Feature
A MAJOR PLAY FOR MOBILE GAMES
by Grace Saad
More than one-third of the world’s population carries a cell phone. Youth internationally are being given their first mobiles at astonishingly young ages, and it seems no demographic is safe from the idea that everyone, from a 3-year-old to a senior citizen, has an absolute need for a mobile phone.
The recent holiday season put thousands of multimedia-capable phones in the hands of consumers young and old. Which begs the question—what will customers do with their newly capable devices, other than talk?
“People’s basic expectations of their mobile phones have shifted dramatically over the last two years,” says Deepak Gupta, vice president of business development for Hovr, an ad-supported mobile gaming company. “Gone are the days when coverage maps or roaming agreements were the big factors when selecting a carrier. Today, people are thinking more about the types of phones they can get and what those phones can do for them beyond talking.”
While web surfing, taking photos and checking email rank high on the list of mobile media usage, mobile gaming is making a steady climb among consumers, according to principal analyst Windsor Holden of Juniper Research. Second only to text messaging in use among the youth demographic, mobile games are slated to create $10 billion in revenue by 2009, according to a recent Juniper study.
“Playing mobile games is the most popular mobile entertainment activity, hands down, with one in every three mobile subscribers interested in or already playing mobile games,” Gupta explains. “For most of us, our phone is the only media entertainment device we carry around. More and more people are taking advantage of idle time, while they wait in line or enjoy a break from the day, to play a casual game or two on their phone.”
Who’s playing?
When examining the typical mobile user, some common factors seem to emerge, Gupta says.
“While mobile games appeal to a wide audience, like most new and emerging entertainment outlets, the youth demographic is the first one playing games,” he says. “Almost 60 percent of people under 25 are interested in and have played mobile games.”
The market research company NPD Group agrees that gaming is most popular among children, with 84 percent playing games on a variety of platforms, and increasingly, that includes mobile.
According to an NPD study, gaming makes up 45 percent of the time children spend on digital devices, and often acts as a foot-in-the-door to kids' adoption of other digital technology. This affinity for game play will create an introduction that can lead to expanded use of digital media down the line.
It's not just children, though, who are downloading games, Gupta tells us.
“Mobile games have a wide appeal, and a significant portion of users are over the age of 25,” he says. “The appeal of easy to access entertainment from wherever you might be is incredibly broad—from the stay-at-home mom waiting to pick her kids up from school, to the business executive with 30 minutes to spare at the airport.”
Readers might also be surprised to learn that females purchase close to 50 percent of all mobile games, a figure that has often been ignored by the mobile games market says Holden.
“The key for mobile games lies in ensuring that a demographic that was somewhat underserved at the outset—the female gamer—is fully addressed,” he says.
Geographically, China and the Far East will remain the principal markets for mobile gaming in 2008, with an expected increase of nearly 100 percent, Holden explains in the Juniper report. Western Europe won't be too far behind with mobile game downloads expected to surpass ringtones in many European markets in 2008.
As varied as the mobile games user might be, the types of games available are equally so, Gupta adds.
“Overall, the puzzle games genre is the most popular. Casual games have wide appeal and games such as solitaire, Sudoku, Minesweeper, Tetris, Brick Breaker and poker remain those with the highest adoption rates,” Gupta says. “We see that younger demographics also enjoy playing the action and sports games.”
Variety is key to consumers who are trying out mobile games for the first time. Services like Hovr offer consumers a myriad of game choices in categories like casino, puzzle and sports.
Are carriers the barriers for easy game downloads?
Despite the varied options available, some industry pundits believe that the types of mobile games consumers chose are limited by their knowledge of the games themselves.
“I am, and consumers are most interested in, playing games which make the most of the strengths of the mobile platform,” says Mathew Kumar, lead blogger for GamesOnDeck. “Consumers need to be given more information about purchases, rather than just thinking, ‘I'll buy Tetris, because at least I know what that is.’”
Kumar lays most of the blame on carriers for the obstacles facing consumers in the mobile games industry.
“Purchasing or getting mobile games is irritating to say the least,” he says. “Distribution sucks. It would be really nice to see more uniform technology between handsets, at least for gaming, but I don't see it happening.”
