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November 10, 2011

Google and Apple Combine to Overtake Big Wigs in Mobile Gaming Revenues

By Oliver VanDervoort, Contributing Writer

Google's Android (News - Alert) and Apple's iOS are obviously incredibly popular when talking about smartphones and tablets. What might surprise even the savviest of savvy tech consumers is just how popular they are compared to the rest of the gaming market. A new report shows that while Android continues to strengthen their hold on the smartphone market, they have also leaped into the top spot along with iOS as far as game sales.



After a 20 year hold on the gaming market by Nintendo and Sony, tablet and smartphone gaming have officially passed the torch when it comes to mobile gaming. According to the firm Flurry, Android and iOS devices will generate $500 million more in revenue than Sony and Nintendo in the mobile game arena. Flurry pointed out that the most striking data they found is just how quickly Android and iOS game sales are growing. 

Flurry's report says that iOS and Android were able to grow their market share of just 20 percent in 2009 to over 60 percent by the end of this year. In 2009, Google and Apple (News - Alert) saw $500 billion in revenue. In 2010, those companies saw revenues of $800 million and 2011 is projecting out to see profits of almost $1.9 billion in revenue.

Nintendo and Sony, in the meantime have seen their revenues on a steady decline over that same time period. In 2009, the two video game companies combined for $2.2 billion in revenues. In 2010 those revenues fell to $1.6 billion and is projected to fall to $1.4 billion in 2011. 

Of course, those numbers, when taken from all mobile gaming devices show that the mobile gaming market itself is quite healthy with projections showing that total revenues will be somewhere in the neighborhood of $3.3 billion.

While Nintendo and Sony can't be happy with this news, they also really can't be all that surprised. There were warning signs that mobile gaming on devices like the PSP was waning when Nintendo had to drastically slash the price of their Nintendo 3DS. 

Obviously one of the reasons Android and Apple have managed to make such strides is the many new devices on the market. Because of those advances, those two companies should be able to stay on top for a while.






Edited by Jennifer Russell
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