Non-gaming apps now outearn mobile games in in-app purchases, report shows
Since 2016, non-gaming apps like TikTok and AI chatbots have surpassed mobile games in in-app purchase revenue, according to an AppMagic report. While games such as Honor of Kings and Free Fire remain top downloads and grossing titles, platforms with social and AI features dominate monetization. The data reveals a shift in consumer spending habits, with some games seeing strong growth despite broader industry trends.
Since 2016, non-gaming applications have overtaken mobile games in in-app purchase (IAP) revenue, according to a decade-long analysis by AppMagic. While titles like TiMi Studio Group’s Honor of Kings and Garena’s Free Fire maintained dominance in downloads—Honor of Kings leading IAP revenue from 2017 to 2026 with $1.1 billion in 2026, and Free Fire amassing 221 million downloads in 2026—platforms such as TikTok and AI chatbots like ChatGPT have surpassed them monetarily. TikTok has been the top-grossing app annually since 2020, while ChatGPT was the most downloaded app globally in 2025. Even games with massive download numbers, like Among Us (930 million downloads, $52 million revenue), underperformed financially compared to titles such as Umamusume, which earned $1.6 billion from just 19 million downloads. Notably, Free Fire generated no revenue at launch but has since accrued $3.3 billion. Despite broader industry trends favoring non-gaming apps, a few games continue to grow: Gossip Harbor: Merge & Story saw a 95% YoY revenue increase through October 2026, Kingshot grew by 126%, and Honor of Kings rose 5%.
This shift reflects evolving consumer behavior, where users increasingly spend on social engagement and AI-driven experiences rather than traditional gameplay. The rise of TikTok and AI chatbots—platforms that offer continuous content personalization and real-time interaction—may signal a deeper trend toward experiential digital consumption over entertainment-centric g
The shift from gaming to non-gaming apps dominating IAP revenue could reshape digital consumer behavior, particularly among younger demographics who now prioritize social connection and instant AI interaction over traditional play. Platforms like TikTok and ChatGPT may be setting a new benchmark for user engagement that games must emulate to remain competitive. This could pressure game developers to integrate more social features or AI personalization into their titles, potentially blurring the line between gaming and social media. The contrast between download volume and revenue—seen in Among Us versus Umamusume—suggests that monetization efficiency may matter more than audience size, which could lead to tighter quality control and more strategic marketing. A comparable earlier case is the rise of Facebook in the early 2010s, when social platforms began outpacing standalone apps in revenue despite lower perceived entertainment value. Now, as AI and real-time content become central, we