Mobile gaming and smartphones bringing nontraditional players into the gaming audience

Almost one-third of people in the U.S. over 13 play mobile games monthly, and the number of gamers in older demographics more than doubled since 2007, according to Parks Associates.

The international research firm's new report Mobile/Portable Gaming: Market Updates finds the user base for gaming has expanded into nontraditional segments thanks to the popularity of mobile apps and titles such as Rovio’s Angry Birds. These changes will also force creation of new business models to generate revenues, with in-app purchases currently the most successful. This model provides the game for free and creates revenue streams by selling expansions or enhancements within the game, which helped Rovio reach over $70 million in revenues for Angry Birds.

“Traditional game companies have expressed concerns about mobile gaming devaluing the market, but in reality, mobile gaming has increased the overall user base and attracted new demographics," said Pietro Macchiarella, Research Analyst, Parks Associates. "The broad appeal of mobile games such as Angry Birds, Fruit Ninja, and Words with Friends and increasing ease with which people can download them have attracted less traditional gamers, including a growing number of older players and females.”

Penetration of smartphones and tablets, competition in app marketplaces, and better payment methods have also fueled growth. The challenge for next-generation portable consoles, the Nintendo 3DS and the PlayStation Vita, is to appeal to this larger audience and migrate more casual gamers to their platforms.

“People are already adopting smartphones in large numbers, and low-priced games and the freemium model are incentivizing them to try out mobile games," Macchiarella said. "However, these business models, even if implemented on portable consoles, will not drive consumers to buy new devices. Instead, people follow valuable content. If popular mobile titles are ported to dedicated gaming devices and enhanced with better graphics, controls, and storylines, manufacturers such as Sony and Nintendo will be able move loyal mobile gamers to their new platforms."

Mobile/Portable Gaming: Market Updates analyzes the current state of the mobile gaming and portable gaming industries, including new developments, business models, monetization opportunities, and five-year revenue forecasts. The report also analyzes consumer behavior and trends. For more information, visit www.parksassociates.com or contact [email protected], 972-490-1113.

About Parks Associates: Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates provides business intelligence and research services through its proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households.

The company's expertise crosses many industries: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets.

Each year, Parks Associates brings thousands of leaders together for its webinars and annual events. The firm hosts the annual executive research and strategy conferences CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. https://www.parksassociates.com
 

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