Reader’s Questions: Money in Mobile Gaming

As the mobile gaming industry is gaining more momentum and more attention, there are many who have unanswered questions, as raised by readers of my previous post, Got Game? Online and Mobile Gaming Proving to be Recession-Proof. While there are several variables to consider when investing in any start-up, some can be absolutes and others will be best educated guesses. The same is true for online and mobile gaming.

One thing that we know for sure is that this area of industry offers significant opportunity. One of the main reasons is the considerable growth in mobility for consumers around the world. At the same time, telecommunications infrastructures are emerging in areas where technology was never a priority, opening new markets and creating significant opportunities.

Why does Asia lead in such initiatives?

I’ve noticed that Asia tends to take the lead in these types of trends, much more so than the United States or Europe. Any idea why that might be? …

Originally posted as a comment by tongyun on Venture Hype using Disqus.

Asia tends to often take the lead on technology trends, especially when compared to the United States and Europe. In this area specifically, the infrastructure of a country or region’s telecommunications will either advance or limit its ability to lead in this sector. In a global comparison, more advanced and richer countries with smaller territories consistently have the leading edge over those with a larger territory or poor telecommunications networks. [1]

Swift broadband uptake in Asia driving adoption:

Telecommunication companies in Asia have invested heavily in broadband connections because there is a huge demand for it and a promising return of investment. Due to the rise of number of broadband connections, the cost of having a broadband connection also started to fall and attracted a lot of new subscribers. I think prices of broadband connections will continue to drop, and investing on online games right now is still a good choice.

Originally posted as a comment by cirereyes on Venture Hype using Disqus.

The swift adoption of broadband in Asia is also a significant contributing factor to the mobile gaming options available in the region. In fact, according to Forrester Research, the United States ranks behind South Korea, Hong Kong, the Netherlands, Canada, Japan, Sweden and metropolitan China in terms of broadband adoption. The Chinese tend to be the leading adopters of entertainment-oriented activities such as playing games, representing significant opportunity for investment and development. [2]

Is the high level of competition a barrier to entry?

… business on games is the business with high level of competition.

Originally posted as a comment by vlada on Venture Hype using Disqus.

While gaming is an absolute sure business, it is important to have the right strategy in place. It is also absolutely necessary to identify interoperability and targeting strategies to be sure the applications developed can reach a wide audience. In addition, longevity will depend upon the game’s appeal, ability to be addictive – in other words, is it fun and increasingly competitive – and the potential to spread. Those games that gain popularity through social networking can hold significant investment promise. Sure, the area is competitive, but competition can be the best driver for concentrated growth.

Is the gratification from gaming enough to be sustainable?

I think the gratification from playing video games is worth the expense to the gamers and may provide an escape from financial considerations for a while.

Originally posted as a comment by Ricardo on Venture Hype using Disqus.

Gaming market is certainly on the boom. I had personally witnessed how much growth and profit the gaming sector can achieve. Even now the market for games are going strong as there would always be people interested in buying games irrespective of the economic situation that prevails around them.

Originally posted as a comment by knight on Venture Hype using Disqus.

Part of the market appeal of video games, both mobile and online, is the wide range of options in terms of price, commitment and entertainment. From free to subscription platforms, consumers can determine just how committed they want to be to participating in these games. When there is a social element involved – such as playing with friends located in other parts of the world – the likelihood of adoption is much greater as popularity is created and spread by the users, especially if they can cash in on their referrals.

There are a number of assumptions surrounding the online and mobile gaming industry, the most important of which is that the “casual gamer” presents significant opportunity all over the world. Sure, the specifics have to be outlined and projections could be generous when examining certain parts of the world, but even when considering an average margin of error, the opportunity is still significant.

Notes:

[1] More advanced nations lead Asia’s Information Technology market

[2] China Ahead Of US In Broadband Adoption; Forrester Extends Its Consumer Technology Research To Asia Pacific