The mobile gaming industry has hit a bump on its road to
growth.
Revenues for publishers declined by 9 per cent in the second
quarter, compared to the first, when revenues were up 11 per cent on the fourth
quarter, according to the iSuppli research firm.
Its report says the pace of growth is slowing and one of the
main problems for the industry is the small number of subscribers for mobile
games. It suggests the demographic could be widened if games could take
advantage of phones and be more networked and multiplayer.
A week ago, shares in Glu Mobile fell 33 per cent after it
predicted a fourth-quarter loss of 6 to 7 cents a share, compared to Wall
Street expectations of a loss of 2 cents.
It blamed slowing business in Europe where carriers were
ordering fewer games as they changed the way they managed their businesses.
Analysts said the industry was suffering from growing pains.
ISuppli suggests carriers are turning to the mobile video market instead, which
it says holds the most upside potential of premium content categories.
Greg Ballard, Glu
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