Business Week: iPhone ushers in a new era of mobile gaming (picture)

[Sohu IT News] Beijing, July 12 - BusinessWeek published a commentary article indicating that with the opening of the iPhone App Store, a new era for mobile gaming will begin. Below is the full text:

With the launch of the iPhone App Store, iPhone users can directly browse and download games onto their phones without needing to use a computer or pay high data fees to operators. Additionally, equipped with hardware features such as high-definition graphics, automatic orientation recognition, and superior touch control technology, the iPhone greatly facilitates gamers. Therefore, a new era for mobile gaming is about to begin.

On July 10, mobile game company Gameloft released six new games on the iPhone App Store. The company's co-founder and CEO Michel Guillemot said, "This (iPhone model) will completely change consumers' perceptions of mobile gaming."

According to a report by British consulting firm Screen Digest, due to this shift in mobile gaming models, the mobile gaming market is expected to reach $3.7 billion annually by 2012, compared to $2.3 billion in 2007.

Gameloft may be the biggest beneficiary of this shift in model. Gameloft develops games for 1200 different types of phones, selling an average of three games per second. Among its top 50 best-selling games, each has sold over one million copies. The most popular three, including the famous Block Breaker Deluxe game, have even exceeded ten million copies.

According to data from Natixis Securities, since the fourth quarter of 2007, Gameloft has surpassed EA Mobile to become the world's largest mobile game producer. Natixis data shows that this year Gameloft will still maintain its first position and make significant profits. In 2007, the company's revenue was $150.8 million, growing by 40% compared to the previous year, and it is expected that sales will increase by 25% to 30% this year. It is estimated that the impact of new gaming platforms like the iPhone on Gameloft will become more apparent by 2009.

The main driver behind Gameloft's rapid development is the popularity of multimedia phones. Another major reason is the increasing acceptance of downloading content online among consumers. Currently, only 5% of mobile phone users have ever downloaded something online, but with the promotion of the iPhone and Nokia N series, this figure is expected to reach 10%.

New 3G mobile networks make it easier for phones to access and play multiplayer online games. Operators also encourage users to engage in more data services through fixed monthly rental fees. This means that users no longer need to spend high network fees, they just need to download the game.

The price of Gameloft games sold in Apple's App Store ranges from $7.99 to $9.99. Under the iPhone model, Apple and game developers split the revenue 30-70, with the developer receiving 70%, Apple getting 30%, and the mobile operator receiving no share. This is much better than the revenue-sharing model between game developers and operators, where operators often demand more than 30%.

Additionally, this is good news for consumers. Most current games are around 600KB in size. With the advent of high-capacity iPhones, new games will become larger, possibly ranging from 2MB to 60MB, allowing rich 3D applications to be realized on mobile phones. Downloading such large games through the operator's network and being charged per byte would be impractical.

Moreover, the hardware configuration of the iPhone makes it easier for players to operate games and gain more enjoyment. Players can shoot bullets or answer questions by tapping the screen with their fingers. Also, due to the iPhone's motion detection technology, some new operation methods will become possible, such as shaking the phone to shuffle cards while playing card games. In Gameloft's game Asphalt, the iPhone itself can become a steering wheel; just rotate the iPhone, and the 3D car on the screen will change direction accordingly.

Of course, besides Gameloft, many of Gameloft's competitors are also developing games for the iPhone. On July 10, EA Mobile also released three games. Furthermore, EA Mobile will launch the game Spore for the iPhone in September, which will spark another wave of popularity. Analysts estimate that other game companies, such as Glu Mobile and Sega, will also release games specifically for the iPhone.

This year, Gameloft has also expanded its gaming business on iPods and virtual consoles. Gameloft's Brain Challenge is one of the most popular games on Xbox, and Show King is one of the five most popular games on Nintendo Wii.

Analysts believe that Gameloft's move into the console market is a wise decision, as it can expand the player base. Today's mobile gamers may become tomorrow's console or PC gamers.

Some analysts believe that economic weakness might affect mobile game sales, but others remain optimistic, believing that the best times for mobile games have yet to come. Regarding this, Guillemot said, "All factors promoting the development of mobile games are gradually falling into place. The market will grow bigger, and we will provide more satisfying products to more users. We believe this will bring us great development opportunities." (Translated by KeKe)