Iranian Mobile Game Usage Drops 85% in Two Years, Industry Head Says

Mohammad Haji-Mirzaei, CEO of the National Foundation for Computer Games, said domestic game production has declined, with Iranian mobile games losing approximately 85% of their market share between 2020 and 2022.

According to the foundation’s 2022 survey, local titles accounted for nearly 40% of Iran’s mobile gaming consumption in 2020. By 2022, that figure had dropped to just 6%. Much of the content currently available in the domestic mobile market was produced before 2020, he noted, adding that investment efforts are underway to compensate for reduced output.

Regional Competitors Pull Ahead

Haji-Mirzaei stated that during the 2010s, Iran led the Middle East in both esports and video game development. However, regional competitors have since advanced.

He cited Turkey’s growing number of internationally active studios and Saudi Arabia’s large-scale investments in esports and gaming infrastructure. Gulf countries have hosted high-prize tournaments and, in some cases, attracted Iranian professional gamers through specialized gaming visas.

Efforts to Revive Domestic Consumption

To increase domestic engagement, the foundation included 10 Iranian games in this year’s competitions, drawing 400,000 participants. Haji-Mirzaei emphasized the need for higher-quality production, stronger investment, and integrated support structures, including user acquisition services and infrastructure assistance for development teams.

The organization is also establishing an intermediary body to connect small and medium-sized Iranian studios with international markets. While larger developers may find ways to navigate sanctions-related barriers, smaller teams often lack that capacity. Expanding global distribution channels could strengthen the sector’s economic sustainability.

Target: Restore 30% to 40% Market Share

The foundation aims to restore Iranian games to 30% to 40% of domestic market consumption through competitiveness rather than restricting foreign titles. Annual surveys will track progress.

Haji-Mirzaei noted that Iranian developers operate across multiple production tiers. Some titles have generated several million dollars in global revenue, and certain mobile games have reached up to one million users abroad. However, liquidity challenges risk prompting talent migration, career shifts, or reduced activity despite available technical capacity.

Limits in AAA Competition

Addressing expectations around high-budget AAA titles, Haji-Mirzaei said Iran lacks the financial and organizational scale to compete at that level. AAA productions often exceed $100 million in development costs and involve teams of several thousand employees.

He argued that assumptions about producing globally competitive titles with minimal budgets and small teams are unrealistic. Securing even $1 million in funding is difficult domestically, let alone $100 million. By comparison, Saudi Arabia has recently invested $40 billion in the gaming sector and acquired major stakes in global companies such as Electronic Arts.