Mobile games revenue reaches $5.4bn in 2008

HAMPSHIRE, UK: While the mobile games markets in Western Europe and North America slowed markedly in 2008, strong growth across the Indian Sub Continent – where sales more than doubled in 2008 – Africa &

Middle East, and developing nations across the Asia Pacific regions saw global revenues for the sector rise more than 20% to an estimated $5.4bn in 2008, according to a new report from Juniper Research.

The mobile games report found that despite the flatlining of download volumes in countries such as the US and UK, and decreasing growth in Japan, adoption of mobile games continued unabated in the key Indian and Chinese markets.

iPhone and Apple App Store deliver Gold Future Mobile Award to Apple. Furthermore, the decline in Java downloads in Western Europe and North America in 2008 was offset by the remarkable volume of downloads generated through the Apple App Store for the iPhone. The report also noted that the  levels of gameplay per download via iPhone were far higher than for any other handset, factors that combined to bring Juniper’s Future Mobile Gold Award for Mobile Games to Apple. “The combination of iPhone and the Apple App Store has galvanized the mobile games industry,” said report author and Future Mobile Awards panel judge, Dr Windsor  olden. “Apple has provided an innovative device which enables developers to create smooth, compelling, visually attractive games for the mobile user, together with a business model offering a highly competitive revenue share for developers.”

Other findings from the Juniper report include:

•       The Far East & China is the largest regional market in terms of games downloads; the Indian Sub Continent will overhaul Western Europe to become the second-largest such market by 2010.

•       More than 50% of games downloaded by 2012 will be funded by advertising

•       Operators in Europe and the US need to reduce their demands on game revenue share to encourage developers.