Gaming over mobile devices such as cell phones, once expected to be a major new source of revenue for cellular operators, is "stagnating," according to a market research firm M:Metrics.
The study examined mobile game purchasing patterns in United States, United Kingdom, and Germany, found relatively few cellular subscribers download games and those numbers have not been increasing over time. It found that 2.7 percent of cellular subscribers in the US downloaded games in March, compared to 2.5 percent of German subscribers and 4.2 percent of UK subscribers.
The findings also indicated that game downloads/purchases are often directly tied to handset purchases, and consequently "fluctuate in relation to the device sales cycle." Upwards of 30 percent of those who downloaded a game in March were first-time downloaders.
"The rate at which new subscribers are being drawn into the market is relatively low, with between 0.5 percent and 0.8 percent of mobile subscribers downloading their first mobile game in the month," stated M: Metrics.
"The level of repeat purchase is between 20 percent and 30 percent of the universe of downloaded games players," stated M: Metrics.
"There’s revenue to be had, and companies are making a living," M: Metrics analyst Seamus McAteer said. "It’s just not growing."
McAteer said," The phone interface that consumer’s access when downloading games, which usually lists only game titles is one of the biggest reasons behind the slow growth. As a result, the games that tend to sell best are those with instant name recognition among consumers, such as Pac-Man or Tetris."
"It looks like Craigslist instead of iTunes," McAteer said of the interface. Without a more vibrant shopping experience, he said, the market will have trouble growing further out of its niche.
To further put the mobile situation into perspective, the study revealed that the percentage of US subscribers who downloaded mobile games fell behind even wallpaper and screensaver downloads.
Mobile Game Industry 'Stagnating'
Thu, 04 May 2006
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