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The Importance of the iPhone App Store for Mobile Games

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Juniper Research recently released a study that looks at the mobile gaming landscape now and into the future.  They predict, among other things, that revenue from mobile games will reach a whopping $10 billion by 2013 and that more than 460 million games will be downloaded, an increase that represents twice the rate of today.

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What is particularly telling, though, is how Apple’s platform and App store is transforming the business of game development:

  • “The revenue share offered by Apple to games publishers is incredibly attractive. The danger is that if operators do not respond with a similar business model, publishers faced with low margins may simply exit Java completely, thereby reducing consumer choice in the longer term.”

Apple offers a revenue share of 70% with developers.  This is in stark contrast to another finding of the report: while ad-funded downloads are growing in popularity, the revenues accrued from advertising are unlikely to be sufficient for developers or operators.  Basically, the old models are failing and Apple’s model could emerge as the only game in town.

Aside from what this means for Apple, there were some other interesting findings, primarily that in developing nations gaming on mobile phones is growing due to lack of internet connectivity and actual gaming consoles.  Some other key points:

  • China and the Far East will remain the largest regional market for mobile games throughout the period covered by the report.
  • Global revenues from in-game advertising will rise significantly from 2008 to 2013.
  • Operators need to reduce data charges further for out of bundle customers to encourage casual mobile Internet usage and thereby stimulate the mobile entertainment market

Looks like mobile entertainment will only grow.

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One Response to “The Importance of the iPhone App Store for Mobile Games”

  1. The Importance of the iPhone App Store for Mobile Games Says:

    [...] Random Feed wrote an interesting post today onHere’s a quick excerptJuniper Research recently released a study that looks at the mobile gaming landscape now and into the future. They predict, among other things, that revenue from mobile games will reach a whopping $10 billion by 2013 and that more than 460 million games will be downloaded, an increase that represents twice the rate of today. What is particularly telling, though, is how Apple’s platform and App store is transforming the business of game development: “The revenue share offered by Apple to ga [...]

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