in its removal from the store or negative user experiences, leading to a drop in revenue.
Another aspect that can generate unexpected costs is optimizing and testing the game for different markets. Launching a game in a new market often requires not only content translation but also adjustments to mechanics, in-game pricing, and monetization strategies. For example, players in Japan may have different expectations than users in the United States or Europe, which may require changes in game balance, user interface, or reward distribution.
Customer support and technical assistance are expenses that often increase after a game is released, especially in online productions. Many developers do not account for the need to hire a support team that will handle player inquiries, troubleshoot technical issues, or moderate the game’s community. Lack of proper support can lead to negative reviews and loss of users, ultimately lowering revenue.
Additionally, it is important to consider marketing and user acquisition costs, which can far exceed the budget for game production itself. Many creators assume that simply making a good game is enough and that users will find it on their own. In reality, without an effective promotional campaign, a game may go unnoticed. The cost per install (CPI) continues to rise, especially in competitive game categories, meaning that the marketing budget often needs to be increased to reach the necessary number of downloads and maintain the financial stability of the project.
In summary, mobile game development comes with many hidden costs that can significantly impact the budget and overall project success. Before starting production, it is essential to set aside additional financial reserves for unexpected expenses such as optimization, technical support, or server scaling. Failing to prepare for these challenges can lead to delays, technical issues, and, in extreme cases, even market failure.
Is it possible to develop a mobile game on a low budget?
Developing a mobile game on a low budget is possible, but it requires careful planning, cost minimization, and the use of existing solutions. Several key strategies can help reduce expenses:
- Using free tools – Unity Personal, Godot, Blender, and GIMP allow game development without licensing fees.
- Utilizing pre-made assets from the Unity Asset Store – many graphics, 3D models, and sound effects can be found in free or affordable libraries such as Unity Asset Store, OpenGameArt, or Itch.io.
- Working in a small team or solo development – instead of hiring a large group of specialists, consider collaborating with freelancers or developing skills independently.
- Publishing initially on a single platform – launching a game only on Android can reduce testing costs.
- Simple monetization model – ads and microtransactions are easier to implement than complex subscription-based payment systems.
Developing mobile games requires mindful budget management and adapting production to real financial possibilities. A well-planned project allows for a successful market entry even with limited resources.
Challenges in the mobile gaming market
The mobile gaming market is growing rapidly but is becoming increasingly demanding each year. Developers must deal with rising competition, changing legal regulations, and the declining effectiveness of traditional monetization methods. Launching a new game is no longer just about innovative gameplay or attractive graphics but also about adapting to a dynamically changing business environment.
One of the biggest challenges is the oversaturation of the market with low-quality games. Every day, hundreds of new titles appear in Google Play and the App Store, many of which are simple, mass-produced games that bring nothing new. Many developers try to use pre-made assets, and some studios specialize in quickly creating games based on popular trends. As a result, breaking through without a large marketing budget for user acquisition or a unique concept that attracts players organically is difficult. Even the most polished game can go unnoticed if it is not effectively promoted.
Another major issue is the changing regulations regarding user privacy. Apple introduced the App Tracking Transparency (ATT) policy, which significantly limited the ability to track users for advertising purposes. Google is preparing similar changes with its Privacy Sandbox for Android, which will further complicate precise ad targeting. These changes have a direct impact on the profitability of free-to-play games, which have relied heavily on effective advertising and precisely targeted campaigns. Previously, developers could optimize their ad spending based on detailed user data, but after ATT was implemented, the effectiveness of these strategies dropped significantly. The alternative has been using Apple’s SKAdNetwork, but its limitations make user attribution and campaign effectiveness measurement less precise. I have written a separate post on this blog about SKAdNetwork.
The decreasing effectiveness of advertising in the free-to-play model is another problem developers face. The cost of user acquisition (CPI) continues to rise, especially in the most competitive game categories. Many studios are noticing that players are becoming less likely to click on ads (known as ad blindness), and their tolerance for ad formats is decreasing. Users increasingly close ads immediately after they appear or simply abandon games that require them to watch too many ads. Developers must look for new monetization strategies—hybrid models that combine microtransactions, ads, and subscriptions are becoming more common. Games that rely on battle passes or paid cosmetic items are gaining popularity because they allow for better revenue optimization without relying heavily on ads.
These changes make the mobile gaming market increasingly difficult for independent developers. High user acquisition costs, challenges with precise ad targeting, and growing competition require a new approach to game design and monetization. Developers who want to succeed must invest not only in game quality but also in retention and user engagement strategies. Games must provide long-term value so that players are encouraged to return for repeated sessions and in-app purchases.
Adapting to these market challenges has become crucial. Developers need to focus on ASO optimization, more effective first-party data management, LiveOps, and building loyal communities around their games. Market trends indicate that the future belongs to games with strong LiveOps elements, which can maintain player engagement through regular updates and seasonal events. In a world where users have thousands of free games to choose from, keeping them engaged in your ecosystem is a key factor for success.
How much does it cost to develop a mobile game? – summary
The cost of developing a mobile game depends on many factors, including the type of production, complexity level, tools used, and the chosen monetization model. This article has analyzed budgets for both small hyper-casual games and high-budget multiplayer productions. It has shown that while it is possible to create a simple game with relatively low financial investment, achieving market success requires not only production but also an effective marketing strategy and a well-thought-out monetization approach.
Developing mobile games can be a profitable business, but it is not an easy path. The market is highly competitive and saturated, and changing privacy regulations and rising user acquisition costs mean that simply having a good game does not guarantee success. A well-thought-out plan of action is essential—market analysis, cost optimization, selecting the right monetization model, and effective promotion.
Before committing to production, it is important to carefully analyze the budget and realistically assess available resources. Mobile games can generate significant revenue but require a long-term approach—not only in development but also in updates, player retention, and engagement management. Strategic planning, flexibility in adapting to market trends, and smart budget management are key factors that increase the chances of success in this dynamic industry.
Mobile App Marketing in 2024: A Summary
How much does it cost to create a simple hybrid-casual game? Can a mobile game be...