Cell phone video games will boost the sales of game titles as the sales of console and handheld systems stall, according to market researcher iSuppli.
Sales of game-capable mobile phones are forecast to grow to 1.27 billion in 2010, up 11.4 percent from 1.14 billion last year. That vastly outnumbers the sale of game consoles, which are expected to ship 52.3 million units in 2010, up 0.2 percent from 52.1 million in 2009. Handheld game devices are expected to sell 3.9 million units, down 2.5 percent from 39.9 million last year.
“The formidable lead enjoyed by cell phones capable of gaming will continue in the years to come with no hint of decline, and their near-universal presence gives them the potential to become a viable competitive threat to dedicated gaming platforms, primarily handheld devices,” said Pamela Tufegdzic, consumer electronics analyst at iSuppli.
She added, “And although gamers who prefer a superior gaming experience will always opt for either a console or handheld, sales of both platforms tend to rise and fall based on the vagaries of product development, consumer buying patterns and economic trends.”
The growth in games on mobile platforms is enough to offset the decline in consoles and handhelds. The consoles, first launched in 2005, have reached a mature phase in their life cycles and have hit market saturation. Consumers aren’t upgrading as quickly anymore because of high prices, the expectation that new consoles will arrive, and economic uncertainty, iSuppli said.
By contrast, sales of the iPhone and other mobile phones continue to flourish. The release of motion-sensing systems from Sony and Microsoft is expected to breathe some new life into consoles this fall. That will cushion an overall decline for consoles in 2011. By 2012, console makers are expected to launch next-generation consoles, which will boost revenue and unit shipments through 2014, when console units sold will hit 59.9 million. The online functionality of the consoles will expand gaming revenue as more consumers turn to services such as the PlayStation Network and Xbox Live.
[photo credit: babble]