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Digital & Social/Mobile Games on the Rise

Digital/non-traditional business generated almost half of retail games earnings last quarter.

Last week I wrote a blog which covered my take on Ben Cousins’ GDC presentation “When the Consoles Die, What Will Come Next?” In his presentation Ben went on to explain how he believes that the console era is near an end and mobile gaming will be the new platform of the future. While I agreed with Ben’s remarks, in my response I stated that some form of digital gaming will act as an intermediate between mobile and console gaming. Well, after taking a look at the some of the statistics from last quarter, it seems that we both may be right.

Gamasutra announced today that consumers spent $3.33 billion on games outside of retail in the U.S. and key European markets in the fourth quarter of 2011. The U.S. in particular has become enamored with such forms of gaming, spending $2.04 billion, which is nearly half of the total $4.5 billion packaged software sales (including retail console games).

This trend is not entirely new, however, as the previous quarter showed consumers actually spent more on non-retail games with $1.64 billion compared to the $1.3 billion they spent on new games at stores. These consistent numbers show a steady growth in the digital and mobile markets, which are beginning to rival the dominant home console market.


 

Comments

Our Take

Mike Wall Staff Alumnus

03/23/2012 at 04:15 PM

Looking at these numbers one cannot help but ask, what does this mean for video games? Are we on the verge of a new trend? What will that trend be? Let us know what you think in the comments.

Mongoose

03/24/2012 at 12:34 AM

the mobile games are hitting a wider demographic, since more people own a smartphone/tabet than ever.   Add the price/value and volume, bake for a few years and you got a recipie for money pie. Now who wants a piece?

*publishers raise hands*

While most of these titles range from dubious, to average, with standouts like Angry Birds, Words with Friends, Draw Something,etc, you've got people gaming who would otherwise scoff at being labeled a gamer.

The hardcore gaming community doesn't have to fret yet. Until you can get your Call of Duty/Madden on iOS/Andriod, expect your 59.99 update title to still sell over 1 million in a matter of minutes. Publishers won't ignore that money.

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