“Mobile games to remain a niche market” an article by Guy Daniels for TelecomTV mentions the latest Frost & Sullivan report about Mobile Gaming in Europe. According to this report the launch of new handsets and game titles will support growth in mobile gaming markets across Europe. But growth will be steady rather than exponential, due to games remaining a niche market application and the complications of implementing effective billing mechanisms. The report reveals that the European mobile gaming markets earned revenues of €850 million in 2006 and estimates this to reach €2.4 billion in 2012.
Frost & Sullivan suggest that off-portal storefronts, combined with “super-distribution”, will be the most important sales channel for the mobile games markets. While operators will attempt to create awareness and educate customers about with embedded offerings, the market will grow and mature only with the variety offered by large off-portal storefronts who play the role of discounted super-markets.
Meanwhile, a new US-based mobile gaining company launched yesterday, offering free downloadable games to consumers. GameJump.com offers over 75 games and relies on advertisers to offset costs. “We’ve shaken up the existing model for pay-to-play mobile games and introduced a way for everyone who owns a mobile phone to access and play games for free through our ad-supported network,” said CEO Michael Chang. “By taking a percentage of the advertising revenue, we can offer a wide collection of popular mobile games.”