Report: Game makers have a longer runway with mobile

As dedicated gaming device sales decline, video game makers are looking to smart phones for future growth.
According to a new report from research firm iSuppli Corp., the video game industry is coalescing around mobile like never before. Whereas top game publishers have built or bought their way into the mobile space for years, there is now a new sense of urgency.
Shipments of game-capable mobile phones are forecast to reach 1.27 billion units this year, marking an annual growth rate of 11.4%. Meanwhile, console and gaming handheld sales are expected to be flat or possibly down at 52.3 million. Portable gaming devices are taking the biggest turn, dropping an expected 2.5% to 28.9 million units this year, according to the report.
“The formidable lead enjoyed by cell phones capable of gaming will continue in the years to come with no hint of decline, and their near-universal presence gives them the potential to become a viable competitive threat to dedicated gaming platforms, primarily handheld devices,” wrote Pamela Tufegdziz, a consumer electronics analyst at iSuppli. “And although gamers who prefer a superior gaming experience will always opt for either a console or handheld, sales of both platforms tend to rise and fall based on the vagaries of product development, consumer buying patterns and economic trends.”
While iSuppli expects the forthcoming release of motion-sensing products from Sony Corp. (SNE) and Microsoft Corp. (MSFT) to breathe new life into the console space, there’s no stopping the inevitable flattening or eventual decline of console-based gaming.