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Software industry

Mobile Gaming Frenzy Eludes Industry Despite Rapid Growth

Strategic Insights

— 2 min read

Mobile gaming is an expanding industry with an increasing availability of three-dimensional games with fancy graphics, but the takeup of these new games has been slow. Gaming enthusiasts and industry analysts have expressed doubts about their commercial viability due to concerns over loading times and the need for powerful hardware. Despite this, producers continue to churn out intricate games, and phone makers are spicing up their products to offer the best game-playing experience. The mobile gaming market is expected to reach $4 billion this year and $8.5 billion in 2010, with Asia being the biggest market.

Key Takeaways:

  • The mobile gaming market is expected to reach $4 billion this year and $8.5 billion in 2010, according to Ovum.
  • Asia is the biggest market for mobile gaming, followed by Europe and the United States.
  • Gaming enthusiasts and industry analysts have expressed doubts about the commercial viability of mobile gaming due to concerns over loading times and the need for powerful hardware.
  • Producing 3D games for mobile devices is more difficult than for portable gaming platforms, making 2D games more common.
  • Many popular mobile games are casual, simple, and 2D, such as "Bejeweled" and "Tetris".
  • Nokia's N-Gage phone, released in 2003, failed to gain significant market share due to poor performance and high cost.
  • Mobile gaming usage is slow among consumers, with only a small percentage downloading games and playing them on their phones.

Statistics:

  • The top 10 uses of mobile data services are: text messaging (40%), e-mail (24%), multimedia messages (15%), downloading programs (6%), location-based services (4%), financial transactions (3%), and mobile gaming (1%).
  • 97% of cellphone subscribers in Asia, Europe, and the United States have cellphones featuring at least a few simple games (Source: _Ericsson_ White Paper).
  • 75% of mobile phone users do not download any applications, including games (Source: _GSM Association_).
  • Mobile gaming revenue is expected to reach $10.1 billion by 2015 (Source: _ABI Research_).

Sources:

  • Ovum: A consulting firm that forecasts the mobile gaming market to reach $4 billion this year and $8.5 billion in 2010.
  • Ericsson: A white paper stating that 97% of cellphone subscribers in Asia, Europe, and the United States have cellphones featuring at least a few simple games.
  • GSM Association: A study finding that 75% of mobile phone users do not download any applications, including games, and text messaging is the 10th most common use of mobile data services.
  • ABI Research: A report predicting that mobile gaming revenue will reach $10.1 billion by 2015.

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