Mobile gaming is changing from its early days of rip-offs of classic, low-tech 2D games and ugly 3D games that are too ambitious for the platform. As a gaming platform it's gaining momentum in a big way
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You just have to look at the recent $680 million Electronic Arts-Jamdat merger to see that game publishers are recognizing the potential of a user-base clocking in at nearly 2 billion worldwide.
FROM SNAKE TO TRANSMEDIAL ACCESS. The first-ever mobile phone game was the black-and-white Snake embedded in the Nokia 6110 model in 1997. The gameplay was simple, as you led led the "snake" (really just a thick line) around the screen to collect dots. Mobile gamers would remain color blind until 2001, when Nokia introduced the first color screens; a major step in the presentation of mobile games.
Today, mobile phones can come with displays capable of 262,144 colors, and can be upgraded to a couple gigs of memory. Development technologies have also improved with the introduction of Java 2 Micro Edition (J2ME) and Binary Runtime for Wireless (BREW).
Equally important to mobile gaming have been advancements in networking capabilities. Early games such as Snake actually had a multiplayer mode that used an infrared interface, and other early games transferred data to and from servers for games like checkers and reversi.
Today, real-time server-based network gaming is helping bring more complex and interactive gameplay like that found in Bejeweled Multiplayer, published by Jamdat. Networking advancements continue, as wireless entertainment publisher SkyZone Entertainment announced that the mobile version of Ragnarok Online would allow users to interface with their PC accounts.
A RAPIDLY GROWING BUSINESS. The mobile gaming market may have started with Nokia, but it is currently dominated by publisher Jamdat, which was founded in 2000. (Ironically, Jamdat's first mobile game was Snake as well.) Market share is quite lopsided to say the least, with Jamdat claiming a stake in nearly one-third of the market at 31 percent and total 2005 revenues expected to hit $80 million. EA is hoping that its sizable acquisition of Jamdat will put it on top of the mobile gaming food chain.
"This is an important strategic acquisition for Electronic Arts," said EA CEO Larry Probst. "Together we intend to build a leading global position in the rapidly growing business of providing games on mobile phones."
Namco comes in at a distant second place to Jamdat, raking in nine percent of mobile gaming revenues, according to a recent report from performance information provider Telephia. The company hasn't hesitated to reach into its chest of classic brands that are ideal for mobile gaming, such as Pac-Man and Galaga.
The top three of mobile games publishing is rounded out by Mforma, capturing four percent of revenues. In late 2004, a deal between Marvel and Mforma underscored the growing relevance of the mobile gaming market when the comic book publisher signed a licensing agreement that allowed Mforma to use characters such as Spider-Man, X-men, Ghost Rider and the Fantasic 4, all of which just happen to have major motion picture ties. According to an interview with the Seattle Post-Intelligencer, Mforma is on the rise, growing 20 percent every month. In order to maintain that type of growth, mobile companies need to figure out how to get the word out about their products.
"It is obvious to everybody across many industries that this is a very important sea change," said John Sacks, former president of AOL Interactive Services and currently president and COO of Mforma. "But no one really understands how you advertise to people on their cell phones and how you deliver media to people on their cell phones. This is the challenge to us. We have to figure that out. And we have to figure it out in a world where a lot of other people are trying to figure it out as well."
Other major mobile gaming players include Gameloft, the top mobile publisher in Europe, and Glu Mobile, which is publishing versions of Atari titles such as Marc Ecko's Getting Up and Driv3r.
HINDRANCES TO GROWTH. A recent study from consumer games publication IGN Entertainment reported that there are 160 million cell phone users in the U.S. alone, and according to Nokia, there are 2 billion cell phone users worldwide. Mobile gaming is even developing a dedicated fanbase, with the most avid mobile gamers upgrading cell phones twice a year or switching carriers in order to experience the latest in mobile gaming. While a 2 billion unit installed base looks great on paper, there are significant limitations to reaching that audience. One is that not all games are compatible with all phones. It's not just a hardware issue, either. Even if you have a cutting-edge cell phone capable of playing the latest games, if your carrier doesn't offer it, you can't buy it, and game companies won't see your money. Carrier-publisher relations are crucial for revenues to meet full potential.
As mentioned earlier, there is also considerable difficulty in efficiently advertising mobile entertainment content to customers through their handsets. In addition, while mobile technology has come a long way since Snake, mobile processing power is absolutely blown away by handhelds like the Sony PSP and Nintendo DS, which leaves many avid gamers opting not to even bother with phone-based games. The fact that Tetris is the number one downloaded Jamdat game echoes the fact that mobile games cater to the casual audience; a trait that can actually be considered a huge advantage for the platform.
THE RIGHT BUSINESS. Although EA's acquisition of Jamdat has become a blatant signal that mobile gaming is a serious business for traditional game publishers, other console and PC publishers seem to be missing the boat. Next Generation recently reported on a study by Screen Digest that showed traditional game publishers are falling considerably behind in the mobile gaming arena when compared to dedicated companies such as Jamdat and Mforma. At this point, any publisher outside of EA has set themselves up for an uphill battle in the mobile sector.
It has become fairly obvious that mobile gaming is the next frontier in portable gaming, as worldwide mobile games download revenue is set to hit $8.4 billion by 2010, according to the Screen Digest study.
"I only have one style, which is I want to make more money," Mforma's Sacks said earlier this year. It seems that he's in the right business.
By Kris Graft
Provided by Next Generation - Interactive Entertainment Today
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