25 November 2005

Mobile Online Gaming In Asia Pacific Growing

Mobile online gaming in the Asia Pacific region, excluding Japan, will continue to grow at a steady pace, thanks to internet ready handsets, according to research.

The key factors contributing to the industry's development are the proliferation of affordable, high-resolution, and Internet-ready handsets and the development of more compelling game content, according to a new study from market research company IDC.

“As mobile penetration in the Asia Pacific (excluding Japan) region continues to rise, and as users continue to consume more feature-rich media, mobile online gaming will continue to experience growth,” says Jun-Fwu Chin, Senior Analyst, Software, IDC Malaysia.

However, the the fledgling industry isn’t without its barriers. “Imbalanced revenue sharing models between carriers and game developers, and the prevailing mindshare of Asia/Pacific users that mobile handsets are simply communication devices and not entertainment gadgets are among the fundamental issues that need to be addressed for widespread industry growth,” adds Manuel Ravago, Research Manager for IDC Philippines.

Furthermore, as users in the region continue to consume mobile media such as ring tones, logos, wallpapers, and other feature-rich media, IDC believes that further inroads into the mobile online gaming space will follow suit. The path of natural progression will entail a shift in usage patterns – from “simple content” as in SMS-based applications, to feature- or “media-rich” content such as Java-based games and applications.

Among the countries included in the study, Korea is seen to have the highest degree of mobile online gaming penetration in the region at 6.9% in 2004, due to high mobile phone penetration.

IDC forecasts that long term, mobile online gaming will become a mainstream activity.