Mobile Games

Overview

·         41 Pages of Exclusive Forecast Data

·         15 In-Depth Player Profiles

·         57 Unique Charts

Market forecasts by smartphones, featurephones and tablets. Exhaustive analyses of the current and calculated value of the market for mobile games are split by device, followed by categorised subsections of forecasts: installed base, annual number of downloads, in-game purchase revenues and total revenues. This granular analysis provides readers with the ability to gain a comprehensive understanding of the size, shape and direction of the sector enabling pin point planning and market strategies to be built.

A systematic approach to the gaming value chain. The report offers a detailed breakdown of the ways in which prominent vendors have changed the mobile games industry through the monopolisation of the app store and the resulting effects upon mobile applications development platforms, enabling readers to gain an unprecedented insight into the working of the app store / developer relationship.

Business models for gaming. The various models for monetising games are thoroughly explored, offering readers a closer inspection of pricing, including pay per download, in-game purchasing and freemium games, paired with marketing strategies and billing mechanisms.

Key Features of The Report Include:

·         Chapter 7, ‘Hurdles and Regulations' - addresses the challenges surrounding mobile gaming, advising developers and publishers towards overcoming OS fragmentation, network coverage challenges and piracy as well as regional regulatory concerns.

·         Projected Market for Mobile Games Advertising - examines advertising revenues generated by mobile games on handsets and tablets. Split by device type, these forecasts are calculated for in-game advertising, clickthrough & cost-per-click rates and total ads viewed.

·         15 Major Mobile Game Vendor and Distributor Profiles - offer unparalleled insight into the workings of key players in the mobile games industry, presenting their respective corporate backgrounds, key clients & strategic partnerships and products.

Table of Contents

Executive Summary

The Mobile Gaming Industry

1.1 Introduction........................... 19

1.2 Development Platforms........................ 20

1.2.1 Featurephones..................... 20

1.2.2 Smartphones.............................. 20

Table 1.1: Development Language Comparison......................... 20

Figure 1.1: OS Market Share 2011.................................. 21

Figure 1.2: Android Versions Accessing Android Market in 2011..................... 22

Figure 1.3: iPhone and iOS Compatibility....................... 22

ii. HTML5....................... 23

1.3 Business Models....................... 23

1.3.1 Pay Per Download........................ 24

i. Pricing the App............................... 24

1.3.2 Free to Download..................... 25

i. Advertising.................... 25

a. Case Study: iAd (Apple)............................ 25

b. Case Study: AdMob (Google)........................ 26

ii. Marketing......................... 27

Figure 1.4: Fishlabs's Volkswagen-Branded Games VW Polo (left) and VW
Scirocco 24 Hour Cup (Right) on the iPhone......................... 27

1.3.3 Freemium Games.................. 27

i. Types of Freemium Games................................. 27

a. Lite games......................... 27

b. In-game Purchases......................... 28

ii. Billing Mechanisms for Freemium Games................ 28

Figure 1.5: In-App Purchases Via Store Kit........................... 28

Figure 1.6: In-App Purchases via Android Market............................. 29

1.4 Delivery Technology.............................. 30

1.5 Game Genres.............. 31

1.5.1 Action Games.................. 31

Figure 1.7: Screenshots of Action Games on the Mobile...................... 31

Figure 1.8: iPhone Accelerometer........................... 32

1.5.2 Role Playing Games..................... 32

a. Case Study: Spacetime Studios' Pocket Legends.............. 32

Figure 1.9: Pocket Legends on the iPhone................. 33

1.5.3 Simulation................... 33

Figure 1.10: EA's The Sims 3 on iPhone................ 33

1.5.4 Casual Games........................ 34

a. Case Study: Rovio's Angry Birds.................. 34

Figure 1.11: Rovio's Angry Birds on the iPhone................ 35

1.5.5 Traditional Games................... 35

Figure 1.12: EAs' Monopoly (left) and The Game of Life Classic Edition
(right) on the iPhone...... 35

