Pachter: Mobile games are a fad, EA's emphasis on sector 'misplaced'

Some people in the video game industry predict the mobile games business could eventually grow to topple the handheld gaming market, Wedbush Morgan disagrees. In its July industry report, analyst Michael Pachter estimates the mobile games industry is currently closer to $2 billion and, even with expected growth, the market may only expand to $4-6 billion in the next three to five years.

In a section titled "Mobile Phone Games are a Fad," Pachter explains that, while 1 billion iPhone applications have been downloaded across 31 million Apple products sold, "it is not evident that more than 20% of these downloads are games." Suggesting the iTunes App Store has generated "under $400 million in game downloads" in its first year. Pachter does predict the mobile game industry will grow at 25% per year for a few years, but will eventually fall as competing devices enter the market.

[Shane Bettenhausen]

I think Pachter is actually Hiphopgamer in disguise. Everything makes sense now...

[xabmol]

Don't insult HHG like that.

[KingKionic]

How many predictions Patcher been making lately? Seems he got a redbull boost. Will see if he`s right.

[darrensworld]

If he actually walked around on the streets or rode the subway he would see handheld gaming is growing fast. I see adults playing iphones, psp and ds on my way to and from work.

[Seraphim]

I wouldn't be so quick to call him wrong. Although at present his comments make absolutely no sense. But if you think about it he does make a good point in saying this. Eventually you have to believe that these casual phone gamers, and I use gamers loosely, will become bored of the same ole or not quite catch on to some of the more gamer centric (?, for lack of a better word/phrase) titles. Then again I guess the same was said about the Wii and there's no signs of that going away anytime soon.

There's always going to be some market for some type of trivial puzzles games and what have you but will the market for phone gaming really grow and strive for years to come? Will companies be able to sell Assassins Creed, MGS4, Dante's Inferno, etc, on the Iphone or other phones? Speaking of which I wonder how both MGS and AC have done. Plus when you get into phones games are phone based and carrier based and it's much harder to get a game going on multiple platforms than it is to say, create a PSP/DS game. Personally I'd rather get a GBA emulator up and running on my HTC Touch Diamond than to buy some of the games that offered to me. Then again, there's really nothing interesting for me to get on my phone either. Castlevania Order of Shadows is about the only game I'd be interested in but at the same time I'm not paying $10 for a cell phone game. ;)

Anyway just like Motorolla it's only a matter of time before the cookie, or Apple if you will, crumbles. Although it'll be much harder than it was for Apples new smart phone to dominate a dumb phone. It is only a matter of time. Which is where I see a predominate amount of content really being packaged and sold and a driving force behind phone gaming and exclusively, from the looks of it, what Pachter is talking about. But the biggest question imo is how long will this actually last? I think Pachter is misplaced in saying a few years when competing phones hit the market. How long until the none gamers out there grow bored and tired of playing games on their phones? You really have to believe it's only a matter of time and I think that is where Pachter is coming from.

[Tony P]

@darren: But this is not a statement against PSP/DS at all.

He's talking about mobile PHONE games specifically and how they will be unable to unseat tried and true handhelds like DS and PSP.

[bjornbear]

Mobile gaming a fad? Get real.

If anything mobile gaming is stronger now than EVER, they have cemented themselves into the modern culture we live in (i see KIDS with ds's and grown men w psp's everyday on the streets o.o...)

This isn't a prediction, its being blinded by numbers.

Use your damned brain - video games are fun - video games are video games, you play them on mobile devices. Another FAD won't substituite video games. They are here to stay .

I'm getting sick of this Patcher he angers me =(

[Nihilism]

omfg i never thought i'd agree with patcher....and although mobile games are gaining popularity i don't care for it, yes i know you disagree all you trendy wanna be iphone owners, i wish i was a walking parody of everything "fashionable like you"