Downloadable Cellphone Games Provide Gateway to $7 Billion Opportunity

Strategy Analytics has released a new report that is advising wireless operators to leverage their billing assets in order to develop both retail and wholesale games download strategies, and maximize gaming returns.

Senior Analyst, Nitesh Patel, suggests, "Carriers can capitalize on their pre-eminence within the service delivery chain if they develop flexible tariff approaches which smoothly pass significant proportions of revenue back to IP owners, games developers and publishers. In both of these respects, carriers' investment and choice of charging platforms will prove crucial determinants of success."

By 2008, Wireless games will generate revenues in excess of US$7 Billion, with downloadable Java and BREW games both offering the greatest potential for growth. The emphasis on browser-based games and text games will fade from the games developer community and consumers horizons, as users become seduced by branded downloadable games that are available for their multimedia handsets.

David Kerr, Vice President of the Strategy Analytics Global Wireless Practice, adds, "Decisions to develop both retail and wholesale strategies for games is a key turning point in the industry. These decisions will enable operators to focus on increasing sales from their own brand of retail games services, while allowing them to use their billing platforms as a strategic asset to earn revenues from the wider growth of the games market."

Posted to the site on 11th April 2003