Wireless Gaming – The
Mobile Arcade
Iain Gillott
Charul Vyas
iGillottResearch
What it is
A service in which an end-user connects with a wide area
wireless network - such as cellular, PCS or 3G - in order to
play interactive, server-based or downloadable gaming
applications
May include those that communicate with a server though a
WAP or other mobile Internet gateway or through messaging
gateways such as those of SMS and MMS platforms
Gaming applications refer to those that involve skill and/or
luck-based competition with either other players or a serverbased host
Competitiveness can depend on the players skills related to strategy,
reflexes, logic, timing, memory and knowledge
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What is isn’t
Not included
Mobile entertainment applications such as
horoscopes and fortunes, ring tones, character
downloads, sports news, jokes and other music and
video multi-media
Mobile gambling
Embedded games such as snake
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Who Games? Very Few Right Now
Wireless Users
Wireless Data Users
Messaging and Internet Users
Entertainment Users
Game Players
Messaging
Users
Server-Based Games
Downloadable
Off-line Games
Hybrid
Games
Messaging
Games
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Online
Games
Wireless
Internet
Users
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Who Games?
145 million Americans, or approximately 60% of the U.S.
population, regularly plays video games on their computer or
video game console
Average age of game player is 28 years old
42% of game players are women
Vast majority of people who play do so with friends and family
Almost 60% of frequent game players play with friends, 33% play with
siblings, and about 1/4 play with their spouse and/or parents
U.S. computer and video game software sales grew 8% in
2001 to $6.35 billion
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Why gaming?
Offers sticky application for carriers
End users see it as a value add
This may help reduce churn if games offered
are seen as a differentiator
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Who Uses W. Gaming?
Case example - gaming company Digital Bridges reported
over 10 million WAP user sessions in the past 18 months
Company says mobile phone gamers have used WAP
games - both in color and black & white - for approx. 71.4
million minutes in this period, which add up to 136 years
of accumulated game play
Says it has seen a steady uptake in WAP game played
over the past two years
First half 2002 = close to 4 million games played
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Value Chain
Application
Developers and
Communities
License Holders
and Brands
Publishers
Portals and
Distribution
Channels
Enabling Middleware
Platforms Extensions
Commerce
Enabling
Platforms
Device Enabling
Platforms
Wireless Carriers /
Network Access
Providers
Description
Write the code for graphics, scores, interactivity in the mobile
environment.
Household names among professional athletes, pop music stars, movie titles and
video game titles from non-mobile platforms that are licensed to mobile gaming
publishers.
Manage licensing and development of mobile applications, review and qualify
applications in order to ensure that they are ready to present to carrier
customers, find and select distribution channels.
Aggregate and distribute gaming content to carriers. Often include content such
horoscopes, ring tones, character images.
Include micro browsers, media players, and other middleware, also consist of
platforms such as Palm, Pocket PC, JAVA, BREW and other abstraction layer
systems.
Billing, payment, mediation, clearing and settlement functions that enable
carriers to measure, bill, collect and distribute revenues specific to the
provisioning of mobile gaming content.
Includes plastic handsets, as well as device-based solutions such as Texas
Instrument’s OMAP, Nokia’s series 60 and other device-centric platforms.
Provide access to wireless networks that enable players to interact with other
players and servers in order to download or play server based games. Enjoy the
most control over the value-chain due to their control over the relationship with
the end-user.
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Gaming Types
Entertainment Users - wireless data users
subs or pay-per-use in order to access and
transmit various entertainment content games, ring-tones, music, video, cartoon
characters, horoscopes, fortunes and sports
news
Game Players - subset of entertainment
user market. Users play strategy, combat,
sports, trivia, classic and casino style
games. Excluding actual betting and
embedded games such as Nokia’s Snake
Downloadable Off-line Games - through
the use of abstraction-layer and virtual
machine platforms such as J2ME and
BREW, users can download over the air
and play off-line are emerging as
meaningful applications
Server-Based Games - utilize on-going
connection with a server throughout
duration of the game. The following two
basic categories of server-based games are
emerging:
Messaging Games - player maintains
connectivity with a messaging server
through an SMS, EMS, or MMS gateway
On-Line Games - player maintains
connectivity with wireless Internet service
through a WAP or other Internet service
gateway
Hybrid Games - downloadable, serverbased and even embedded gaming
components will interoperate within a
single game creating the hybrid game
genre. Example: In-Fusio’s Football Fans
- players download additional teams to
play and register score by sending an SMS
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Billing Types
Various types of billing needed for various types of
games:
Minute based
Event based
Content based
Bit rate based
Subscription based
Prepaid
Hybrid
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The Bad
Devices too small
Too little processing power
Too little memory
Awkward interfaces
2G networks and devices to
slow
Old 2G billing systems can’t
always bill for different
kinds of games
Poor marketing of gaming
by most operators
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The Good
Gaming has a loyal
following
New billing platforms allow
for flexibility
Devices usually with the
person at most times
Early pioneers of video
games are getting into
wireless gaming
i.e.:Scott Orr, early developer
for Atari and Commadore,
now making wireless games
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The Good
Location-based gaming a possibility as networks begin to support
E911
Major media, sports and entertainment brands looking at wireless
gaming
New development platforms + new games + new devices + new
network = more appealing gaming experience
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U.S. Forecast of Gaming Users
2001 – 2006 (000s)
20,000
15,000
10,000
U.S. Gaming Users
5,000
0
2001
2002
2003
2004
2005
2006
Number of users very low right now - 1.26M in 2001
But users expected to be 15M by end of forecast period - CAGR of
more than 90%
Total gamers will only be about 6.5% of the total wireless user base,
and only 20% of the actually W.I. user base by 2006
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U.S. Gaming ARPU Forecast
2001 - 2006
Number of session to
grow from 20 per
month to 27.5
Revenue per user per
session to increase
from $.08 to $.11
Average gaming user
will generate $3.00 in
ARPU per month by
2006
U.S. Gaming ARPU
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
$0.00
2001 2002 2003 2004 2005 2006
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Things to remember
Gaming is just getting
started
All pieces are starting to
come together
Consumers are price
sensitive
Education of the market is
needed
Gaming can build loyalty
- if distinct
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Questions?
Iain Gillott
512-263-5682
[email protected]
Charul Vyas
512-282-0161
[email protected]
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