Mobile Gaming To Hit $6 Billion By 2011Mobile Gaming To Hit $6 Billion By 2011

Mobile gaming is expected to outpace console and handheld gaming and reach $6 billion in sales by 2011, nearly doubling the $3.6 billion the market is expected to take in globally this year, Understanding & Solutions, a British consulting company, said Tuesday.

"Although not seen as the killer application for mobile, games are increasingly important as the market continues to see major growth," David Rouse, a U&S analyst, said in a statement.

Technological and infrastructure developments will allow consumers' gaming behavior to evolve and provide opportunities for new business models, the company forecast.

That, and strong growth forecasts in the midterm, has begun to drive intense competition in mobile gaming and has affected publishers, network operators, developers, and IP owners, U&S said.

"Subscription-based and ad-funded models are on the rise, and microtransactions -- the acquisition of additional levels or virtual goods during game play -- are also beginning to play a part," Rouse said. "However, pay per download is still the most significant revenue generator across all regions." U&S said that traditional content owners increasingly have moved into mobile games through new subsidiaries such as EA mobile and THQ wireless or (like Sega, Konami, MGM, Universal, and Warner) through content licenses.

Existing mobile game companies have begun to consolidate through mergers and acquisitions, according to U&S. While emerging markets like China and India increase mobile phone use, Asian countries, excluding Korea and Japan, are forecast to account for less than 10% of global mobile gaming revenue in 2011 because of low prices.