Wednesday, July 20, 2011

Almost two-thirds of smartphone users regularly play games on their phone

Mobile gaming and smartphones bringing nontraditional players into the gaming audience

Almost one-third of people in the U.S. over 13 play mobile games monthly, and the number of gamers in older demographics more than doubled since 2007, according to Parks Associates.

The international research firm's new report Mobile/Portable Gaming: Market Updates finds the user base for gaming has expanded into nontraditional segments thanks to the popularity of mobile apps and titles such as Rovio’s Angry Birds. These changes will also force creation of new business models to generate revenues, with in-app purchases currently the most successful. This model provides the game for free and creates revenue streams by selling expansions or enhancements within the game, which helped Rovio reach over $70 million in revenues for Angry Birds.

“Traditional game companies have expressed concerns about mobile gaming devaluing the market, but in reality, mobile gaming has increased the overall user base and attracted new demographics," said Pietro Macchiarella, Research Analyst, Parks Associates. "The broad appeal of mobile games such as Angry Birds, Fruit Ninja, and Words with Friends and increasing ease with which people can download them have attracted less traditional gamers, including a growing number of older players and females.”

U.S. Mobile Gaming - Players - by Age, demographics

Penetration of smartphones and tablets, competition in app marketplaces, and better payment methods have also fueled growth. The challenge for next-generation portable consoles, the Nintendo 3DS and the PlayStation Vita, is to appeal to this larger audience and migrate more casual gamers to their platforms.

“People are already adopting smartphones in large numbers, and low-priced games and the freemium model are incentivizing them to try out mobile games," Macchiarella said. "However, these business models, even if implemented on portable consoles, will not drive consumers to buy new devices. Instead, people follow valuable content. If popular mobile titles are ported to dedicated gaming devices and enhanced with better graphics, controls, and storylines, manufacturers such as Sony and Nintendo will be able move loyal mobile gamers to their new platforms."

Mobile/Portable Gaming: Market Updates analyzes the current state of the mobile gaming and portable gaming industries, including new developments, business models, monetization opportunities, and five-year revenue forecasts. The report also analyzes consumer behavior and trends. For more information, visit www.parksassociates.com or contact sales@parksassociates.com, 972-490-1113.

About Parks Associates: Parks Associates, a woman-owned and woman-led internationally recognized market research and consulting company, specializes in emerging technology solutions serving the consumer and small to medium business (SMB) markets. Celebrating its 35th year in 2021, Parks Associates is a partner to companies navigating the changing consumer technology landscapes through data-driven market insights, extensive consumer and industry intelligence, custom marketing services, and executive networking experiences and conferences.

The company's expertise includes home automation, control systems and security, digital media and platforms, entertainment and gaming, home networks, internet and video services, connected health and independent living solutions, mobile applications and services, support services, consumer electronics, and energy management solutions.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit, Smart Energy Summit: Engaging the Consumer, and Future of Video: OTT, Pay TV, and Digital Media. http://www.parksassociates.com

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