Porti-Game Growth Driven to $11.7 Billion by iPhone/iPod, Says DFC Intelligence

By Contributor Wireless and Mobile News on October 22, 2009 12:41 PM

DFC Intelligence predicts the worldwide market for portable and mobile games is expected to grow to $11.7 billion by 2014. The primary driver of this growth is expected to be the Apple iPhone and iPod Touch systems.

By 2014, sales for games on the iPhone/iPod Touch are expected to account for about 24% of total portable game software sales.

"The dedicated portable game systems from companies like Nintendo and Sony are still expected to lead the market, but it appears growth for these devices has peaked. The platforms from Apple are expected to be responsible for the bulk of market growth over the next few years," says DFC analyst David Cole.

DFC also released some results from a study on the mobile game habits of over 8,000 game players in North America and Europe. 54% of respondents in North America and 69% of respondents in Europe had played a game on their mobile phone in the past year.

Furthermore, 45% of respondents in North America and 36% in Europe had paid to purchase an application for their mobile phone. Among respondents, the App Store was already the most popular service for making purchases. Across both North America and Europe about 15% of respondents already owned an iPhone or iPod Touch, compared with 29% that owned a Nintendo DS.

The entry of Apple into the mobile entertainment space is so important that DFC Intelligence partnered with leading iPhone application provider Oceanhouse Media (developers of over 60 iPhone apps) to prepare a detailed report on the market. According to Greg Uhler, Oceanhouse Media Development Director, “with the iPhone and iPod Touch, Apple has finally delivered mobile developers a platform with an attractive business model and a rapidly growing installed base of active consumers.” Of course, the iPhone is about more than just games. “Games are expected to account for only about 23% of application sales on the iPhone,” says Michel Kripalani, President of Oceanhouse Media. “There are many fantastic opportunities for non-game related content on both the iPhone and iPod Touch. These devices, when combined with Apple’s business model, are a much needed revolution for the mobile market.”

The new series of reports include The Market for iPhone and iPod Games and Applications, The Market for Portable Video Games and Gamers and the Usage of Mobile Phones. These reports are available individually or as part of one of DFC Intelligence’s ongoing research services.