Holden agrees that mobile gaming has many hurdles to overcome before reaching its peak.
“There is a difficulty in discovering content in the first place, in accessing that content, in navigating that content (game play) and in using multiple applications simultaneously,” he says. “Network speed and coverage is still an issue.”
But these complications are not impossible to overcome, Holden explains.
“In many cases these difficulties can be at least be partially alleviated by relatively simple solutions, increasing awareness, for example,” he says. “The marketing of mobile games is virtually non-existent, and when you consider the marketing that goes into major console games—Halo 3, for example—it’s no wonder public awareness is so low.”
Gupta also assures us that the mobile game community is quickly overcoming limitations.
“As mobile devices become more powerful, mobile games have become more sophisticated. The quality, graphics and overall game play experience improve almost daily, and many of the new mobile games are 3-D,” Gupta says. “The reality is, the type of gamer that is playing on their mobile phone is more interested in convenience and entertainment, and doesn't expect phenomenal graphics from their phone. It’s important to keep in mind that mobile games were not created to displace consoles, only to supplement them.”
The very structure and function of the cell phone is also being leveraged to counteract complications.
“There have been some games incorporating the camera phone and other native mobile functionalities,” Gupta says. “There are also more multi-player games now than ever before, and we have had great feedback from our users that the social networking capabilities of our service are important to them and keep them coming back to play and socialize more.”
In addition to the carrier and handset limitations, other important barriers to the adoption of mobile gaming include the high cost of browsing and downloading services, along with unclear price plans, Juniper reports.
“Most consumers are hesitant to pay $5 to $10 for a mobile game, as they are unsure what to expect,” Gupta agrees. “Despite wide-spread interest, less than 3 percent of mobile subscribers end up purchasing a mobile game from their carrier in any given month.”
Mobile advertising makes a splash
To overcome the cost barrier, especially important with the increasingly hard-to-reach youth demographic, game developers have responded with advertising subsidized or ad-supported mobile content.
“The industry is seeing that consumers have a strong preference for free or subsidized mobile games,” Gupta explains. “Almost 78 percent of consumers said they would be open to viewing advertising messages on their mobile phone, if they are relevant, pull-based and opt-in and as long as they get something of value such as free mobile games in return.”
Hovr took this idea and built a viable business model based on it, offering free mobile games supported by relevant, unobtrusive advertiser messages, Gupta says.
“Consumers find our value statement highly attractive, and users around the world have already downloaded and played tens of millions of mobile games from Hovr,” he says. “The youth market has especially taken to this idea, because they are typically more technology savvy while also being more price sensitive.” Holden explains the mobile advertising model.
“Essentially, what makes mobile advertising is that it provides the consumer with something for nothing, a concept which simultaneously provokes interest and suspicion,” Holden says. “Interest, because it means that they do not have to pay for a download. Suspicion, because they will wonder whether that content is of any value if it is being given away free of charge.”
But consumer doubt does not devalue the advantage of mobile advertising, Holden says. Partnering with advertising networks can significantly enhance public awareness levels and generate revenues on a per-click through basis. Hovr users also feel that this process is a fair exchange.
“I just don't have the cash to add more cost to my already through-the-roof cell phone bill, but I'm always traveling for work,” one user explains. “For me, Hovr makes the most sense, because I get my choice of free, fun-to-play games in exchange for just viewing an ad.”
“The ads never interrupt my game play and are a really quick alternative to me paying for a game,” says one user of his experience with Hovr. “It’s totally worth it.”
2008 and Beyond
Industry analysts predict vast improvements in the functionality and usability of mobile games in 2008.
“This year I expect we will see increased development around games that leverage the native capabilities of a mobile phone,” says Gupta. “For example, better use of the phone’s camera, games that detect hand motion and social games that use mobile phones’ communication and interactivity capabilities. In addition, graphics and audio will enhance significantly and interest in playing multi-player games will increase.”
“I expect that we will see a marked increase in the proportion of ad-funded downloads,” adds Holden. “2008 will be the year when real-time multi-player gaming takes off and we will see the proportion of titles targeting the casual gamer rise significantly.”
