Mobile games picking up the slack of conventional consoles
The game industry in the U.S. is facing a slump, according to a study from the NPD Group. According to the market research and analysis firm, the trend of declining hardware, software, and accessories sales in the U.S. persists, sending ripples throughout the game industry. The study suggests that consumers are beginning to move away from conventional gaming systems, such as consoles, and have been more inclined to participate in mobile games. Much of the money that seems to be exiting the game industry, on the consumer level, seems to making its way to these mobile games rather than traditional gaming media.
Console and software sales are down in the US
NPD Group notes that total sales of hardware, software, and accessories in the U.S. game market were $810 million in February of this year. This is a decline from the $1.09 billion that the game industry had seen in the U.S. market only a year previous. Hardware sales, in particular, have dropped 36% over the past 12 months, despite the launch of new gaming systems, such as the Nintendo Wii and the Playstation Vita. Where consumers are no longer purchasing physical products, they are spending money on mobile games.
Mobile games and digital distribution eclipse hardware sales
Mobile games have come to account for a significant portion of the revenue being generated within the game industry. According to the NPD Group, mobile games, as well as digital distribution platforms and subscription services, now account for $1.2 billion in sales within the game industry. Several large publishers, like Electronic Arts, have seen significant success through digital distribution, as is the case with Dead Space 3. Mobile games, in particular, continue to generate a great deal of revenue for their developers and the publishers of these games.
Game industry begins to take mobile more seriously
Mobile games are expected to continue playing a large role in the U.S. game industry. They may one day come to dominate the industry as consumers continue to favor digital distribution and mobile gaming applications over conventional consoles and physical products. Many companies within the game industry have taken note of this trend and have been focusing much of their efforts on supporting mobile games so as to solidify their continued presence in their given market.
Mobile marketing report released by Millennial Media
Millennial Media, a mobile advertising firm, has released its latest 2012 SMART report, which highlights the trends that have emerged in the mobile marketing sector over the past year. Mobile devices are becoming more common, which has increased activity in the mobile marketing sector exponentially. More advertisers are looking to engage consumers through their mobile devices, and mobile marketing campaigns have been very successful in doing this in the past. Many advertisers are looking to maintain a strong presence in mobile marketing, but have been faced with significant challenges over the past year.
Advertisers using mobile marketing to maintain in-market presence
According to the report, 39% of advertisers around the world used mobile platforms in order to maintain their in-market presence. Mobile marketing is not only considered an effective way to engage consumers and encourage them to purchase new products; it is also an effective means of ensuring that consumers do not forget that particular products are available. Using mobile marketing to maintain in-market presence has proven somewhat successful for many advertisers, helping them sustain a constant connection with a wide range of consumers.
Brick-and-mortar store traffic on the decline
The report also shows that mobile marketing is being used to build brand awareness and drive traffic to websites. Relatively few marketers are using mobile marketing campaigns to promote in-store traffic. Those that are pushing in-store traffic are primarily operating within the restaurant and retail industries. While advertisers have found some success in driving consumer traffic to actual stores, many consumers prefer to shop using their smartphones and tablets, which has had a marked impact on the retail sector as a growing number of people opt to use their mobile devices to purchase products rather than visit an actual store.
Mobile commerce helping offset the decline of physical traffic for retailers
While physical traffic for retailers may be on the decline, the prevalence of mobile commerce has offset whatever losses retailers would see from this trend. Consumers are eager to purchase products through e-commerce sites, which has helped the retailer industry see impressive gains over the past year. Mobile commerce is expected to help retailers see promising growth in several sectors, as long as these retailers provide consumers with easy-to-use mobile commerce services.
