GDC Mobile: Games independently of mobile operators?
Thursday, February 21st, 2008A fundamental change seems to be underway that will affect the way mobile games and other mobile content are distributed in the future. The keynote speakers at the GDC Mobile – among them CEO of Gameloft Michel Guillemot, head of Nokia’s multimedia division Anssi Vanjoki, former Managing Director EMEA of Glu Mobile Kristian Segerstrale, VP Content Licensing at Jamba Thomas Richter, and mobile games veteran and co-founder of the GDC Mobile Robert Tercek – all predicted the same thing: In future, only a small percentage of mobile games, if at all, will be distributed through mobile operators. They seem to be right; only one representative of a mobile operator was sighted at the well-attended event. Apparently none of the mobile operators were really interested in finding out more about Ovi, Nokia’s new portal for mobile games and other mobile content, or other new platforms for mobile games such as Google’s Android or Apple’s iPhone.
And this although mobile operators will be missing out on a huge opportunity, or perhaps even the business model that will dominate the future. Revenue from mobile voice services has been on the decline for years, and the future is clearly in mobile data services. All the analysts agree on this. What is particularly remarkable is that mobile operators have always protested that they have not just been a “pipeline” for mobile content, but have actively cultivated the market.
Who will make money from mobile games in future?
Yet this is exactly where the mobile operators have pushed an entire industry into a corner with high data transfer charges, low margins for content suppliers, and last but not least their restrictive policy on which mobile games are offered for sale and which handhelds are supported. In particular, the fluctuating quality of mobile games on offer (i.e. those selected and sold by mobile operators) and hidden data transfer costs have put off many consumers and slowed down the growth of the mobile game market. Why a real music ringtone should cost far more than the original song in MP3 format is another thing that defies explanation.
So it’s no wonder that mobile game publishers, music publishers, and technology companies such as Nokia with the N-Gage and Ovi, Apple with the iPhone, and Google with Android are looking for ways to position themselves to take advantage of the opportunities the mobile games market promises for the future. Ultimately it will come down to the question of who has more clout: the mobile operators, with direct customer relations thanks to their control of the mobile networks and the possibility of easy payment via mobile phone bill? Or the manufacturers of mobile devices for which, thanks to the success of mobile Internet access, mobile games, ringtones and music can be purchased and downloaded directly from the Internet via Sideload, independently of mobile operators?
What remains to be seen is whether distributing mobile games through iTunes will really be more attractive for publishers and not face restrictions similar to those of distribution through mobile operators. It certainly gives one pause that neither Apple nor Google were at the GDC Mobile to promote developers’ interest in their new platforms. Does this mean that it was all just mobile castles in the air? At any rate, we from FISHLABS will take a close look at the new technologies, and as soon as the chance arises we will distribute our mobile games via the new channels.
Exciting things to come. Game on!