More titles, enhanced games, and the chance to play with and against your friends from wherever you are—sounds like the future of mobile gaming has something for everyone.
“Soon, even grandma will be playing spider solitaire at the doctor’s office,” Gupta says. “The future is now.”
About the author
A magna cum laude graduate of Mississippi State University, Grace Saad previously reported on national and world news for her college publication, The Reflector, and was published in numerous state and national publications. Saad currently works for Mobility PR and resides in Lake Oswego, Oregon, lending her journalism and public relations expertise to the mobile technology industry. Grace focuses on mobile search, VoIP, ad-supported mobile content and mobile media. Acting, backpacking, and performing music are hobbies of the 20-something Oregon-import who volunteers as a guide for Mount Hood National Forest and sings and plays piano for a local jam band.
| A MAJOR PLAY FOR MOBILE GAMES | May 20, 2008 |
A MAJOR PLAY FOR MOBILE GAMES
by Grace Saad
More than one-third of the world’s population carries a cell phone. Youth internationally are being given their first mobiles at astonishingly young ages, and it seems no demographic is safe from the idea that everyone, from a 3-year-old to a senior citizen, has an absolute need for a mobile phone.
The recent holiday season put thousands of multimedia-capable phones in the hands of consumers young and old. Which begs the question—what will customers do with their newly capable devices, other than talk?
While web surfing, taking photos and checking email rank high on the list of mobile media usage, mobile gaming is making a steady climb among consumers, according to principal analyst Windsor Holden of Juniper Research. Second only to text messaging in use among the youth demographic, mobile games are slated to create $10 billion in revenue by 2009, according to a recent Juniper study.
“Playing mobile games is the most popular mobile entertainment activity, hands down, with one in every three mobile subscribers interested in or already playing mobile games,” Gupta explains. “For most of us, our phone is the only media entertainment device we carry around. More and more people are taking advantage of idle time, while they wait in line or enjoy a break from the day, to play a casual game or two on their phone.”
Who’s playing?
When examining the typical mobile user, some common factors seem to emerge, Gupta says.
“While mobile games appeal to a wide audience, like most new and emerging entertainment outlets, the youth demographic is the first one playing games,” he says. “Almost 60 percent of people under 25 are interested in and have played mobile games.”
The market research company NPD Group agrees that gaming is most popular among children, with 84 percent playing games on a variety of platforms, and increasingly, that includes mobile.
According to an NPD study, gaming makes up 45 percent of the time children spend on digital devices, and often acts as a foot-in-the-door to kids' adoption of other digital technology. This affinity for game play will create an introduction that can lead to expanded use of digital media down the line.
It's not just children, though, who are downloading games, Gupta tells us.
Readers might also be surprised to learn that females purchase close to 50 percent of all mobile games, a figure that has often been ignored by the mobile games market says Holden.
“The key for mobile games lies in ensuring that a demographic that was somewhat underserved at the outset—the female gamer—is fully addressed,” he says.
Geographically, China and the Far East will remain the principal markets for mobile gaming in 2008, with an expected increase of nearly 100 percent, Holden explains in the Juniper report. Western Europe won't be too far behind with mobile game downloads expected to surpass ringtones in many European markets in 2008.
As varied as the mobile games user might be, the types of games available are equally so, Gupta adds.
“Overall, the puzzle games genre is the most popular. Casual games have wide appeal and games such as solitaire, Sudoku, Minesweeper, Tetris, Brick Breaker and poker remain those with the highest adoption rates,” Gupta says. “We see that younger demographics also enjoy playing the action and sports games.”
Variety is key to consumers who are trying out mobile games for the first time. Services like Hovr offer consumers a myriad of game choices in categories like casino, puzzle and sports.
Are carriers the barriers for easy game downloads?
Despite the varied options available, some industry pundits believe that the types of mobile games consumers chose are limited by their knowledge of the games themselves.
“I am, and consumers are most interested in, playing games which make the most of the strengths of the mobile platform,” says Mathew Kumar, lead blogger for GamesOnDeck. “Consumers need to be given more information about purchases, rather than just thinking, ‘I'll buy Tetris, because at least I know what that is.’”
Kumar lays most of the blame on carriers for the obstacles facing consumers in the mobile games industry.
