Mobile Gaming Market To Hit $10 Billion By 2014

The worldwide market for mobile gaming is expected to be worth a whopping $10 billion (£6.3 billion) by 2014, according to a new industry report.

A new report published today by Futuresource Consulting forecasts, unsurprisingly, huge and sustained growth in the mobile gaming sector over the next three years.

Mobile Gaming Market 2014

The popular Apple App store is predicted to generate $1.7 billion in revenue this year,  which accounts for around 30% of total spend in the mobile games market in 2010 – and that’s without taking into consideration any iPad sales.

Futuresource forecast that in-apps payments will be a key area for growing the revenues generated by mobile gaming.

“There is no doubt that paid-for apps games are leading the gaming charge,” said Patrik Pfandler, Lead Mobile Analyst at Futuresource.

“Our forecasts show apps-based gaming will account for more than 95% of total mobile gaming revenues by 2014 – that’s despite the glut of free apps games out there.

“The growth of in-apps payments is a key ingredient in the commercial success of apps gaming.

“In the short term we’ll see the rise of the ‘freemium’ business model, where the game is downloaded for free, but incorporates micro-transactions and virtual currencies, encouraging users to unlock additional features, new levels and premium content.

“In the longer run, we’re going to see ad-funded apps games start to gain more traction as well.”

Over the last few years, the rapid growth of the smartphone market has been the primary reason for the huge explosion in the mobile games and apps, “with high quality touchscreens, powerful programmable processors, improved graphics and cameras, increased storage, accelerometer and GPS all becoming standard and all making their contribution to an improved mobile gaming experience.”