An amalgamation of improved technology, increased mobile connectivity and competitive affordability is paving the way for mobile games to win the race in digital gaming. With an increase in sales of tablets and smartphones, mobile gaming is not only dominating digital gaming but is also competing with more traditional hand-held games consoles. Acuity has witnessed the rapid rise of mobile games, having taken active participation in the growth of the UK mobile segment. We are attending MWC this year and are happy to meet and discuss this article or associated M&A enquiries.
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Until recently, static and hand-held video game consoles have had the upper hand as far as gaming experience is concerned, as they were the most powerful, ultimate gaming devices. However, the boundaries between tablets and dedicated gaming consoles have started to blur. With the future of both smartphones and tablets being inextricably linked to one another, mobile games performance will be reflected on how well it mirrors the peaks and troughs of these two hand-held devices. With tablets currently leading the way for more complex and expensive games that can be integrated through other devices in the home, it makes logical sense that this should drive the mobile games industry. However, with the roll out and consolidation of 4G in the UK, and the comprehensive existing base of smartphones currently in possession, it would be prudent for mobile games manufacturers to focus just as much attention on developing mobile games for smartphones and tablets, to ensure tangible uptick from the utilisation of all devices.
The surge in mobile gaming is also pressuring traditional video game vendors to consider a switch to mobile. Nintendo is one company with a tough choice in this arena, with its market share increasingly squeezed out by Microsoft and Sony. The key issue facing Nintendo is whether to continue to limit the playing of its games to its own hardware, rather than making it available to the devices of other manufacturers. The increasing prevalence of smartphones and tablets has spurred the rapid expansion of mobile gaming, and there are considerable opportunities for Nintendo to leverage its strength in video games in the development of apps for such devices. While Sony and Microsoft both produce exclusive titles for their consoles, neither has a portfolio of games as strong, and therefore as transferrable, as Nintendo’s. Moreover, Nintendo has typically targeted non-traditional gamers, key consumers for casual mobile gaming. In turn this makes it particularly vulnerable to the rise of mobile games on smartphones and tablets
Mobile games will generate more revenue than console titles in 2015, according to research specialist Newzoo. In its quarterly global games market update, the company estimates that revenues from smartphone and tablet titles will reach $25bn in 2014, up 42% on 2013, and $30.3bn in 2015. The UK is set to be at the forefront of this market transfer, with major local mobile developers such as King Entertainment driving a dynamic local mobile gaming scene.
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