Mobile games revenue to reach three billion in 2008 — MobileMonday Global: Industry News

^{Analysys predicts} Mobile games revenue to reach three billion in 2008

6 Nov 2003 at 20:02 GMT Timo Poropudas

Mobile gaming will be key in driving the growth of mobile content and entertainment services, according to a new report from ICT and media consulting house Analysys.

The report released on Thursday predicts that the total Western European market for mobile games will grow more than tenfold from its 2002 value of EUR 0.2 billion to nearly EUR 3 billion in 2008 - representing just over 19% of total revenue for mobile content and entertainment services. Nearly 80% of gaming revenue or EUR2.4 billion will be derived from downloadable games.

"Java handsets have become more widely available over the last 18 months, and mass-market interest in mobile gaming has grown strongly as a result," says the report's lead author, Rachael Beale.

"Users are swapping Snake for arcade simulations and film tie-ins, and the release of new devices optimised for gaming, like Nokia's N-Gage, is likely to encourage take-up further."

The report also notes that growth in both online and downloadable games will be further encouraged by the increasing availability of SIP (session initiation protocol) and 3G networks.

Along with more widespread device availability, 2002-3 has seen great steps taken in addressing some of the barriers to service take-up in Western Europe. Several operators, including O2 in the UK, Telefónica Móviles in Spain and Telecom Italia Mobile (TIM) in Italy, have launched mobile video and TV services ahead of 3G roll-out.

The introduction of the EU Directive on Privacy and Electronic Communications, more widespread availability of MMS and progress on agreeing interoperability standards through the Open Mobile Association (OMA) have all contributed to strong growth in mobile content and entertainment services over the past year, says the report but point out that, however, there remain challenges to be overcome.

Mobile games will be the topic of the December first meeting of MobileMonday community in Helsinki.