KongZhong Monetizes Mobile Gaming Despite Piracy in Emerging Markets, Finds Pyramid
Aug 18, 2009
Some 90 to 95 percent of video games in emerging markets are said to be pirated, but one company doing something about it -- Chinese mobile content provider KongZhong, according to recent analysis from Pyramid Research (www.pyr.com), the telecom research arm of the Light Reading Communications Network (www.lightreading.com).
Console manufacturers and game developers have unsurprisingly avoided countries with a lot of piracy -- and not only because disposable incomes there tend to be much lower, writes Jan ten Sythoff, analyst at Pyramid Research in "Mobile Gaming: A Pirate-Free Future? (http://www.pyramidresearch.com/points/item/090813.htm?sc=PR081809_PPMOBGAM)" "However, mobile handset penetration levels in these countries are increasing, the capabilities of mobile devices are becoming more sophisticated, and networks are gradually enabling higher data speeds. These trends are opening a big opportunity for gaming on mobile devices. Games based on virtual worlds with in-game transactions, for instance, are gaining traction, as seen by the strong performance of KongZhong."
-- Read the full Pyramid Point "Mobile Gaming: A Pirate-Free Future? (http://www.pyramidresearch.com/points/item/090813.htm?sc=PR081809_PPM OBGAM)" -- Watch the Pyramid Preview, video highlights from Pyramid's latest research report Mobile Gaming in Emerging Markets: Five Year Forecast and Impact Analysis (http://www.pyramidresearch.com/PyramidPreview090813.htm?sc=PR081809_P PMOBGAM)
As analyzed in Pyramid's recent report and the latest round of quarterly mobile data forecasts, mobile gaming is enjoying solid growth, from about 55 million gamers in 2005 to about 183 million in 2008. The global mobile gaming market is evolving fast on account of mobile adoption, and is expected to grow at a 16.6 percent CAGR during 2009 to 2014, reaching $18 billion in 2014. This growth will be the result of continued strength in emerging markets and increased usage in developed markets. A wider range of business models are gaining traction to exploit this opportunity while addressing issues such as piracy and affordability.
Mobile Gaming in Emerging Markets: Five Year Forecast and Impact Analysis is part of Pyramid's research report series. A blend of primary research and qualitative analysis, Pyramid's research reports offer comprehensive coverage of the fixed and mobile communications space and enable those in the communications industry to stay ahead of changing market dynamics. Purchase this report online (http://www.pyramidresearch.com/store/RPMOBILEGAMING0907.htm?sc=PR081809_PPMOB GAM) or through Amalia Vega at firstname.lastname@example.org.
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