Shipments of game-capable mobile phones are expected to reach...
Shipments of game-capable mobile phones are expected to reach 1.27 billion this year, an 11.4 percent increase from 2009, iSuppli said Tuesday. In comparison, combined console and handheld game system shipments are expected to be flat or down this year…
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versus 2009, it said. Home game console shipments are expected to increase 0.2 percent to 52.3 million, while handheld game system shipments are expected to fall 2.5 percent to 38.9 million, it said. “The formidable lead enjoyed by cellphones capable of gaming will continue in the years to come with no hint of decline, and their near-universal presence gives them the potential to become a viable competitive threat to dedicated gaming platforms, primarily handheld devices,” said iSuppli analyst Pamela Tufegdzi. While gamers who “prefer a superior gaming experience will always opt for either a console or handheld, sales of both platforms tend to rise and fall based on the vagaries of product development, consumer buying patterns and economic trends,” she said. Videogame system growth has stalled as the Nintendo DS and Wii, PSP and PS3, and Xbox 360 “reached a mature phase in their individual life cycles and have attained market saturation,” iSuppli said. Consumers have also been “reluctant to buy or upgrade to newer devices due to” high pricing, “the prevailing economic uncertainty of the times” and other factors, it said. In comparison, mobile handsets -- especially smartphones including the iPhone -- “continue to thrive and flourish,” iSuppli said. Mobile phones also have an “advantage of broad penetration” over dedicated game systems because “not everyone owns a gaming console or handset, but cellphones can claim widespread use,” it said. ISuppli said the coming release of the PlayStation Move and Kinect for Xbox 360 motion control systems could “breathe new life into the console space,” and help “to cushion the anticipated decline of overall current-generation consoles in 2011.” Microsoft, Nintendo and Sony are also “expected to launch next-generation consoles” in a few years, “as soon as late 2012,” it said. That will boost revenue and unit shipments of dedicated game systems “into 2014, when the console market will hit 59.9 million units,” iSuppli said. Digital revenue is also growing revenue for the videogame industry, increasing revenue streams via paid downloadable content, it said.