Studios nab smartphone gaming dollars

While videogame sales were down 11%, mobile-game profits jumped 9% -- and movie marketers are taking notice

By TheWrap Mar 16, 2010 3:39PM

There is one bright spot in the flailing videogame industry, and Hollywood already has started to take notice.


Last year, while videogame sales were down 11%, U.S. mobile game publishers took in about $539 million in sales. That's up 9.3%, according to research firm SNL Kagan.

Even more impressive, annual customer spending is likely in the $1.3 billion to $1.5 billion range, according to Kagan analyst John Fletcher. Game publishers typically get 30% to 50%  of the dollars.


And the income is likely to continue to rise as publishers charge higher prices for more intricate games designed for the iPhone, Blackberry and Android crowd.


In fact, the typical iPhone user is about 70% more likely to use it for gaming than other mobile phone users. "The iPhone has really changed the landscape," Fletcher told TheWrap.


Meanwhile, more than 30 movie-based mobile game titles have already been produced over the past three years.

Most recently, Disney released a mobile game for “Alice in Wonderland," 10 days before the Tim Burton film’s debut last weekend. Coming up on March 23 is "How to Train Your Dragon," based on the DreamWorks Animation film that opens in theaters three days later. And in July, Universal's Steve Carell-starring "Despicable Me" will be accompanied by a mobile game.

Read more in TheWrap.

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