Mobile gaming has exploded in recent years, with the proliferation of smartphones and tablets disrupting the hold of traditional console makers like Nintendo.
Addictive hits, from Angry Birds to Clash of Clans, have proved popular with so-called "casual gamers" and will help drive $30 billion of revenues to the mobile games markets this year, according to market research firm Newzoo. (Tweet this)
But despite near-8 percent growth forecast for the industry over the next four years, gamemakers are struggling financially as many of their one-hit wonders lose popularity, forcing them to look for new ways to keep people engaged.
Mind Candy, the U.K. company behind hit-game Moshi Monster, which boasts over 80 million registered users, saw its net profit plunge from £8.1 million ($12.7 million) in 2012 to a £2.2 million loss in 2013, according to its latest financial results.
On Wednesday, the chief financial officer of Mind Candy told CNBC that Moshi Monster, originally a web-based game, had failed to fully adapt to the increasing number of kids playing games on mobile devices.
"One of the real shames about Moshi is that it was only ever in English-speaking markets and we never got a chance to localize it, including kids consuming more on mobile rather than web," Divinia Knowles, who is also president of Mind Candy, told CNBC.
"Moshi generated a billion dollars at retail value and that could have been much bigger," she added.