There is a stronger growth rate in mobile gaming than in console and handheld markets, albeit coming from a smaller market share, according to the latest research from entertainment analyst firm Understanding & Solutions.
David Rouse, analyst at Understanding & Solutions, said: “Global revenues from mobile gaming are pegged at $3.6 billion this year, and we predict this figure to rise to $6.0 billion by 2011.
“Although not seen as the killer application for mobile, games are increasingly important as the market continues to see major growth.”
Going forward, technological and infrastructure developments will allow consumers’ gaming behaviour to evolve, thus opening up new business model possibilities.
This, coupled with strong growth forecasts in the mid term, is leading to fierce competition in the sector and is impacting upon publishers, network operators, developers and IP owners alike.
“Subscription based and ad-funded models are on the rise,” continues Rouse, “and microtransactions – the acquisition of additional levels or virtual goods during game play – are also beginning to play a part. However, pay per download is still the most significant revenue generator across all regions.”
At the same time, an increasing number of traditional content owners are moving into the mobile games space, either by setting up their own mobile games subsidiaries like EA mobile and THQ wireless, or by licensing out content (Sega, Konami, MGM, Universal, Warner). Conversely, existing players in the marketplace are consolidating through mergers and acquisitions.
Looking to emerging markets, particularly China and India, Understanding & Solutions said that the segment is driven by snowballing mobile phone take-up rates; however, due to comparably low prices, Asia – excluding Korea and Japan – is still expected to account for less than 10% of global revenues in 2011.
In November, Juniper Research forecast that the mobile gaming market will reach £10 billion by the end of 2009 (see Mobile Games Market Predicted To Reach $10bn by 2009).
In total, more than 460 million mobile users are expected to download games by 2009, representing a more than double increase on the current number.
A recent report from iSuppli Corp revealed that the global mobile-gaming market suffered a reversal of fortune in the second quarter of 2007 as revenues for title publishers declined by 9%, compared with 11% growth in the first quarter (see Global Mobile Gaming Revenue Falls in Q2).
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