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Mobile Content Revenue Expected To Consume Nintendo 3DS, PS Vita By 2016
The mobile content space is a sketchy one; yes, there is a lot of proliferation in mobile technology and mobile software, however there is also a lot of volatile financial investments that don't always pan out. A new report from Juniper Research suggests that the overall landscape of mobile content will reach and exceed $65 billion by 2016, up from the $45 billion estimated for this current fiscal year.
A lot of the mobile content revenue will stem from eBook sales, direct billing and streaming content, this also includes interactive entertainment such as video games. Direct billing is expected to become a much bigger player throughout the surge in growing mobile monetary mechanisms, with the author of the recent report, Dr Windsor Holden, mentioning that...
“While the availability of direct carrier billing is patchy, the various benefits which the mechanism offers - higher conversion rates, opportunities to monetise unbanked customers - suggest that deployments will rise significantly in the medium term”.
Like many other analytical reports spiraling around the global expressway to information, the gaming portable marketer was dragged into the discussion, with a quick note on how the growing consumption of mobile content will eventually cannibalize other competitive mobile devices, such as Nintendo's 3DS and Sony's PlayStation Portable and PS Vita, with the report stating...
...tablets are experiencing a sharp increase in both paid and free video applications, while consumer gaming spend is expected to migrate to tablets from dedicated portable gaming devices such as the Nintendo 3DS and the Sony PS Vita.
While we are seeing a sharp rise in the use and saturation of mobile devices, such as tablets, within the media content market, previous reports (in addition to the history of long standing core consumers) have shown that trends and consistent financial tracking from established research firms, don't necessarily lend themselves to the postulation that games for portable devices will be consumed by tablets and smartphones anytime soon.
Furthermore, as noted in Nintendo's own financial reports, the autostereoscopic Nintendo 3DS has seen a 55% increase in year-over-year software sales [via VG24/7], and hardware sales are actually beating the original Nintendo DS by a massive 7 million SKUs within the same sales period. Take note that the original Nintendo DS launched back in 2004, nearly a decade ago.
Also, the Nintendo DS, a year after launch, managed to move 18 million software items during the spring quarter, as reported by Video Games Blogger, and the Nintendo 3DS has managed to shift 20 million game units and a separate 41 million digital items during the same time frame. So within ten years, Nintendo is numerically saying that their market valuation for portable gaming has actually increased over the years, even during the rocky, global economic climate.
While I don't doubt the further growth of tablets and smartphones, I do believe that core audiences and brand loyal consumers will continue to show support for Nintendo and Sony for as long as each company continues to produce quality content for their devices.
You can learn more more about the Juniper Research report by paying a visit to the official website.
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