“Purchasing or getting mobile games is irritating to say the least,” he says. “Distribution sucks. It would be really nice to see more uniform technology between handsets, at least for gaming, but I don't see it happening.”
Holden agrees that mobile gaming has many hurdles to overcome before reaching its peak.
“There is a difficulty in discovering content in the first place, in accessing that content, in navigating that content (game play) and in using multiple applications simultaneously,” he says. “Network speed and coverage is still an issue.”
But these complications are not impossible to overcome, Holden explains.
“In many cases these difficulties can be at least be partially alleviated by relatively simple solutions, increasing awareness, for example,” he says. “The marketing of mobile games is virtually non-existent, and when you consider the marketing that goes into major console games—Halo 3, for example—it’s no wonder public awareness is so low.”
Gupta also assures us that the mobile game community is quickly overcoming limitations.
The very structure and function of the cell phone is also being leveraged to counteract complications.
“There have been some games incorporating the camera phone and other native mobile functionalities,” Gupta says. “There are also more multi-player games now than ever before, and we have had great feedback from our users that the social networking capabilities of our service are important to them and keep them coming back to play and socialize more.”
In addition to the carrier and handset limitations, other important barriers to the adoption of mobile gaming include the high cost of browsing and downloading services, along with unclear price plans, Juniper reports.
“Most consumers are hesitant to pay $5 to $10 for a mobile game, as they are unsure what to expect,” Gupta agrees. “Despite wide-spread interest, less than 3 percent of mobile subscribers end up purchasing a mobile game from their carrier in any given month.”
Mobile advertising makes a splash
To overcome the cost barrier, especially important with the increasingly hard-to-reach youth demographic, game developers have responded with advertising subsidized or ad-supported mobile content.
“The industry is seeing that consumers have a strong preference for free or subsidized mobile games,” Gupta explains. “Almost 78 percent of consumers said they would be open to viewing advertising messages on their mobile phone, if they are relevant, pull-based and opt-in and as long as they get something of value such as free mobile games in return.”
Hovr took this idea and built a viable business model based on it, offering free mobile games supported by relevant, unobtrusive advertiser messages, Gupta says.
“Consumers find our value statement highly attractive, and users around the world have already downloaded and played tens of millions of mobile games from Hovr,” he says. “The youth market has especially taken to this idea, because they are typically more technology savvy while also being more price sensitive.” Holden explains the mobile advertising model.
“Essentially, what makes mobile advertising is that it provides the consumer with something for nothing, a concept which simultaneously provokes interest and suspicion,” Holden says. “Interest, because it means that they do not have to pay for a download. Suspicion, because they will wonder whether that content is of any value if it is being given away free of charge.”
But consumer doubt does not devalue the advantage of mobile advertising, Holden says. Partnering with advertising networks can significantly enhance public awareness levels and generate revenues on a per-click through basis. Hovr users also feel that this process is a fair exchange.
“I just don't have the cash to add more cost to my already through-the-roof cell phone bill, but I'm always traveling for work,” one user explains. “For me, Hovr makes the most sense, because I get my choice of free, fun-to-play games in exchange for just viewing an ad.”
“The ads never interrupt my game play and are a really quick alternative to me paying for a game,” says one user of his experience with Hovr. “It’s totally worth it.”
2008 and Beyond
Industry analysts predict vast improvements in the functionality and usability of mobile games in 2008.
“This year I expect we will see increased development around games that leverage the native capabilities of a mobile phone,” says Gupta. “For example, better use of the phone’s camera, games that detect hand motion and social games that use mobile phones’ communication and interactivity capabilities. In addition, graphics and audio will enhance significantly and interest in playing multi-player games will increase.”
“I expect that we will see a marked increase in the proportion of ad-funded downloads,” adds Holden. “2008 will be the year when real-time multi-player gaming takes off and we will see the proportion of titles targeting the casual gamer rise significantly.”
More titles, enhanced games, and the chance to play with and against your friends from wherever you are—sounds like the future of mobile gaming has something for everyone.
“Soon, even grandma will be playing spider solitaire at the doctor’s office,” Gupta says. “The future is now.”
About the author
