Mobile Gaming Revenues set to Skyrocket

by Matt Klassen on December 1, 2010

For many casual smartphone users the argument has long been that the mobile gaming market is good enough, stating that many of the industry leading smartphones are perfectly viable gaming platforms.       

But lets face it folks, while you may be addicted to such mobile games like Angry Birds or perhaps simply can’t stop playing FarmVille on your smartphone, the fact of the matter is that the evolution of the mobile gaming industry is still very much in its infancy.

Despite the fact that mobile games are seeing substantial revenues already—this year the mobile gaming market is reportedly already worth over $7 billion—the reality of the mobile gaming market is it lacks content, with games that don’t even rival what we saw on the Nintendo Gameboy all those years ago.

So with little to show currently in the way of gaming innovation or advancement, will the market be able to develop enough to earn the estimated $11 billion in revenue by 2015?

There’s little question that for many companies the next big mobile revenue stream will be gaming, with market analysts estimating that the gaming market will double its profits by 2015, topping $11 billion dollars. But with the current state of mobile gaming attracting only casual gamers—those who are unwilling to spend any significant amount of money on games—the next evolution of mobile gaming will need to attract the hardcore gamers, those who take gaming very seriously and who frequently scoff at the current mobile offerings.

But the question becomes, will mobile devices ever be able to rival the game-play experience of a console or computer? While that question remains unanswered, it’s clear that several significant challenge stand in the way of advancing mobile gaming.

The first—and perhaps most important—issue standing in the way of truly advancing the mobile gaming market is storage. The more graphics intensive a game becomes and the more content it delivers, the more media storage it requires, and with most mobile devices offering around 32Gb of storage, there simply isn’t enough room to store and run high-end games. 

Beyond that, aside from the rumoured Sony Ericsson gaming phone, smartphones simply lack the control responsiveness and accuracy required to play high speed action or fighting games.

But there’s good news on the horizon, as most gaming companies have created mobile gaming divisions in the last few years, meaning that advanced content may be increasingly available on your mobile device as the devices themselves continue to develop.

When it comes to generating revenue in the short term, however, mobile gaming companies are taking a page out of current strategies employed by popular MMO games like World of Warcraft and Lord of the Rings Online, looking to offer games for free and charging users for upgrades, additional levels, and other in-game content. It seems the both casual and hardcore gamers are more willing to pay-to-play while in the midst of playing a free game then paying for one before they try it out.

In the end, it remains to be seen whether or not mobile gaming will ever rival console and computer games when it comes to graphics or content, but in the meantime the mobile gaming world has a plan to make money, it’s just a question of whether or not you’re willing to pay-to-play.

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Written by: Matt Klassen. www.digitcom.ca >. Follow TheTelecomBlog.com > by: RSS >, Twitter >, Identi.ca >, or Friendfeed >

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