1.5.6 Social Games.................... 36

Figure 1.13: Zynga's FarmVille (left) and PapayaMobile's Papaya Farm
(right) on the iPhone......... 36

1.5.7 Excluded Genres............... 37

1.6 Trends in Mobile Gaming....................... 37

1.6.1 The Decline of Java and BREW....................... 38

1.6.2 Entrance of Smaller Developers............ 38

1.6.3 The Rise of Freemium Games.................... 38

Table 1.1: Top Grossing Games in Apple's App Store 2010..................... 39

1.6.4 Handset Improvements................. 39

Table 1.2: Handset Technology Development of Selected Manufacturers and
Models, 2010-2011................. 39

Figure 1.14: Distribution of Android Handset Screen Sizes and Densities...................... 40

a. Case Study: Sony Ericsson Xperia PLAY......................... 40

Figure 1.15: Sony Ericsson Xperia PLAY............... 41

Figure 1.16: Sony Ericsson's Facebook Inside Xperia................. 42

1.6.5 Tablet Developments..................... 42

a. Case Study: NVIDIA............. 43

Table 1.3: NVIDIA's Revenues ($bn) 2007-2011.................. 43

Figure 1.17: Automatic Core Switching in the Tegra 3............. 43

Figure 1.18: NVIDIA TegraZone on an Android Tablet................... 44

The Mobile Games Value Chain

2.1 Introduction............... 45

2.2 The Traditional Value Chain............... 46

2.2.1 Evaluation of Traditional Value Chain................. 46

Figure 2.1: Traditional Mobile Games Value Chain.......... 46

Figure 2.2: Mobile Games Value Web............. 46

i. Typical Billing Models.................. 47

2.3 The App Store Value Chain................. 47

Figure 2.3: The App Store Value Chain.......... 47

2.3.1 Disadvantages for MNOs................ 48

2.3.2 Benefits for Developers............ 49



2.3.3 The App Store Long Tail................ 49

2.4 Impact of the App Store Value Chain.............. 50

2.4.1 The Rise of the Freemium Model............ 50

2.4.2 Mobile Games Piracy.................. 50

2.4.3 Impact on Portable Games Consoles............ 51

Figure 2.4: Portable Games Console Sales (m units) 2005-2010............ 51

Figure 2.5: Portable Games Console Software Sales (m units) 2005-2010............ 51

a. Case Study: Sony PlayStation Vita.......... 52

Figure 2.6: Sony PlayStation Vita.................. 52

2.5 Impacts of Technology Improvements............. 53

2.5.1 The Impact of Tablets on the Mobile Gaming Market.......... 53

Figure 2.7: Example of a Triangle Mesh............... 53

Table 2.1: Comparison of Handheld Consoles to the iPad 2.................... 54

2.5.2 The Impact of Freemium on the Mobile Gaming Market............ 55

The Market for Mobile Games on Smartphones

3.1 Introduction............... 56

3.2 Methodology.................... 56

Figure 3.1: Methodology for Mobile Games Downloads and PPD Revenues............. 57



Figure 3.2: Methodology for In-Game Purchases............. 57

3.3 Market for Mobile Games Downloads........... 58

3.3.1 Global Smartphone Installed Base............ 58

Figure 3.3: Global Smartphone Installed Base (m) Split
by Region 2011-2016.................. 58

Table 3.1: Global Smartphone Installed Base (m) Split
by Region 2011-2016.............. 58

3.3.2 Smartphone Games Users and Usage............. 59

Table 3.2: Percentage of Smartphone Users who Download
Mobile Games (%)  Split by Genre
2011-2016............... 59

Figure 3.4: Number of Smartphone Users who Download
Mobile Games (m) Split by Genre 2011-2016..................... 59

Table 3.3: Number of Smartphone Users who Download
Mobile Games (m) Split by Genre 2011-2016....................... 60

