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Mobile games now account for 33% of installs, 10% of time and 74% of consumer spend

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Mobile gaming continues to hold its own, accounting for 10% of the time users spend in apps — a percentage that has remained steady over the years, even though our time in apps overall has grown by 50% over the past two years. In addition, games are continuing to grow their share of consumer spend, notes App Annie in a new research report out this week, timed with E3.

Thanks to growth in hyper-casual and cross-platform gaming in particular, mobile games are on track to reach 60% market share in consumer spend in 2019.

The new report looks at how much time users spend gaming versus using other apps, monetization and regional highlights within the gaming market, among other things.

Despite accounting for a sizable portion of users’ time, games don’t lead the other categories, App Annie says.

Instead, social and communications apps account for half (50%) of the time users spent globally in apps in 2018, followed by video players and editors at 15%, then games at 10%.

In the U.S., users generally have eight games installed per device; globally, we play an average of two to five games per month.

The number of total hours spent on games continues to grow roughly 10% year-over-year, as well, thanks to existing gamers increasing their time in games and from a broadening user base, including a large number of mobile app newcomers from emerging markets.

This has also contributed to a widening age range for gamers.

Today, the majority of time spent in gaming is by those aged 25 and older. In many cases, these players may not even classify themselves as “gamers,” App Annie noted.

While games may not lead the categories in terms of time spent, they do account for a large number of mobile downloads and the majority of consumer spending on mobile.

One-third of all worldwide downloads are games across iOS, Google Play and third-party app stores.

Last year, 1.6+ million games launched on Google Play and 1.1+ million arrived on iOS.

On Android, 74 cents of every dollar is spent on games, with 95% of those purchases coming as in-app purchases, not paid downloads. App Annie didn’t have figures for iOS.

Google Play is known for having more downloads than iOS, but continues to trail on consumer spend. In 2018, Google Play grabbed a 72% share of worldwide downloads, compared with 28% on iOS. Meanwhile, Google Play only saw 36% of consumer spend versus 64% on iOS.

One particular type of gaming jumped out in the new report: racing games.

Consumer spend in this subcategory of gaming grew 7.9 times as fast as the overall mobile gaming market. Adventure games did well, too, growing roughly five times the rate of games in general. Music games and board games were also popular.

Of course, gaming expands beyond mobile. But it’s surprising to see how large a share of the broader market can be attributed to mobile gaming.

According to App Annie, mobile gaming is larger than all other channels, including home game consoles, handheld consoles and computers (Mac and PC). It’s also 20% larger than all these other categories combined — a shift from only a few years ago, attributed to the growth in the mobile consumer base, which allows mobile gaming to reach more people.

Cross-platform gaming is a key gaming trend today, thanks to titles like PUBG and Fortnite in particular, which were among the most downloaded games across several markets last year.

Meanwhile, hyper-casual games are appealing to those who don’t think of themselves as gamers, which has helped to broaden the market further.

App Annie is predicting the next big surge will come from AR gaming, with Harry Potter: Wizards Unite expected to bring Pokémon Go-like frenzy back to AR, bringing the new title $100 million in its first 30 days. The game is currently in beta testing in select markets, with plans for a 2019 release.

In terms of regions, China’s impact on gaming tends to be outsized, but its growth last year was limited due to the game license regulations. This forced publishers to look outside the country for growth — particularly in markets like North America and Japan, App Annie said.

Meanwhile, India, Brazil, Russia and Indonesia lead the emerging markets with regard to game
downloads, but established markets of the U.S. and China remain strong players in terms of sheer numbers.

With the continued steady growth in consumer spend and the stable time spent in games, App Annie states the monetization potential for games is growing. In 2018, there were 1,900 games that made more than $5 million, up from 1,200 in 2016. In addition, consumer spend in many key markets is still growing too — like the 105% growth in two years in China, for example, and the 45% growth in the U.S.

The full report delves into other regions as well as game publishers’ user acquisition strategies. It’s available for download here.

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Microsoft alleges attacks on French magazine came from Iranian-backed group

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Microsoft said on Friday that an Iranian nation-state group already sanctioned by the US government was behind an attack last month that targeted the satirical French magazine Charlie Hebdo and thousands of its readers.

The attack came to light on January 4, when a previously unknown group calling itself Holy Souls took to the Internet to claim it had obtained a Charlie Hebdo database that contained personal information for 230,000 of its customers. The post said the database was available for sale at the price of 20 BTC, or roughly $340,000 at the time. The group also released a sample of the data that included the full names, telephone numbers, and home and email addresses of people who had subscribed to, or purchased merchandise from, the publication. French media confirmed the veracity of the leaked data.

