The second quarter of 2007 showed that revenue for title publishers in the mobile gaming market declined by 9%, compared with 11% growth in the first quarter, according to a report by iSuppli.
This is despite the fact that revenue for the sector is expected to almost triple in the next four years, growing from $2.3 billion in 2006 to around $6.6 billion in 2011, the report says.
iSuppli attributes the drop in revenue to a lack of understanding on issues like connectivity, how to download the games and the lack of the competition or multiplayer option in most mobile games.
Riaan Groenewald, Multimedia Solutions operational director, says local mobile gaming received a boost in 2005 when a national mobile gaming competition was held and four players were sent to the World Cyber Games.
"The team did very well, with one member taking home a gold medal. Due to technology issues, mobile gaming was then dropped from the World Cyber Games. The 2005 team remains the only team in SA to have been awarded colours and who have competed internationally," he states.
Mobile gaming is new compared to PC and console gaming, and the lack of promotion by game publishers and developers means it still has poor visibility within the market, continues Groenewald.
Finding the answer
Corporates looking to use mobile gaming as part of their mobile marketing strategy may be the answer to mobile gaming`s problems, he says.
"The latest mobile games which have multiplayer functionality also facilitate the placement of advertising during game play. In a racing game, for example, there are billboards down the side and over the track. Each of these billboards can now be independently controlled, with different advertisements placed on each banner."
Adverts for the company, partners or clients can be placed in the game and detailed reporting provides cumulative viewing times for each banner, he adds.
Groenewald says mobile games are being used by companies as a value-add. Games are offered free to customers, and prizes put on offer for those who score highest in the game.
Companies extend their brands through advertising displayed when the game is played, and in turn, consumers get a free game and the chance to win prizes.
Johann Von Backstr"om, founder of the Amateur Gaming Association of South Africa, says: "There are 40.7 million active SIM cards in SA and close to 2.5 billion active cellphones worldwide, indicating that the mobile market is the most dominant communication medium.
"If a corporate was to offer, for example, 100 000 free games to its customers, promote the campaign and offer prizes to the best players, it would go a long way to creating awareness of mobile gaming," says Backstr"om.
This would result in more people playing mobile games, and the country would be able to build on the success of the World Cyber Games in 2005, he adds.
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