Apple's App Tracking Transparency (ATT) privacy framework could have contributed to the decline in U.S. game installs and time spent with the apps in 2024, as well as in the first quarter of 2025.
ATT opt-in rates rose slightly from 37.5% to 37.9% in Q1 2025, according to data from Adjust. But the recent study, Gaming App Insights 2025, from the measurement and analytics company suggests AI-driven behavior data can turn that around.
Generative AI-driven personalization has begun to enhance in-game experiences and provide predictive retention strategies, according to Adjust, an analytics and measurement company.
The data identifies trends and patterns expected to shape the gaming app industry in 2025. These trends include personalization through artificial intelligence (AI), hybrid monetization and user acquisition (UA) strategies.
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“Developers can personalize experiences, optimize game mechanics, and offer targeted rewards that drive longer play sessions, encourage repeat engagement, and ultimately improve retention,” said Tiahn Wetzler, director of content and insights at Adjust. “With increased prevalence of AI and machine learning technology to personalize content, from ad creative through to the user journey, it has become more and more possible to give cohorts, and even individual users, experiences that convert.”
Roughly 57% of the U.S. population is projected to play digital games in 2025, according to Emarketer. Asia-Pacific will account for more than 57%, with 588.9 million coming from China and 460.7 million from India. But the fastest growth will come from the Middle East and Africa.
Adjust’s 2024 data suggests North America saw the steepest decline of app installs, down 11%. Sessions dropped 14% in the same year, compared with the prior year, signaling user engagement challenges.
Middle East and North Africa with 10%, and Latin America at 8% led global gaming app install growth in 2024, while sessions increased 7% and 5%, respectively.
Asia-Pacific app installs grew 4% while sessions declined 3%, indicating retention challenges. Europe experienced a 1% drop in installs and 6% drop in sessions, reflecting possible issues with user engagement.
Global gaming app installs overall rose by 4% YoY in 2024, although the amount of time spent with content fell by 0.6% after a very challenging prior year, according to recent data.
The hyper-casual category garnered 27% of installs, the largest global share. Action games, despite representing just 10% of installs, generated 21% of sessions.
Gaming app businesses need sophisticated analytics to drill into what converts and what doesn’t, and how that differs based on regional preferences, device types, and demographic data, Wetzler said.
“Staying ahead of evolving privacy laws, regulations, and frameworks is critical to success. From Apple’s ATT, to laws like the DMA and CCPA, the ability to work with aggregated and privacy-compliant data as part of a bigger measurement picture means adopting a next-generation mindset, which is fundamentally data-based and agile.”