The release of the sample put the customers at risk of online targeting or physical violence by extremist groups, which have retaliated against Charlie Hebdo in recent years for its satirical treatment of matters pertaining to the Muslim religion and Islamic countries such as Iran. The retaliation included the 2015 shooting by two French Muslim terrorists and brothers at Charlie Hebdo offices that killed 12 and injured 11 others. To further gin up attention to the breached data, a flurry of fake personas—one falsely claiming to be a Charlie Hebdo editor—took to social media to discuss and publicize the leak.

Twitter post purporting to come from impersonating a Charlie Hebdo editor.
Enlarge / Twitter post purporting to come from impersonating a Charlie Hebdo editor.

Microsoft

On Friday, Clint Watts, the general manager of Microsoft’s Digital Threat Analysis Center, wrote:

We believe this attack is a response by the Iranian government to a cartoon contest conducted by Charlie Hebdo. One month before Holy Souls conducted its attack, the magazine announced it would be holding an international competition for cartoons “ridiculing” Iranian Supreme Leader Ali Khamenei. The issue featuring the winning cartoons was to be published in early January, timed to coincide with the eighth anniversary of an attack by two al-Qa’ida in the Arabian Peninsula (AQAP)-inspired assailants on the magazine’s offices.

The tactics, techniques, and procedures of the influence campaign led Microsoft researchers to conclude it was the work of Emennet Pasargad, an Iranian group that has long been monitored and targeted by the US government. The FBI said in January 2022 that Emennet Pasargad was behind “a multi-faceted campaign to interfere in the 2020 US presidential election.”

Participants in the operation obtained confidential US voter information from at least one state election website, sent threatening emails designed to intimidate voters, and published a video airing disinformation concerning non-existent voting vulnerabilities. The group also claimed affiliation with the neo-fascist group Proud Boys to further intimidate voters.

Last October, the FBI said that Emennet Pasargad targeted groups in Israel with “cyber-enabled information operations that included an initial intrusion, theft, and subsequent leak of data, followed by amplification through social media and online forums, and in some cases the deployment of destructive encryption malware.”

The US Treasury in 2021 placed sanctions on Emennet Pasargad and six Iranian nationals who are members, citing their attempts “to sow discord and undermine voters’ faith in the US electoral process.”

Friday’s post said Microsoft had “high confidence” that the group, which the company refers to as Neptunium, was behind the Charlie Hebdo influence campaign. The assessment was based on elements including:

  • A hacktivist persona claiming credit for the cyberattack
  • Claims of a successful website defacement
  • Leaking of private data online
  • The use of inauthentic social media “sockpuppet” personas—social media accounts using fictitious or stolen identities to obfuscate the account’s real owner for the purpose of deception—claiming to be from the country that the hack targeted to promote the cyberattack using language with errors obvious to native speakers
  • Impersonation of authoritative sources
  • Contacting news meida organizations
Attribution matrix Microsoft used to arrive at its assessment.
Enlarge / Attribution matrix Microsoft used to arrive at its assessment.

Microsoft

Microsoft said the January campaign used French-language sockpuppet social media accounts, many with low follower counts, to amplify the leak and “distribute antagonistic messaging.” The accounts also posted criticisms of the cartoon competition aimed at Khamenei.

“Crucially, before there had been any substantial reporting on the purported cyberattack, these accounts posted identical screenshots of a defaced website that included the French-language message: ‘Charlie Hebdo a été piraté’ (‘Charlie Hebdo was hacked’),” Watts wrote.

Shortly after that, at least two social media accounts—one purporting to belong to a tech executive and the other to a Charlie Hebdo editor—posted screenshots of the leaked customer data.

The campaign Microsoft has documented is the latest reminder that social media is often manipulated by special interest groups—some with deep pockets. People would do well to remember this manipulation and be careful to verify claims before spreading them further.

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The newest feature in the Microsoft Store is more ads

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If your main problem with the Microsoft Store is that you get too many relevant results when you search for apps, good news: Microsoft is officially launching Microsoft Store Ads, a way for developers to pay to get their apps in front of your eyes when you go to the store to look for something else.

Microsoft’s landing page for the feature says the apps will appear during searches and in the Apps and Gaming tabs within the app. Developers will be able to track whether and where users see the ads and whether they’re downloading and opening the apps once they see the ads.

Microsoft also provided an update on the health of the Microsoft Store, pointing to 2022 as “a record year,” with more than 900 million unique users worldwide and “a 122% year-over-year increase in developer submissions of new apps and games.” Microsoft has steadily loosened its restrictions on Store apps in the last year or two, allowing in traditional Win32 apps and also leaning on Amazon’s Android app store and the Windows Subsystem for Android to expand its selection.

