According
to the latest Pew Research data on the U.S. mobile market, upwards of 58% of
all Americans own a smartphone (some 42% of Americans own a tablet computer)
and gaming is the hottest vector in the space, so hot in fact that adult women
now make up 48% of the gaming market, largely on the strength of smartphone
proliferation. Market research by NewZoo and AppLift have pegged the mobile
gaming market phenomenology quite well with a $24B projection by 2016. A
forecast that tracks well with the Gartner data, which also has the mobile
gaming space doubling over a short period of time, with a revenue prediction
suggesting the market will expand from the roughly $13.2B seen last year, to
around $22B in 2015.
Either
way, it seems clear that mobile gaming is an extremely hot market, with growth
in Brazil, China, and India dominating the upward trend. Perhaps Morgan Stanley
read the tea leaves best in describing Microsoft’s (NASDAQ:MSFT) $2.5B
acquisition last week of Swedish indie developer Mojang AB, who made the smash
hit Minecraft, as a smart move for the company’s Xbox business. But look at the
fact that Minecraft is also the top paid app on both Android and iOS, where 40%
of the game’s downloads occur, and you will realize the move is about much more
than the console or PC markets, MSFT is moving to gain a sizeable foothold in
mobile gaming here and industry analysts are starting to take note. Such games
have an immediate appeal that cuts across language barriers (beside which,
in-game multilanguage technology has come a long ways, making it easy to
publish once for multiple languages irrespective of game engine in most cases)
and the mega-hot Chinese mobile gaming market, set to grow a whopping 93% this
year alone (projected 37.6% CAGR through 2018) according to market intelligence
firm, Niko Partners, is a juicy target, especially considering AppLift/NewZoo’s
data pegging China as 12% of the global market last year.
This
portrait of the mobile gaming market brings players like Consorteum Holdings
(CSRH) under a bright light indeed and the diligent work executed by CSRH in
particular over the last few years, seamlessly tying together a network of key
relationship and licensing agreements, is a compelling subject for the savvy
investor to study. CSRH is a mobile solutions provider with the kind of rich
transaction experience needed to move the ball down the field revenue-wise and
acts as a support player/publishing and distribution enabler. Moreover, the
company’s UMI (Universal Mobile Interface) solution is a verticals-spanning
powerhouse technology that supercharges CSRH’s mastery of mobile
payment/transaction solutions and content delivery.
Naturally,
the transaction management and mobile solutions prowess of CSRH lends itself
directly to the gambling end of the gaming spectrum and the company has wasted
little time enmeshing themselves therein, utilizing a bold marketing and
technology strategy that is designed to revolutionize the space. CSRH’s
wholly-owned ThreeFiftyNine Inc. subsidiary (359) for instance is the only 3rd
party developer cleared by the Nevada Gaming Commission (NGC). 359’s
client-server application has been vetted successfully by the NGC and thanks to
the company’s proprietary UMI platform, complete Geo-fencing and Geo-location
compliance has been satisfied.
Of
course, in this market, security is always a top watchword and the in-depth
security capabilities of the company’s hybrid client-server app makes it very
appealing for a pipeline solution to get gaming content onto mobile user’s devices.
359 uses a thin-client application to integrate a gaming provider’s backend
with the company’s own client-server framework, pumping the content out for
delivery and display, eliminating the cost and complexity for gaming providers
related to updating device applications due to new code or new devices. The
implications are staggering for anyone who understands the casino gaming space
and gambling market in general. From mobile lottery and offerings like the
Stations Casino’s Sportsbook application for sports and horse betting, to keno
and casino games like video blackjack, the UMI approach to getting content to
customers is lightweight but powerful.
A
striking example of how agile CSRH can be came in May this year with the
completion of development work on a mobile results app for live Keno with
partner XpertX, Inc., which is seen as one of the industry leaders in Keno
gaming today. The partners pulled off a comprehensive architecture from game
server and feature integration, to publishing and distribution, including
various support services like database management and hosting, in short time,
leading XpertX founder and President, Eric Thomassian, to be extremely
optimistic about live Keno being brought to mobile gaming in a
jurisdiction-tuned fashion. Consorteum Holdings’ recent mobile app development
contract signed between their 359 subsidiary and BetButler parent company, Bet
Clearer Ltd., likely could’ve saved BetButler. Whose sizeable customer database
is now up for grabs, with plans to settle with customers via a new company with
“no conditions on withdrawal,” according to a Bet Clearer spokesman.
For
more information, visit www.consorteum.com
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