Worldwide Mobile Game Revenues Will Likely Hit $4.5 Billion This Year: Report

Worldwide mobile gaming revenues are on pace to hit $4.5 billion in 2008, representing a 16.1 percent increase over last year, according to Gartner. The industry has struggled a bit over the last few years to hit its stride?and hasn't seen the kinds of increases that other content has?such as music and adult content?but Gartner said it remains full of potential because it crosses all sub-segments from lower-income consumers to business users with high-end smartphones. It can also be seen in emerging markets as a viable alternative to PC and console games. It's no surprise that Asia is currently the leading market for mobile games, but an interesting tidbit that Gartner is reporting is that North America will pull ahead of Western Europe over the next few years and be a larger market as Americans adopt more data services in general. Release.

Highlights from the report after the jump?

-- Revenue growth: Mobile game revenues will grow at a compound annual rate of 10.2 percent between 2007 and 2011 with worldwide user spending reaching $6.3 billion in 2011.

-- Low-end and high-end: Mobile operators and other game providers can increase usage if they offer offer games based on the type of user. For instance, operators should target smartphone users with sophisticated games, and low-income people with discounted or ad-subsidized games, or an offering such as 'pay per game.'

-- Asia is big opportunity: The Asia/Pacific region, including Japan, is the largest market for mobile gaming, with users expected to spend $2.3 billion in 2008 and $3.4 billion by 2011.Some emerging markets see mobile games as an imperfect substitute for PC or console games. India is expected to lead among Asian countries going forward with revenues expected to reach $450 million by 2012, up from $80 million in 2007.

-- Europe vs. N. America: In Western Europe, mobile game revenues are expected to grow to $862 million by 2011 from $701 million in 2008, compared to in North American, where the market is projected to grow to $1.2 billion in 2011 from $845 million in 2008.