MOBILE GAMING
`
`B Y J A S O N O. B . S O H A N D B E R N A R D C .Y. TA N
`
`Recent technological advances in mobile devices have pro-
`duced powerful mobile phones and personal digital assistants
`that come with ever-greater computing power, storage capac-
`ity, and graphical and audio capabilities. Playing games on
`them continues to attract millions of subscribers/players
`worldwide. For example, mobile gaming was the highlight of
`the 2006 Electronic Entertainment Exposition in Los Ange-
`les, with Nokia showcasing its Next-Gen Mobile Gaming
`Platform and a series of new game releases. Also, several
`speakers at the same show cited numbers showing that an
`increasing percentage of users of mobile devices use them to
`play games.
`
`Tens of millions
`of users worldwide
`play games, as well
`as make phone calls,
`on their cell phones
`and other handheld
`devices.
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`A 2004 In-Stat/MDR study said that about 6.5%
`of U.S. mobile-device subscribers were “extremely
`interested” or “very interested” in purchasing mobile
`game services [9] and projected that by 2009, 78.6
`million people in the U.S. would be playing mobile
`games; it also said downloads of mobile games will
`have increased tenfold compared to 2003. Zelos
`Group found that in the U.S. alone, mobile games
`could generate $1.5 billion annually in revenue by
`2009. In Europe, a 2003 study by Frost & Sullivan
`reported that revenue from mobile games would rise
`from just under $0.8 billion in 2002 to $7 billion in
`2006 [1]. In the Asia-Pacific region, IDC reported
`that the wireless gaming industry is growing 40%
`annually and expects it to reach $1.3 billion annually
`by 2008.
`Demand for mobile games is
`fueled by three main factors:
`
`that 114 million people worldwide would be playing
`online games by 2006, most in the form of mobile
`games [6]. While industry analysts would not dispute
`the significance of the trend toward mobile gaming,
`many questions remain. Here, we examine key tech-
`nology factors behind the trend and analyze the
`opportunities for and threats to key players (and
`potential new entrants) in the computer gaming
`industry.
`The mobile gaming technology platform typically
`comprises a network linking a server and numerous
`clients (mobile devices). Through the server, which
`stores and controls game services, game providers are
`able to publish and distribute mobile games for play-
`ers to download on their mobile devices. Some such
`devices may be gaming enabled (such as the Nokia N
`
`• Increasing mobile device pene-
`tration rates in many coun-
`tries, especially Finland, Japan,
`Korea, and Sweden; many
`users of mobile devices are
`potential consumers of mobile
`games;
`• The ability of mobile devices
`to deliver quality video and
`audio continues to improve
`significantly, making such
`devices suitable for playing
`mobile games; and
`• The improving ability of wire-
`less networks to handle broad-
`band transmission, allowing
`users of mobile devices to
`download larger and more
`compelling mobile games.
`
`Table 1. Wireless
`communication
`platforms for
`mobile games.
`
`They represent both business opportunity and
`threat for wireless carriers, application developers, and
`content providers. Indeed, they are happening so
`quickly that industry observers believe they can alter
`the basis of competition in the computer gaming
`industry. Key players have expressed a desire to exploit
`it. For instance, mobile device manufacturer Nokia
`launched gaming communities to build awareness
`and use of mobile games. As a major game publisher
`in Japan with 2.5 million subscribers for its mobile
`game services, Sega hopes to achieve similar success in
`the U.S. In its 2004 study, In-Stat/MDR said that
`mobile gaming would continue to increase in impor-
`tance as a contributor to telecom industry revenue. A
`2002 research report from DFC Intelligence forecast
`
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`series). When mobile gaming users connect to the
`server, they are able to join multiplayer games, down-
`load new games, and view their scores. In online-
`game-play mode, players access the server to play
`mobile games with other players. In offline-game-play
`mode, players use Bluetooth-enabled mobile devices
`to form local area networks with other players (within
`a distance of about 10 meters) to play mobile games.
`Recent advances in wireless technology (in terms of
`speed and bandwidth) provide practically instanta-
`neous data transfer, thereby enabling millions of peo-
`ple to play mobile games on the go (see Table 1).
