Video Games & Mobile Games
The mobile games sector, which generates approximately $2 billion in annual sales, is poised to contribute significantly to overall computer and video game sales in the next few years. Recently, mobile games have made headlines for their innovative technologies and creative products. And it is estimated the sector will continue to grow at an annual compound rate of 25 percent through 2012, according to communications market researcher, TMNG.
A New Platform Emerges
The mobile game genre emerged in the early 1990s when calculator producers, such as Texas Instruments, embedded the now ubiquitous Snake game in their devices. The pixilated reptile that grew in size while gliding through a tiny maze so captivated users that Nokia decided in 1997 to become the first mobile phone provider to include a game in one of its models. In the 11 years since, an estimated 350 million mobile phones have offered Snake as a standard feature.
With Snake's popularity as inspiration, several companies began to work on technology, informally known as WAP, which would enabled mobile phones to transfer game-related data via a remote server. While early results proved too primitive to attract many adapters, gamers and developers began to see the possibilities for fast-action and multiplayer, mobilebased games.
The new millennium saw an abundance of ideas, funding—thanks to eager venture capitalists—and new publishers and developers. Phones now featured color screens and a select few supported Java programming language. In combination, these developments expedited the sophistication of mobile games. Progress suffered, however, as start-up companies created incompatible technologies.
Still, mobile games had become popular enough for inclusion in major game publishers' business plans; the sector was no longer the domain of small, independent game companies. A few major publishers launched mobile games divisions, but most opted to license out their most successful titles. Gamers already had access to portable devices provided by the major console manufacturers.
Other issues have plagued the mobile games sector in recent years. The proliferation of 3D games two years ago, in particular, revealed discrepancies in the sector's products. Enhanced graphics would n't not work on phones with slightly different capabilities. As a result, companies invested significant time and resources in "porting" games for the specifications of individual phones. The focus, therefore, was on adapting old titles rather than creating new games.
A Bright Future
At the end of 2008, 4.1 billion people worldwide subscribed to a mobile phone service, up from one billion in 2002. The mobile games sector owes its bright future to the technology dependency of these subscribers, particularly the teenagers among them.
According to the Entertainment Software Association's 2009 Essential Facts about the Computer and Video Game Industry, 37 percent of U.S. heads of households report playing games on wireless devices, up from 20 percent in 2002. The Pew Internet and American Life Project, meanwhile, found that 48 percent of U.S. teens play games on a cell phone or PDA. Combined with 71 percent of teens ages 12-14 playing games on a portable gaming device, the mobile games sector will likely entertain a large consumer base in the coming years.
Mobile game publishers, which now include members of other industries, have demonstrated an eagerness to embrace a wider audience and explore the potential that mobile games offer. The U.S. State Department, for example, invested $415,000 in X-Life, a mobile game for Middle Easterners designed to teach them the English language and American history and culture. The State Department hopes that "ediplomacy" might encourage cross-cultural understanding between the United States and countries in the Middle East and Persian Gulf.
Even major companies such as Disney, Viacom, USA Network and Burger King have launched mobile games in an effort to reengage their target audiences. Burger King's multilevel BK City game aims to increase customer acquisition and retention for the fast-food chain. "I think we hope to get brand recognition and we hope that the people who are downloading these games are apt to visit Burger King," said Heather Krasnow, a spokeswoman for the company.
Mobile games' enterprising history has set the stage for innovations in the years to come. Analysts anticipate the next generation of mobile games will likely include more multiplayer titles, in-game advertising and downloadable content. With major publishers renewing their interest in the sector, it is safe to assume that mobile games will play an important role in the continued evolution of the computer and video game industry.
Go Figure
- 4.1 billion — mobile phone subscribers worldwide at the end of 2008, compared with one billion in 2002.
- 350 million — the estimated number of mobile phones that have offered the first mobile phone game, Snake, as a standard feature.
- 37 — the percentage of heads of households who report playing games on wireless devices, up from 20 percent in 2002.
- 24.6 — the mobile games industry's predicted annual compound growth rate through 2012, according to communications market research firm TMNG.
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