Saturday, Jun 28, 2008    Text size: 

Although this figure represents an annual increase in sales of more than 16 percent, the market segment continues to be overshadowed by other value-added entertainment services, including music and adult entertainment — the latter of which is estimated by some sources to exceed $14 billion in annual sales.

Still, analysts say that the mobile gaming market is substantial and offers considerable room for growth.

"Current consumer interest in, and use of, mobile gaming is generally low," principal analyst for Gartner, Tuong Huy Nguyen, said. "But the potential for growth remains lucrative, with the market skewed toward lower-income segments, mobile workers and smartphone and PDA users."

Gartner predicts an annual growth rate of more than 10 percent for mobile gaming revenues for the foreseeable future, with a market value of more than $6 billion by 2011.

According to Nguyen, the double-digit growth rate is due to the value of mobile gaming products and services for the money being charged, plus the increased adoption of high-quality portable consoles along with an increasing level of cooperation between mobile operators and game publishers.

Nguyen sees escalating opportunities for mobile operators seeking to offset declining phone service revenues by working with game developers to offer advertising-funded games and on-deck demos.

"As voice revenues decline, mobile operators need to find ways to offset this downward trend and mobile gaming has considerable growth potential," Nguyen said.