`To support the explosive growth in the mobile
`gaming market, technology platforms are being cre-
`ated for the development of the games. Sun Microsys-
`tems’ Java 2 Platform Micro Edition, or J2ME, and
`Qualcomm’s Binary Runtime Environment for Wire-
`less, or BREW, are the most prominent technology
`platforms used in the industry. Each offers an
`enhanced user interface, improved application usabil-
`
`Table 1. Wireless communication platforms for mobile games.
`
`Platform Characteristics
`3G
`Broadband, packet-based transmission of
`text, voice, video, and multimedia
`
`Implications for Mobile Gaming
`Quality graphics and sound, enhancing
`gaming experience
`
`Data rates up to 2Mbps
`
`Bigger games downloaded in less time
`
`4G
`
`Interactive multimedia services with greater
`bandwidth, digital elements, global mobility,
`service portability, and network security
`
`Data rates up to 100Mbps
`
`GPRS
`
`“Always-on,” higher-capacity data services
`(such as email, Internet browsing,
`multimedia messages, visual communication,
`and location-based services)
`
`Data rates up to 171kbps
`
`High-quality multimedia and 3D games with
`greater speed and efficiency
`
`Bigger games downloaded in less time
`
`More players
`
`“Global” multiplayer gaming
`
`Mobile games played “on the move”
`
`Colorful images
`
`Multiplayer games (such as Nokia’s
`Pathway to Glory)
`
`Bluetooth
`
`Short-range wireless networks within 10
`metres inexpensive and easy to connect
`
`Local-area multiplayer games (such as
`N-Gage by Nokia and Zodiac by Tapwave)
`
`Data rates up to 2.1Mbps
`
`Tan table 1 (3/08)
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`ity on small screens, and the ability to create games
`that can be run offline, eliminating the need for a con-
`stant network connection. Other promising technol-
`ogy platforms include Mophun (from Synergenix
`Interactive), ExEn (an execution engine from In-
`Fusio), and XNA (from Microsoft) (see Table 2).
`The convergence of technology platforms is an
`opportunity for mobile-game content developers to
`target a worldwide market. They can develop mobile
`games for common platforms (such as J2ME and
`BREW). They can also quickly adapt existing mobile
`games for the common platforms. Given such bene-
`fits, different mobile-game content developers are
`likely to create mobile games that are compatible
`(based on the common platforms).
`
`Major producers of mobile devices aggressively try
`to alleviate the related technology limitations. For
`instance, the Nokia N81 handset (released in 2007)
`comprises a 16.7 million-color screen with integrated
`stereo speakers and full support for Java ME gaming
`applications. It can also switch effortlessly between
`portrait and landscape modes for playing games.
`Faster processors are also being used to enhance
`mobile devices for playing games. For instance, the
`Nvidia GoForce 3D (the world’s first 3D wireless
`media processor, introduced in 2004) offers a level of
`processing not previously possible on mobile phones,
`PDAs, or other mobile devices. Mobile game devel-
`opers are thus able to harness this powerful technol-
`ogy to create rich, dynamic, lifelike worlds and
`characters. Another example is the Imageon 3200
`chip (from ATI) that allows higher-quality graphics
`and video to be displayed on standard PDA displays,
`thus boosting the quality of the gaming experience.
`Research by Informa Media Group suggests that by
`
`2010, mobile gaming will overtake both console and
`personal computer gaming in terms of market value.
`As new entrants challenge incumbents for this grow-
`ing slice of the gaming industry pie, there is likely to
`be fierce competition by “content aggregators, pub-
`lishers, handset manufacturers, resellers, and network
`operators” [3]. Key players in the gaming industry
`must position themselves to be able to exploit the new
`opportunities that are likely to follow.
`The development and marketing costs for a con-
`sole or personal computer game may run in the mil-
`lions of dollars. In comparison, such costs for a mobile
`game are typically $100,000 to $200,000 (2006 esti-
`mates); for details, see www.aniway.com/flash_lite_
`for_mobile_game_developers/?p=35. Moreover,
`development kits
`for mobile
`games are widely available from
`phone manufacturers, including
`Nokia, helping mobile-game con-
`tent developers create content for
`their phones. The low entry barri-
`ers for mobile games have helped
`spawn a proliferation of small
`mobile-game content developers.
