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WirelessDevNet.com Press Release
Strategy Analytics: Venture Finance Pumps Into Mobile Games Publishers
BOSTON & LONDON--Aug. 25, 2004--
Strategy Analytics, the global research and consulting company, today released, "Carrier Retail Channels Control $8 Billion Mobile Game Opportunity," a Wireless Internet Applications (WIA) Service report providing in-depth analysis of the explosive mobile games market. Over the next five years there will be an expected 6-fold growth with downloadable games generating 82 percent of this dynamic $8 billion market.
Mobile entertainment publishers are clearly back in vogue as the number of Java and BREW capable handsets rises from 186 million units this year to over 1 billion units in 2009. Senior Analyst, Nitesh Patel, notes, "We are beginning to see carriers and games companies announce greater levels of usage of these handsets for downloading games. For example, in the five months leading up to May 2004, Verizon Wireless customers have downloaded more than 12 million games."
Strategy Analytics expects that active users of downloadable games will grow from 32 million this year to reach 220 million in 2009. Patel adds, "Confidence in the sector is beginning to increase significantly. The past four months has seen a flow of private finance into the coffers of leading mobile games distributors, the likes of which has not been seen since the halcyon days of the late 1990's."
In June 2004, distributor Mforma announced $44 Million of financing for its first external round of VC funding co-led by General Catalyst Partners, Bessemer Venture Partners and eFund LLC
In July 2004, US publisher Sorrent announced that it had raised $20 Million in a third funding round led by BA Venture Partners
In July 2004, Canadian mobile publisher, Airborne Entertainment, announced a new financing deal worth $22 Million led by Insight Venture Partners
In August 2004, IN-FUSIO announced that it had raised $27 million in its latest round of financing led by Insight Venture Partners
David Kerr, Vice President of the Strategy Analytics Global Wireless Practice, adds, "Although the revenues of leading publishers such as JAMDAT and Gameloft are currently little more than rounding errors when compared with the sales figures of large, established video game publishers like Electronic Arts and Atari, the potential for growth is high. With scale, distribution agreements, brand licensing and management expertise playing an increasing role in mobile games publishing, some leading firms have emerged whose basis for competition is sufficiently robust to be considered lower risk and worthwhile of VC investment. Insights into carrier distribution strategies, competitor benchmarking and the potential threat from emerging platforms for multiplayer and 3-dimensional games are critical to survival. Strategy Analytics' Wireless Internet Applications team provides ongoing analysis and survival strategy workshops for players in the mobile entertainment space."
About Strategy Analytics
Strategy Analytics, Inc., a global research and consulting firm, provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Newton, MA and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics, Broadband, Telematics, Wireless Strategies and Enabling Technologies. For more information, see www.strategyanalytics.com.
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