November 23rd, 2008 by Arjan Olsder Posted in Analysis & Editorial | No Comments »
The arrival of the iPhone has generated a universally positive response from mobile games publishers and developers, the volume of paid-for mobile game downloads has nonetheless flatlined across North America and Western Europe, according to Juniper Research.
Although the retail value of the global mobile games market is expected to rise from $5.4bn in 2008 to more than $10bn in 2013, the potential for growth in many key markets is being dampened by a combination of limited on-portal revenue share for publishers and poor games marketing.
“The revenue share offered by Apple to games publishers is incredibly attractive. The danger is that if operators do not respond with a similar business model, publishers faced with low margins may simply exit Java completely, thereby reducing consumer choice in the longer term.” said report author Dr Windsor Holden.
The report also found that while ad-funded downloads have increased markedly in popularity, the revenues accrued from advertising are unlikely to be sufficient to provide developers or operators with a primary revenue stream. It argued that, with cost per mille (CPM) rates likely to fall in the face of pressures on advertising budgets, advertising would be largely employed by most publishers as a means of monetising older content.
However, the Juniper study remained optimistic about prospects for growth in regions such as the Indian Sub Continent, Africa/Middle East and South America, where the combination of increased mobile adoption and low levels of penetration of both games consoles and fixed Internet means that the mobile handset has already become the de facto gaming device. The report also stated that in-game advertising will rise significantly from 2008 to 2013.
Interesting: Check Volkers vision on this news bit.
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