`A challenge confronting these
`developers, which typically lack
`strong marketing and distribution
`networks, is getting their products
`to consumers. Two possible solu-
`tions are:
`
`Table 2. Technology
`platforms for develop-
`ment of mobile games.
`
`Partners. Content developers can
`enlist mobile device manufac-
`turers and network operators to
`distribute their products; for
`example, in 2004 Jamdat
`Mobile signed a series of agree-
`ments with network operators
`to make its products available to 880 million
`mobile device users worldwide. In Singapore,
`Gameloft (an emerging mobile-game-content
`developer) signed agreements with three major
`network operators—SingTel, Starhub, and M1—
`to distribute its products; and
`Mergers and acquisitions. Content developers can
`enhance their long-term prospects through merg-
`ers or acquisitions. A larger mobile-game-content
`developer is more likely to survive than its
`numerous small mobile-game-content-developer
`counterparts. An example is Mforma, which went
`on an aggressive acquisition spree 2001–2004 [4].
`
`Mobile-game content developers can also focus on
`women, a still often-neglected consumer segment seg-
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`Table 2. Technology platforms for development of mobile games.
`
`Platform Characteristics
`J2ME
`Enables Java-based games to be played on mobile phones and PDAs
`(Java-based)
`
`Allows mobile device makers, wireless carriers, and enterprises to
`quickly develop, install, and run new games on wireless networks
`
`Devices
`Nokia Series 40
`and 60 devices,
`N-Gage,
`Motorola T720
`
`Widely accepted standard that works with multiple platforms
`
`Improves graphic and multimedia capabilities to suit mobile devices
`
`BREW
`(C-based)
`
`Optimizes memory allocation, making it suitable for mobile devices
`with limited resources
`
`Supports game operators with such capabilities as secure
`over-the-air distribution of applications, billing and payment, and
`service monitoring and support
`
`Allows games to be played more quickly because it runs on C
`rather than Java
`
`Enables rich gaming experience with advanced 3D graphics,
`enhanced audio, and multiplayer capabilities
`
`Provides good graphical capabilities and fast processing speeds
`
`Enables additional game-development capabilities (such as sprite
`zooming, parallax scrolling, ray casting, and rotations)
`
`Mophun
`(C-based)
`
`ExEn
`(Java-based)
`
`Motorola T720,
`Samsung A530,
`Samsung A610
`
`Sony Ericsson,
`Motorola, N-Gage
`
`Philips, Alcatel,
`Mitsubishi, Panasonic
`
`Tan table 2 (3/08)
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`ment of the gaming industry. Men generally prefer
`sports, shooter, and other action-game genres.
`Women are more likely to play puzzle and role-play-
`ing games. The focus of the gaming industry has his-
`torically been male players. But now mobile games are
`being developed to appeal to both genders. For exam-
`ple, The Sims is a runaway success in terms of revenue
`among both men and women. The trend seems sus-
`tainable because women tend to spend more on ser-
`vices related to mobile devices than do men. An
`article [2] highlighted the significant growth in the
`Key players in
`the gaming industry
`must position themselves
`to be able to exploit
`the new opportunities
`that are likely
`to follow.
`
`number of women worldwide eager to play and will-
`ing to pay for mobile games. Mobile-game-content
`developers can exploit such opportunities by develop-
`ing mobile games specifically for women.
`As of January 2008, the use of 3G services is still
`much less than anticipated by industry analysts,
`mainly due to the prohibitive cost of 3G licenses and
`potential 3G implementation problems. Likewise,
`multimedia messaging has not taken off as predicted.
`Therefore, the current strategy of network operators is
`to try to derive more revenue from nonvoice services
`(such as downloading ring tones and pictures). Net-
`work operators increasingly look to sell services for
`downloading mobile games. Unlike other players in
`the industry, this should not be such a problem for
`network operators since the downloading of mobile
`games is like other nonvoice services.
