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Online and mobile technology to transform gaming industry

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September 20, 2012

It looks like not a day pass by without discovering something new related with Smartphones and other “Smart” portable devices such as iPad. Information that gaming is huge on Smartphones is not such fresh information but latest reports say that “boxes” such as PlayStation and Xbox might become a thing of the past due to mobile gaming industry that is one the rise.What the reports say?

Why do we say this? Because we all have (if we do not have we would definitely want one) a Smartphone. And some of us have both phones and Tablets. Now, when was the last time you saw some interesting blog post about PlayStation? This is the point of view of the big companies of the gaming industry.

They are thinking this way- “If nobody cares about Boxes any more, why we wouldn’t start switching to these portable devices everybody have?” And guess what? They are switching and gaming on Smartphones is something that makes their revenues very high.  All the researches shows that in the next 3-6 years, gaming industry will head the opposite way from where it was  a couple of years ago; and that is 180 degrees opposite.

Couple of examples

Let’s start with the most recognizable Facebook game developer-Zynga. Now why are we talking about Facebook when Facebook is not a mobile phone?-Because Zynga (ZNGA at NASDAQ) recently decided to join their hands with Scandinavian phone producer Nokia. This step will help both sides. Zynga will reach for millions (Nokia40 and Nokia Asha Touch Series will cover almost 100 million users) of mobile users and Nokia will try to make a comeback on the market, taken over by Samsung and Apple.

Two Zynga’s games will be pre-installed on these Nokia models- Zynga Poker and Draw Something. Zynga is trying to do two things here- To enter the huge online gambling market (over $32 billion outside of the USA) and to try to cut the Facebook related costs. It looks like they do not wish to be dependable on Facebook platform since their advertisement costs (connected with Facebook) are growing much faster than what they actually earn.

On the other side of the Ocean (in Australia) there is a company called Aristocrat Leisure. Now this company is something completely different compared to e.g. Zynga but they also realized that mobile gaming is the thing of the future. They are actually producing gaming machines (such as lottery machines) but they are switching to mobile platforms and experiencing stock growth for 2 years in a row. Jamie Odell (age 53), CEO of Aristocrat Leisure, explained the whole situation in one sentence: “Mobile gaming has the potential to completely overlap all current forms of gaming in terms of flexibility and adaptability”.

Other than these two examples, there is plenty more to talk about but let’s take a look at the one (independent) mobile game developer. If you’re playing a game on your Smartphone you have probably played some of their games. We are talking about Storm8, the gaming apps development company. They are the major app developers and their gaming apps are earning major bucks. When a company has 10 of their apps in the Top 100 grossing apps, this means they are earning millions of dollars per year.


That’s the piece of the cake huge companies would like to take with themselves. The app market is huge and demand will be on the rise over the next couple of years. There is a plenty of space for both big and small players. If you happen to have a good idea (and money to develop this idea) you might be on the road to mobile gaming industry.

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