Table 3.4: Number of Downloads Per User Per Annum from
Smartphones Split by Genre 2011-2016....................... 60

Figure 3.5: Total Mobile Games Downloads from
Smartphones (m) Split by Genre 2011-2016.................... 61

Table 3.5: Total Mobile Games Downloads from
Smartphones (m) Split by Genre 2011-2016............... 61

Table 3.6: Percentage of Downloads which are
Pay-Per-Download from Smartphones (%) 
Split by Genre 2011-2016..................... 62

Figure 3.6: Number of Pay-Per-Download Mobile Games
Downloads from Smartphones (m) Split by Genre 2011-2016..................... 62

Table 3.7: Number Pay-Per-Download Mobile Games
Downloads from Smartphones (m)  Split by
Genre 2011-2016................... 63

Table 3.8: Average Price per Download from Smartphones
($) Split by Genre 2011-2016......... 63

Figure 3.7: Total Download Revenues from Smartphones
($m) Split by Genre 2011-2016............ 64

Table 3.9: Total Download Revenues from Smartphones
($m) Split by Genre 2011-2016.......... 64

3.3.3 Market for In-Game Purchases on Smartphones............... 65

Table 3.10: Percentage of Downloaders who buy In-Game
Purchases from Smartphones (%)  Split by
Genre 2011-2016.................... 65

Figure 3.8: Number of Downloaders who buy In-Game
Purchases from Smartphones (m)  Split by
Genre 2011-2016................. 65

Table 3.11: Number of Downloaders who buy In-Game
Purchases from Smartphones (m) Split by Genre 2011-2016.................... 66

Table 3.12: Average Spend Per User Per Annum from
Smartphones ($) Split by Genre 2011-2016..................... 66

Figure 3.9: Total In-Game Spend from Smartphones (m)
Split by Genre 2011-2016....................... 66

Table 3.13: Total In-Game Spend from Smartphones (m)
Split by Genre 2011-2016.................... 67

3.3.3 Mobile Games Market on Smartphones.................. 67

Figure 3.10: Total Revenues from Smartphones (m) Split
by Genre 2011-2016............ 67

Table 3.14: Total Revenues from Smartphones (m) Split
by Genre 2011-2016.................... 68

The Market for Mobile Games on Featurephones

4.1 Introduction and Methodology............... 69

4.2 Market for Mobile Games Downloads................. 69

4.2.1 Global Featurephone Installed Base............. 69

Figure 4.1: Global Featurephone Installed Base (m)
Split by Region 2011-2016............. 69

Table 4.1: Global Featurephone Installed Base (m) Split
by Region 2011-2016.................. 70

4.2.2 Featurephone Games Users and Usage................. 70

Table 4.2: Percentage of Featurephone Users who
Download Mobile Games (%)  Split by Genre
2011-2016...................... 70

Figure 4.2: Number of Featurephone Users who Download
Mobile Games (m)  Split by Genre
2011-2016........................ 71

Table 4.3: Number of Featurephone Users who Download
Mobile Games (m) Split by Genre 2011-2016.................... 71

Table 4.4: Number of Downloads Per User Per Annum from
Featurephones Split by Genre 2011-2016.................. 72

Figure 4.3: Total Mobile Games Downloads from
Featurephones (m) Split by Genre 2011-2016........................ 72

Table 4.5: Total Mobile Games Downloads from
Featurephones (m) Split by Genre 2011-2016.................... 73

Table 4.6: Percentage of Downloads which are
Pay-Per-Download from Featurephones Split by Genre 2011-2016 (%)................. 73

Figure 4.4: Number of Pay-Per-Download Mobile Games
Downloads from Featurephones (m)  Split
by Genre 2011-2016.............. 74

Table 4.7: Number Pay-Per-Download Mobile Games
Downloads from Featurephones (m)  Split
by Genre 2011-2016............. 74