`The network operator Vodafone took such an ini-
`tiative in 2002, launching the Vodafone Live! suite of
`services to integrate services like picture-sending, Java
`games, mobile Internet, and ring tones into a coher-
`ent package accessible over the general packet radio
`service network. In doing so, Vodafone was able to
`capture a good slice of the fast-growing mobile-gam-
`ing market. The strategy of integrating services is also
`being practiced by the Japanese network operator
`NTT DoCoMo through its highly successful i-mode
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`services. Network operators are generally not strong
`in content creation, so a collaborative strategy would
`be useful. As an example, T-Mobile (a network oper-
`ator) and Sony Pictures (a content creator) collabo-
`rated in 2002 to create “film-themed games for
`T-Mobile’s wireless subscribers” [8]. Such a strategy
`builds on interest created by movies while encourag-
`ing nongamers to try out mobile games.
`Another potentially lucrative business that network
`operators may also be able to exploit is massively mul-
`tiplayer online games (MMOG). Unlike mobile
`games sold as a product that generates one-time rev-
`enue, MMOGs can provide network operators with
`an ongoing subscription-based revenue stream. As
`MMOG players subscribe in order to play with thou-
`sands of other players worldwide, they provide a self-
`generating revenue stream for network operators in
`the form of monthly subscription charges and data-
`transfer fees. Thus, network operators can link up
`with MMOG developers to create and market such
`games while providing potentially lucrative network
`support. A successful example is Botfighters, a mock
`combat game in which players use their cell phones to
`locate and “kill” opponent robots (released in 2000
`by Swedish mobile-game developer It’s Alive). This
`MMOG (which has since undergone numerous revi-
`sions) is played by tens of thousands of gamers in Fin-
`land, Ireland, Russia, and Sweden. In 2004 the game
`generated more than one million short messages per
`week in Moscow alone.
`Manufacturers of mobile phones regularly intro-
`duce new models in a bid to attract new customers or
`get existing customers to upgrade their handsets and
`hasten the replacement cycle, as well as renew their
`contracts with their existing service providers. One
`way to do this is to exploit the growing interest in
`mobile gaming. For instance, in 2002, Nokia intro-
`duced the N-Gage (which has since undergone sev-
`eral improvements), combining the features of a
`mobile phone, an MP3 player, and a mobile gaming
`device. The N-Gage continues to be positioned as a
`direct competitor to the dominant mobile gaming
`devices—Nintendo’s GameBoy Advance and Sony’s
`PSP. Some PDA manufacturers have adopted a simi-
`lar strategy. For example, Tapwave’s Zodiac (released
`in 2004 in Asian markets) has received positive
`reviews as a PDA/mobile gaming device hybrid. In
`2003, Sprint PCS released its Game Pad controller,
`which works with the Samsung A600 cell phone
`(introduced in 2003) to add console-like control to
`mobile games. The Sony Ericsson P800 combines a
`PDA and mobile-game device [5].
`These innovations have generated profits over the
`past five years, despite the millions of dollars Nin-
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`tendo has generated in sales of handheld gaming
`devices, including the Wii video game console (intro-
`duced in 2006). However, as new entrants, mobile-
`device manufacturers may indeed face formidable
`challenges from incumbents as they try to capture
`market share. Nevertheless, as they enhance the gam-
`ing capabilities of their products, mobile-game-con-
`tent developers can create more vivid and faster-paced
`games to entice mobile-phone subscribers to play
`mobile games.
`Console manufacturers have traditionally provided
`the platforms for computer games. But with the rising
`tide of mobile gaming, console manufacturers would
`face tough competition from new entrants (such as
`mobile device manufacturers). Mobile devices in the
`near future should be expected to have better process-
`ing power, enhanced 3D graphics performance, and
`better audio capabilities. Meanwhile, Intel and
`Hitachi have developed specialized microchips for
`mobile phones to improve the quality of mobile gam-
`ing. In addition, improved network bandwidth and
`storage capacity have begun to put mobile devices on
`par with consoles. Indeed, the very existence of con-
`sole manufacturers is threatened by such devices.
`It is thus essential that console manufacturers
`improve their product appeal by combining gaming
`and general electronics functions. An example is the
`Sony PlayStation 3, with high-definition DVD and
`HDD recording capabilities, a product positioned as
`an integrated entertainment system, transcending the
`idea of mobile gaming. Microsoft’s Xbox platform has
`also followed this trend by incorporating Internet,
`video, and photo-editing functions into the latest
`Xbox 360 console. Console manufacturers should also
`view backward compatibility as an important feature
`in future console development, protecting gamers’
`investment in earlier games while giving them access
`to the latest ones. Indeed, the success of Sony’s domi-
`nant PlayStation 2 was due largely to its ability to
`allow gamers to play games made for its predecessor,
`the original PlayStation.
