BWild |
December 27, 2012
Kapitall analysis highlights the growth of mobile gaming over the years
Mobile gaming may soon become the dominating force in the game industry. Kapitall, an online investment platform, has been tracking the decline of traditional console gaming and the sale of physical gaming products. As sales continue to drop, they are being replaced by sales made through digital platforms, such a Steam and Gamestop. Game developers that focus solely on mobile gaming, such as Glue Mobile and Zynga, are also seeing significant gains as traditional platforms begin to wane.
Retails sales dropping off for consoles and games
According to Kapitall, retail game sales have dropped by 25% year-to-date, while console sales have plummeted by 30% year over year. A volatile economic climate is to blame to some degree, but so too is the retail price of most video games, which can range from $30 to $60, depending on the publisher of the game. Mobile gaming is faring much better, largely due to the fact that most mobile games are very inexpensive, with many being completely free.
Mobile gaming accounts for only a fraction of the entire market
Despite the strong advent of mobile gaming, however, mobile games account for only a fraction of the overall market. Digital downloads of games developed for consoles and PCs are strong and continue to gain momentum as more consumers show favor for online shopping over traditional forms of commerce. For these people, online shopping is simply more convenient and does not actually mean they are spending less on games, only that they do not have to pick them up from a physical store.
Gamers still willing to shell out money for console and PC games
Kapitall notes that gamers are not likely to abandon consoles in favor of mobile gaming. Mobile games typically offer a very shallow, linear experience that is designed around repetition rather than in-depth gameplay. As such, titles from companies like Electronic Arts, THQ, and Ubisoft are likely to continue selling well, even if those sales are not actually physical.
FTC issues amendments to COPPA that could affect mobile gaming
Earlier this month, The Federal Trade Commission (FTC), a U.S. agency committed to promoting consumer protection, issued a call to the mobile applications industry to bolster their security measures for applications that are designed for children. Mobile gaming application are rampantly popular among children, and the FTC believes that the majority of these applications do not have adequate security measures in place to protect the information of consumers. The agency has released amendments to the Children Online Privacy Protection Act (COPPA) this week detailing some of the changes that must be made to mobile gaming and the applications business in general.
Developers banned from collecting information from children
According to the COPPA amendments, mobile gaming applications are completely forbidden from collecting personal data from users that are under the age of 13. Developers will have to received parental consent in order to obtain this information. The ban keeps mobile gaming applications from collecting geographic information as well in an attempt to provide young consumers with another layer of protection. Geographic information is often used in marketing to target specific demographics.
Developers tasked with securing personal information
The changes to the COPPA law also close a loophole that allowed applications to collect a wide assortment of information from consumers. These applications often use third party solutions to acquire personal information from users. The FTC notes that developers and applications providers will need to take reasonable steps in securing the protection of a child’s personal information and ensure that this information is kept confidential.
COPPA changes may be difficult to comply with due to consumer honesty
Changes to COPPA may have an impact on the mobile gaming sector, but app developers are likely to adapt well to the changes. There are concerns that children often use mobile applications without the consent of their parents. Protecting the information of young consumers is largely linked to the honesty of these consumers, which can be a problematic issue as young consumers tend to bend the truth in order to gain access to applications that may not be suitable for their age group.
