$10 Billion Revenues from Mobile Games

Mobile games revenues generated by end-users will reach $10 billion by 2009, according to a study performed by Juniper Research, due to the fact that casual gaming’s popularity is increasing and the range of mobile phones supporting high quality 3D graphics for core games becomes
wider.

By 2009, at least 460 million users are expected to download mobile games, which represents an increase with more than 100% on the current mobile games downloads. An important role in this growing will be played by emerging markets like the Indian one, where the number of users is expected to reach about 40 million in 2009, from the 10 million of 2007.

“Game downloads have already overtaken those of ringtones in a number of Western European markets,” says Dr. Windsor Holden, the report’s author, “while mobile handsets are now the de facto games console in many developing countries.”

The Juniper Research report also reveals that the high cost of browsing and downloading content or services together with often unfriendly pricing structures continue to be an impediment to mobile gaming adoption. Furthermore, the report adds that game publishers and developers should enlarge the number of games offered as free trials in order to make a higher number of gamers to play and eventually become buyers.

“Essentially, the proportion of leading titles focusing on action and adventure has not altered discernibly over the past two years,” Dr. Holden said. “While these are popular within the traditional gaming demographic, there is a major opportunity to attract casual gamers by enhancing a portfolio mix with more titles from alternative genres.”

In the near future, the largest regional market for mobile games will remain China and the Far East, providing, in 2012, revenues of about $5.7 billion. Also, the global in-game advertising revenues will rise from the current $90 million to more than $1.2 billion in 2012, Juniper Research says.