`Traditional game-content developers have provided
`games for arcades and personal computers since the
`1970s. Games now considered classics include Pac-Man,
`Donkey Kong, and FIFA Football. These developers
`have positioned themselves to create versions of their
`existing games for the emerging mobile-gaming context,
`thereby allowing gamers to play the classics anytime any-
`where. For instance, Electronic Arts (an established game
`developer with much success in both console and per-
`sonal computer games) has ramped up its effort to
`extend the highly popular FIFA Football and Tiger
`Woods Golf games to mobile gaming platforms [7].
`Due to a lack of diversity, hardware inflexibility,
`
`and immobility, arcade games have experienced a
`steady decline in recent years. The emergence of
`mobile games further threatens this business. Hence,
`arcade-game-content developers must focus on games
`that cannot be played in a mobile-gaming context.
`They must design and develop new games with
`unique characteristics (such as those that involve body
`movement). Through props (such as motorcycles,
`dance pads, race cars, and musical instruments), these
`developers have managed to create several arcade
`games (such as Initial D Arcade Stage 4, released in
`2007) that offer a more realistic experience (that can-
`not be replicated in a mobile gaming context). They
`are also exploring the possibility of incorporating net-
`work capabilities into arcade games by enabling play-
`ers to engage in Web-based interactive arcade gaming.
`As mobile devices become an indispensable com-
`ponent of everyday life, the market for mobile gaming
`is likely to continue to increase well into the future.
`Incumbents in the computer gaming industry must
`adapt to remain viable. New entrants to the industry
`can exploit the many new opportunities that are still
`c
`emerging.
`
`References
`1. Cellular mobile gaming grows to EUR 6 billion in 2006 (Oct. 14, 2003);
`www.cellular.co.za/news_2003/101503-mobile_gaming_grows_to_eur_
`6_bil.htm.
`2. Chen, S. The rise of the woman gamer. FierceGameBiz (July 21, 2006);
`www.fiercegamebiz.com/story/feature-the-rise-of-the-womangamer/2006-
`07-21.
`3. Keegan, V. Innovate or die. The Guardian (July 17, 2003);
`www.guardian.co.uk/computergames/story/0,11500,999425,00.html.
`4. Kharif, O. Wireless gaming is getting serious. BusinessWeek Online (Sept.
`29, 2004); www.businessweek.com/technology/content/sep2004/
`tc20040929_8666_tc024.hm.
`5. King, B. New-generation phones got game. Wired.com (Sept. 12, 2003);
`www.wired.com/news/games/0,2101,60417,00.html.
`6. Olavsrud, T. Grid to revolutionize video game industry? Atnewyork.com
`(May 9, 2002); www.atnewyork.com/news/article.php/1107121.
`7. PC Vs. Console News. EA announces next step into mobile gaming
`(Sept. 2, 2004); www.pcvsconsole.com/news.php?nid=2661.
`8. Poropudas, T. T-Mobile to give Sony over 50% of the take. Mobile Com-
`merce Net (Nov. 12, 2002); www.mobile.commerce.net/story.
`php?story_id=2441.
`9. ZDNet Personal Tech. Mobile game market to boom (Sept. 8, 2004);
`news.zdnet.com/2100-1040_22-5355648.html.
`
`Jason O.B. Soh (jason.soh@accenture.com) is an SAP consultant in
`Accenture, Singapore.
`Bernard C.Y. Tan (btan@comp.nus.edu.sg) is a professor and
`head of the Department of Information Systems at the National
`University of Singapore.
`
`Permission to make digital or hard copies of all or part of this work for personal or
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`for profit or commercial advantage and that copies bear this notice and the full citation
`on the first page. To copy otherwise, to republish, to post on servers or to redistribute
`to lists, requires prior specific permission and/or a fee.
`
`© 2008 ACM 0001-0782/08/0300 $5.00
`
`DOI: 10.1145/1325555.1325563
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