Tag: game industry

Mobile games may hurt the retail sector

| February 5, 2013

Mobile games create problems for game retailersMobile games have found success, perhaps at the expense of retailers

There can be no denying the utter success that mobile games have seen in recent years. The game industry has begun to shift to be more accommodating of mobile consumers, while many developers have made a name for themselves through an exclusive focus on mobile games. Even developers that have traditionally clung to console games have begun entering into the mobile space. While mobile games have solidified the success for many in the game industry, it may take a disastrous toll on the retail sector.

Analysis suggests that game retailers may face uncertain future

Games are not the only things that are changing in the game industry; the way people get their games is evolving as well. In the past, consumers would have to visit physical stores to pick up games that they had been looking forward to. With the advent of mobile technology, and an increasing focus on Internet business, these stores are beginning to see less traffic. With mobile games pushing to dominate the game industry, these stores may actually see closure, according to 24/7 Wall St., a market analysis and news group.

Gamestop experiences turbulence in game market

Gamestop, a U.S.-based game retailer, may fall victim to the success of mobile games and the changing game industry landscape. For several years, Gamestop has sold games to avid consumers and boasts of more than 4,400 stores throughout the U.S. The company has done very well in solidifying its position in the game industry through its various partnerships with game developers. Despite these partnerships, however, the retailer has been seeing less in-store traffic, though its Internet traffic has increased significantly over the past several years.

Retailer expected to close 500 stores in the future

In November of 2012, Gamestop announced that it would be closing 200 of its stores in 2013. Mobile games were cited as part of the reason behind the closing of these stores. The retailer is projected to close an additional 500 stores in  the coming years due to the impact of mobile games and other elements within the game industry. The company’s gross profit for the third quarter of 2012 show that its three core product segments have been hit hard. These segments are new hardware, new software, and used products.

Mobile gaming investments rekindled

| January 31, 2013

investors mobile gamingInvestors taking a bold move on mobile gaming

For the past several months, investors around the world have been leery of mobile gaming and mobile ventures of all kinds. Many mobile-centric companies have been unable to deliver on their ambitious promises, which has translated into significant losses for several investors. These failures have done little to bolster the confidence investors have in the mobile space, but some of these investors are beginning to show a change of heart. Several parties have begun focusing on the battered mobile gaming and social gaming companies that saw turbulence throughout 2012.

Zynga continues to produce despite fall from grace

Zynga, the former champion of social mobile gaming, fell from grace in 2012.The company’s focus on creating addicting social games that borrowed heavily — at times too heavily — from other popular titles in the game industry eventually lost the favor of consumers. As people began to criticize Zynga, Facebook began to pull back its support of the developer. An exodus of investors had added insult to injury to the former gaming titan, but the developer continued its work.

Investors throw lifeline to Zynga and Glu Mobile

Zynga’s tenacity seems to be attracting the attention of new investors. Shares in the company have risen by 12.5% on Monday, the heaviest day of trading the developer has seen since November. This may be due to the developer’s rekindled focus on producing unique games of high quality for mobile consumers. Zynga is not the only developer that is seeing renewed investor interest. Glu Mobile, a developer that had been seeing trouble akin to that of Zynga, saw its shares spike by 16.5% on Monday.

Mobile gaming continues to be attractive market

Despite the problems some companies have been facing, mobile gaming is still considered a very powerful and lucrative market. Investors, though cautious, have shown that they are willing to take risks on developers that had proven their ability to establish a strong presence in this market in the past. If investor support for Zynga and Glu Mobile continues to grow, the two companies may soon find themselves back on top of the proverbial totem pole of mobile gaming.