Table 4.8: Average Price Per Download from
Featurephones (%) Split by Genre 2011-2016............. 75

Figure 4.5: Total Download Revenues from Featurephones
($m) Split by Genre 2011-2016................ 75

Table 4.9: Total Download Revenues from Featurephones
($m) Split by Genre 2011-2016................. 75

The Market for Mobile Games on Tablets

5.1 Introduction and Methodology................. 77

5.3 Market for Mobile Games Downloads on Tablets............... 77

5.3.1 Global Tablet Installed Base............ 77

Figure 5.1: Global Tablet Installed Base (m) Split by
Region 2011-2016............. 77

Table 5.1: Global Tablet Installed Base (m) Split by
Region 2011-2016.................. 78

5.2.2 Tablet Games Users and Usage................. 78

Table 5.2: Percentage of Tablet Users who Download
Mobile Games (%) Split by Genre 2011-2016................. 78

Figure 5.2: Number of Tablet Users who Download Mobile
Games (m) Split by Genre 2011-2016..................... 79

Table 5.3: Number of Tablet Users who Download Mobile
Games (m) Split by Genre 2011-2016..................... 79

Table 5.4: Number of Downloads Per User per Annum from
Tablets Split by Genre 2011-2016................... 79

Figure 5.3: Total Mobile Games Downloads from Tablets
(m) Split by Genre 2011-2016.............. 80

Table 5.5: Total Mobile Games Downloads from Tablets
(m) Split by Genre 2011-2016............. 80

Table 5.6: Percentage of Downloads which are
Pay-Per-Download from Tablets (%)  Split
by Genre 2011-2016.............. 81

Figure 5.4: Number of Pay-Per-Download Mobile Games
Downloads from Tablets (m)  Split by
Genre 2011-2016.............. 81

Table 5.7: Number of Pay-Per-Download Mobile Games
Downloads from Tablets (m)  Split by
Genre 2011-2016.................. 82

Table 5.8: Average Price Per Download from Tablets (%)
Split by Genre 2011-2016.................. 82

Figure 5.5: Total Download Revenues from Tablets ($m)
Split by Genre 2011-2016...................... 83

Table 5.9: Total Download Revenues from Tablets ($m)
Split by Genre 2011-2016..................... 83

5.2.3 Market for In-Game Purchases on Tablets............... 84

Table 5.10: Percentage of Downloaders who Make In-Game
Purchases from Tablets (%)  Split by
Genre 2011-2016................ 84

Figure 5.6: Number of Downloaders who Make In-Game
Purchases from Tablets (m)  Split by
Genre 2011-2016.................... 84

Table 5.11: Number of Downloaders who Make In-Game
Purchases from Tablets (m)  Split by
Genre 2011-2016.............. 85

Table 5.12: Average Spend per User per Annum ($) from
Tablets Split by Genre 2011-2016................ 85

Figure 5.7: Total In-Game Spend from Tablets (m) Split
by Genre 2011-2016............................. 85

Table 5.13: Total In-Game Spend from Tablets (m) Split
by Genre 2011-2016...................... 86

3.3.3 Mobile Games Market on Tablets...................... 86

Figure 5.8: Total Revenues from Tablets (m) Split by
Genre 2011-2016................. 86

Table 5.14: Total Revenues from Tablets (m) Split by
Genre 2011-2016....................... 87

The Market for Mobile Games Advertising

6.1 Introduction and Methodology................ 89

Figure 6.1: Methodology for Mobile Games Advertising Revenues............... 89

6.2 Mobile Games Advertising Forecasts for Handsets.................................... 90

Table 6.1: Percentage of Games Downloaded Featuring
In-App Advertising on Handsets (%)  Split
by Region 2011-2016............. 90

Figure 6.2: Number of Games Downloaded Featuring
In-Game Advertising on Handsets (m) Split by Region 2011-2016.................. 90

