CSMG, the strategy division of TMNG Global (Nasdaq:TMNG) released a report on the global
video games market and its impact on mobile and fixed service
providers, entitled: Playing Games: A Revolution In Interactive
Entertainment.
Fueled by increased network access, faster broadband
speeds, next-generation consoles and more capable mobile devices, the
dramatic growth in the video games market presents tremendous
opportunities for service providers to capture greater share of this
market, according to CSMG.
The report finds that the global gaming industry is expected reach
$40 billion in annual revenues by 2012. By comparison, U.S. gaming
software sales reached $20 billion in 2008 from $9.4 billion in 2005.
Mobile games represents the fastest growing segment with a 24.6% (CAGR)
compound annual growth rate forecasted for 2007 through 2012. The
average age of a gamer has increased to 33 years and female gamers now
reach almost 50 percent across many types of games.
"Despite the current economic downturn, gaming has proven to be
resilient in these trying times and is the leading entertainment
segment that is fueling growth," said Rich Nespola, Chairman and CEO of
TMNG Global. "The expansion of casual games, simpler user interfaces
and the proliferation of innovative business models is broadening the
gamer demographic. The timing is ripe for service providers to hedge
the business cycle by capturing the robust opportunities to grow the
mobile gaming market."
According to CSMG, 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. Furthermore, service providers
can leverage its network to offer value added services such as VoIP and
IP chat to enhance the consumer experience and drive adoption.
"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," said Armaghan Farooq, Manager, CSMG.
The report finds that the standardization of mobile software
platforms presents the biggest opportunity for service providers in
capturing a greater share of mobile gaming. Operators have the
opportunity to create a standards based mobile gaming marketplace. This
approach will encourage and incent the mobile gaming developer base,
with the potential to accelerate market growth by increasing gamer
penetration, gaming ARPU (average revenue per user), on-deck/off-deck
purchases and operator and developer revenue share.
The report is based on executive interviews with major service
providers, gaming industry players and additional value chain
participants as well as qualitative and quantitative strategic analysis
of emerging trends and its impact on the gaming market. The study aims
to identify specific opportunities for service providers, both mobile
and fixed, to benefit from the growth in gaming by evaluating market
trends and identifying specific opportunities that generate tangible
results in the short to medium term.
To view the full report, visit www.csmg-global.com.