The company launched a “pilot program” of the Microsoft Store Ads back in September of 2022, and the look of the ads doesn’t appear to have changed much since then. Ads will be served to Microsoft Store users on Windows 10 and Windows 11 and are only available to developers who have already published their apps to the store.

Samples of the new Microsoft Store ads, including one for the prolific developers at Contoso Inc.

Samples of the new Microsoft Store ads, including one for the prolific developers at Contoso Inc.

Microsoft

These kinds of ads are usually described in benign terms—that they’re merely a way for the developers on the Microsoft Store to boost their work and find more users. The reality is that similar ads on Apple’s platforms, at least in my experience, tend to be either irrelevant (ads for Twitter or Truth Social on a search for Mastodon clients), annoying (ads for shovelware free-to-play games), actively malicious (the brief period where gambling ads took over the store), or some combination of all three.

The new addition may or may not turn up relevant search results for users, but it does add more advertisements to a platform that already has plenty of them. A fresh Windows 11 install from a USB stick automatically pulls down a range of third-party apps from the Microsoft Store the first time you connect to the Internet, and Windows includes plenty of Microsoft house ads for Edge, Bing, Microsoft Start, Microsoft 365, OneDrive, and other products and features.

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Until further notice, think twice before using Google to download software

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Searching Google for downloads of popular software has always come with risks, but over the past few months, it has been downright dangerous, according to researchers and a pseudorandom collection of queries.

“Threat researchers are used to seeing a moderate flow of malvertising via Google Ads,” volunteers at Spamhaus wrote on Thursday. “However, over the past few days, researchers have witnessed a massive spike affecting numerous famous brands, with multiple malware being utilized. This is not ‘the norm.’”

One of many new threats: MalVirt

The surge is coming from numerous malware families, including AuroraStealer, IcedID, Meta Stealer, RedLine Stealer, Vidar, Formbook, and XLoader. In the past, these families typically relied on phishing and malicious spam that attached Microsoft Word documents with booby-trapped macros. Over the past month, Google Ads has become the go-to place for criminals to spread their malicious wares that are disguised as legitimate downloads by impersonating brands such as Adobe Reader, Gimp, Microsoft Teams, OBS, Slack, Tor, and Thunderbird.

On the same day that Spamhaus published its report, researchers from security firm Sentinel One documented an advanced Google malvertising campaign pushing multiple malicious loaders implemented in .NET. Sentinel One has dubbed these loaders MalVirt. At the moment, the MalVirt loaders are being used to distribute malware most commonly known as XLoader, available for both Windows and macOS. XLoader is a successor to malware also known as Formbook. Threat actors use XLoader to steal contacts data and other sensitive data from infected devices.

The MalVirt loaders use obfuscated virtualization to evade end-point protection and analysis. To disguise real C2 traffic and evade network detections, MalVirt beacons to decoy command and control servers hosted at providers including Azure, Tucows, Choopa, and Namecheap. Sentinel One researcher Tom Hegel wrote:

As a response to Microsoft blocking Office macros by default in documents from the Internet, threat actors have turned to alternative malware distribution methods—most recently, malvertising. The MalVirt loaders we observed demonstrate just how much effort threat actors are investing in evading detection and thwarting analysis.

Malware of the Formbook family is a highly capable infostealer that is deployed through the application of a significant amount of anti-analysis and anti-detection techniques by the MalVirt loaders. Traditionally distributed as an attachment to phishing emails, we assess that threat actors distributing this malware are likely joining the malvertising trend.

Given the massive size of the audience threat actors can reach through malvertising, we expect malware to continue being distributed using this method.

Google representatives declined an interview. Instead, they provided the following statement:

Bad actors often employ sophisticated measures to conceal their identities and evade our policies and enforcement. To combat this over the past few years, we’ve launched new certification policies, ramped up advertiser verification, and increased our capacity to detect and prevent coordinated scams. We are aware of the recent uptick in fraudulent ad activity. Addressing it is a critical priority and we are working to resolve these incidents as quickly as possible.

Anecdotal evidence that Google malvertising is out of control isn’t hard to come by. Searches seeking software downloads are probably the most likely to turn up malvertising. Take, for instance, the results Google returned for a search Thursday looking for “visual studio download”:

Clicking that Google-sponsored link redirected me to downloadstudio[.]net, which is flagged by VirusTotal as malicious by only a single endpoint provider:

On Thursday evening, the download this site offered was detected as malicious by 43 antimalware engines:

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