Table 6.2: Number of Games Downloaded Featuring In-Game
Advertising on Handsets (m) Split by Region 2011-2016.................... 91

Table 6.3: Number of Advertisements per Download on
Handsets Split by Region 2011-2016.................... 91

Figure 6.3: Total Ads Viewed on Handsets (m) Split by
Region 2011-2016........................... 92

Table 6.4: Total Ads Viewed on Handsets (m) Split by
Region 2011-2016...................................... 92

Table 6.5: Clickthrough Rates on Handsets (%) Split by
Region 2011-2016.................................... 93

Figure 6.4: Total Clickthroughs on Handsets (m) Split
by Region 2011-2016................................... 93

Table 6.6: Total Clickthroughs on Handsets (m) Split by
Region 2011-2016.................................. 94

Table 6.7: Average Cost per Clickthrough on Handsets
(%) Split by Region 2011-2016.............. 94

Figure 6.5: Total Advertising Spend on Handsets ($m)
Split by Region 2011-2016......................... 95

Table 6.8: Total Advertising Spend on Handsets ($m)
Split by Region 2011-2016........................ 95

6.2 Mobile Games Advertising Forecasts for Tablets....................................... 96

Table 6.9: Percentage of Games Downloaded Featuring
In-App Advertising on Tablets (%) Split by Region 2011-2016.................. 96

Figure 6.6: Number of Games Downloaded Featuring
In-Game Advertising on Tablets (m)  Split
by Region 2011-2016.................... 96

Table 6.10: Number of Games Downloaded Featuring
In-Game Advertising on Tablets (m)  Split
by Region 2011-2016.................. 97

Table 6.11: Number of Advertisements Per Download on
Tablets Split by Region 2011-2016................... 97

Figure 6.7: Total Ads Viewed on Tablets (m) Split by
Region 2011-2016............................ 98

Table 6.12: Total Ads Viewed on Tablets (m) Split by
Region 2011-2016....................................... 98

Table 6.13: Clickthrough Rates on Tablets (%) Split by
Region 2011-2016..................................... 99

Figure 6.8: Total Clickthroughs on Tablets (m) Split by
Region 2011-2016....................................... 99

Table 6.14: Total Clickthroughs on Tablets (m) Split by
Region 2011-2016................................. 100

Table 6.15: Average Cost per Clickthrough on Tablets
(%) Split by Region 2011-2016............. 100

Figure 6.9: Total Advertising Spend on Tablets ($m)
Split by Region 2011-2016........................... 101

Table 6.16: Total Advertising Spend on Tablets ($m)
Split by Region 2011-2016....................... 101

Hurdles and Regulations

7.1 Introduction..................... 103

Table 7.1: Hurdles in the Mobile Games Market.................. 103

7.2 Regulatory and Legal Developments.................... 104

7.2.1 Patent Lawsuits......................... 104

7.2.2 South Korea Game Rating Regulations.............. 104

7.2.3 Possible USA Games Rating Regulations..................... 104

7.3 Development Hurdles...................... 105

7.3.1 OS Fragmentation.................... 105

7.4 Distribution Hurdles......................... 105

7.4.1 App Store Crowding..................... 105

7.4.2 Freemium Games...................... 106

7.4.3 Piracy............................ 106

7.5 Hurdles for MNOs....................... 107

7.5.1 Tiered Data Plans...................... 107

7.5.2 Network Coverage......................... 107

7.6 Content Regulation................. 107

7.6.1 App Store Content Ratings..................... 107

Corporate Profiles

8.1 Developers and Publishers............. 109

8.1.1 Activision............ 109

Table 8.1: Activision Blizzard's Total Revenues ($m) 2007-2011.............. 110

Figure 8.1: Activision's Crash Bandicoot Nitro Kart 3D on the iPhone.............. 110

8.1.2 Com2uS.................... 111

Table 8.2: Com2uS Total Revenue, Operating Income and Net Income ($m) 2007-2011......... 111

