Due to an increase in network access, faster broadband speeds, next-generation consoles and in recent times a larger proportion of mobile devices, the video game industry has seen a dramatic increase in popularity and it doesn’t look like it will see any sign of slowing down soon.
According to a recent report issued by CSMG, the strategy division of TMNG Global, titled ‘Playing Games: A Revolution in Interactive Entertainment’, the global video game industry is expected to reach $40 billion in annual revenues by 2012.
“Despite the economic downturn, gaming has proven to be resilient in these trying times and is the leading entertainment segment that is fuelling growth,” said Rich Nespola, chairman and CEO of TMNG Global.
Despite healthy growth from all the video game categories, it seems mobile games is the new boom market and represents the fastest growing segment with a 24.6 per cent compound annual growth rate forecasted for 2007 through 2012.
This growth is evidently spurred on by the recent proliferation of smart phones on the market and in particular the Apple iPhone which has opened up a huge amount of possibilities for the market, and with the new OS 3.0 just announced it may break down even more barriers.
The report outlines that service providers are well positioned to become a compelling distribution channel for video games given their existing assets.
“Carriers already have a scalable network infrastructure, established subscriber base, sophisticated billing systems and bundled product portfolios,” said CSMG
Armaghan Faroq, manager at CSMG, emphasised “service providers cannot afford to be late to the game in capturing the value created by the video games market and will need to create new business models to adequately capture the mobile gaming growth opportunities”.
According to the report if operators create a standards based mobile gaming marketplace, it will encourage the mobile gaming developer base and will in turn accelerate market growth and gamer penetration.
This report has highlighted a key growth area in the video game category and if it takes off, the industry as a whole will undoubtedly benefit, it looks like gaming has quite a future ahead of it.