BOSTON-Wireless operators should develop sophisticated, community-focused game services to stave off increasing competition from Electronic Arts Inc., Yahoo Inc. and other media giants, according to a study from Strategy Analytics.
The firm said carriers should expand game download services by adding chat rooms, game ratings, high-score boards and tournaments. Strategy Analytics cited the success of Sprint Nextel Corp.’s Game Lobby, a community built by M7 Networks. Motricity Inc. recently acquired M7 Networks.
“The introduction of community features within Sprint’s games portal has had a positive effect in two areas,” said Nitesh Patel, a senior analyst at Strategy Analytics. “It has created stickiness, and it has increased data usage incrementally as gamers post their scores and rate the games they play.”
EA and Yahoo are each particularly well-positioned to gain a foothold in the mobile community gaming market, which some say will explode in the next few years. Yahoo already offers mobile versions of some of the casual, community-based games it offers online, while EA is working to bring its Pogo line of titles to mobile.
The research firm also expects more consolidation “as the need to improve economies of scale, acquire strategic assets and gain distribution in key markets intensifies.” Indeed, the trend continues as Fun Technologies Plc subsidiary SkillJam Technologies Corp. announced the acquisition of mobile game-maker Octopi L.L.C.
Fun said it will pay an initial $3 million for Octopi, and plans to spend as much as $3 million more based on earnings. Arizona-based Octopi recorded pre-tax profits of $800,000 last year, according to Fun.
“The Octopi team has extensive experience in all forms of mobile game development, and its groundbreaking cross-platform games are a true complement to our existing suite of casual games,” said Lorne Abony, chief executive officer of Fun Technologies. “With its efficient game development engine, ‘Octoplex,’ Octopi has been able to secure big-name clients such as Nokia (Corp.) in the increasingly competitive mobile gaming sector.”