Figure 8.2: Com2uS's Tower Defense: Lost Earth on the iPhone..................... 112

8.1.3 Digital Chocolate................... 113

Figure 8.3: Digital Chocolate's Crazy Catapult Penguin on the iPhone............... 113

8.1.4 EA........................ 114

Table 8.3: Electronic Arts, Inc. Global Revenues ($m) Split by Category  (Total Console, PC, Total Wireless, Mobile & Licensing) 2008-2012.................. 114

Figure 8.4: Screenshot of EA Mobile's Madden NFL 12................ 115

8.1.5 Firemint............... 116

Figure 8.5: Firemint's Flight Control (left) and Real Racing (right) on the iPhone.................. 117

8.1.6 Fishlabs............ 118

Figure 8.6: Fishlabs' Galaxy On Fire (left) and Galaxy on Fire 2 (right) on the iPhone................. 119

8.1.7 Gameloft................ 120

Table 8.x: Gameloft's Total Revenue, Operating Income and Net Income ($m) 2007-2011...... 120

Figure 8.7: Modern Combat 3: Fallen Nation on the iPhone................... 121

8.1.8 Gamevil.............. 121

Table 8.5: Gamevil's Sales, Operating Income and Net Income ($m) 2008-2011.................. 121

Figure 8.8: Baseball Superstars 2011 (left) and Colosseum Heroes (right) on the iPhone............. 122

8.1.9 Glu Mobile................. 123

Table 8.6: Glu Mobile's Revenues ($m) 2008-9M 2010............ 123

Figure 8.9: Glu Mobile's and Super KO Boxing 2 (right) on the iPhone.................... 123

8.1.10 Take-Two Interactive Solutions (2K Games and Rockstar Games)...................... 124

Table 8.7: Take-Two Interactive Solutions Inc. Total Revenue ($m) and Net Income ($m) 2007-2011.................. 124

Figure 8.10: 2K Games' Civilisation Revolution (left) and Rockstar Games' Grand Theft Auto: Chinatown Wars HD (right) on the iPhone................ 125

8.2 Distributors.............. 126

8.2.1 Apple................. 126

Table 8.8: Apple's Revenue and Net Income ($bn) 2007-2011............. 126

iPhone.................. 127

Table 8.9: Evolution of Apple's iPhone................... 127

iPad................ 127

Table 8.10: Evolution of Apple's iPad............... 127

App Store...................... 128

8.2.3 Google.............. 129

Table 8.11: Google Inc. Revenue ($bn) Split By Type of Revenue (Total Advertising, Web Sites, Network Web Sites, Licensing and Other Revenues) 2007-2011................. 129

Android....................... 129

Android Market............. 130

8.2.3 Nokia................... 130

Table 8.12: Nokia's Net Sales ($bn) 2007 to Q3 2011............... 130

Symbian................... 131

Ovi................ 131

8.2.4 GetJar................... 131

Business Model............... 132

8.2.5 Amazon................. 132

Appstore........... 132

Kindle Fire.............. 133

 

Companies Referenced

Profiled

Activision, Amazon, Android Market, Apple, Com2uS, Digital Chocolate, EA, Firemint, Fishlabs, Gameloft, Gamevil, GetJar, Glu Mobile, Google, Nokia, NVIDIA, Sony Ericsson, Take-Two Interactive Solutions

Mentioned

Adobe, AdMob, Amobee, Asus, AT&T, Capcom, Capybara Games, Chillingo, Facebook, Firemint,  Glu, Handango, HTC, Microsoft, Moblyng, Motorola, PapayaMobile, Pixelgame, Quattro Wireless, RIM, Rovio, Samsung, Sony, Spacetime Studios, Sprint, Take-Two Interactive, Tapjoy, T-Mobile, US Cellular, ustwo, Valve, Verizon, Zynga