Wireless Games Worth over US$3.5 Billion in 2006 - Report

According to a new Yankee Group report, United States consumers in 2006 will spend approximately US$500 million on wireless games, Europeans will spend about US$1 billion, and Asians will spend more than US$2 billion. However, wireless games will represent only about 20% of wireless entertainment services and 5 to 10% of premium content revenue in each geographic market.

"Carriers must determine how best to work with aggregators, and when it is worthwhile to deal directly with media and entertainment companies," says Adam Zawel, Yankee Group Wireless/Mobile Enterprise & Commerce director. "While creating new partnerships and pricing models, carriers must allay content providers' fears about digital rights management (DRM), and prepare to succeed as Kazaa-type services spread to wireless."

"Gaming and media companies and vendors trying to enable mobile entertainment services must adapt their business models to the wireless medium. Their models must include minimum returns for the carriers. Carrier network costs are decreasing rapidly, enabling the delivery of more applications over wireless at reasonable premiums compared to non-wireless prices," says Zawel."

Posted to the site on 23rd September 2003