The advent
of ubiquitous smartphone technology has created an unprecedented pipeline for
gaming industry developers to reach massive new audiences through the mobile
device and a recent study of the gaming industry by noted sector trade group,
the Entertainment Software Association, has even detailed how mobile gaming
growth outstripped the broader U.S. economy between 2009 and 2012 by a factor
of four. Projections of there being a whopping 1.75B smartphone users globally
by year’s end from eMarketer, combined with DFC Intelligence’s 59% growth projection
for the global gaming business by 2018, gives investors very clear forward
guidance on the health of the mobile gaming space.
Newzoo’s
estimates from last month on the mobile gaming market indicate that mobile
revenues will trump the console market as early as next year, with mobile
gaming moving from around $25B this year, to $30.3B in 2015. Newzoo’s
projections are also in-line with the SuperData Research figures for 2014,
showing a more conservative $21.1B for 2014, and SuperData sees mobile gaming
moving up to around $40B within the next three years alone. Also among the
noteworthy data points, we see the possibility that Apple’s (NASDAQ:AAPL)
revenues could potentially double those of the legendary console and game
developer behind titles like Super Smash Bros., as well as platforms like the
Wii U and DS/3DS, Nintendo (OTCM:NTDOY), as early as this year. Apple is on
track to generate some $4B in revenue from games this year (Nintendo’s
shrinking game tally was around $2.4B last year), with Google (NASDAQ:GOOGL)
coming in a close second, at around $3B, clearly demonstrating how big mobile
has become.
However,
one of the consistent problem areas in the mobile gaming industry has been the
cost and development time required to execute all aspects of a given product’s
content/design across an increasingly dizzying array of platforms. While Flash
technology has long been an industry favorite, used to execute Facebook
versions of hit games like Candy Crush Saga, that game’s developer, King
Digital Entertainment, had to develop their own proprietary C++ based mobile
game engine, fiction factory, to properly execute the full-feature standalone
versions for iOS and Android. This development approach is pretty much the
industry standard, but represents a great deal of overhead that will only
increase as more mobile users become gamers and more games are developed,
updated, and patched.
ThreeFiftyNine
(359), the development subsidiary of Consorteum Holdings (OTC:CSRH), has a
powerful, device-agnostic, universal solution for mobile gaming developers that
will allow them to publish once and still deliver content to any mobile device,
with the intended display format intact. 359’s mobile hybrid solution, the
Universal Mobile Interface (UMI), allows developers to forego the costly
reprogramming required (not to mention the hassle for users who simply have to
download the app one time and then can bypass updates) whenever they want to
push new content to users or update their application’s content, further
enabling mobile content providers to more easily reach the largest possible
customer base.
Moreover,
359’s UMI solution provides enhanced security features by isolating the
client’s servers from mobile devices via “Thin Client Server” architecture.
This is particularly important for compliance management in the rapidly growing
world of online gambling, an aggregate space estimated by H2 Gambling Capital
as climbing to $44B per annum by next year alone, up sharply from just $34B in
2012. Juniper Research analysis goes even further, explaining that online
wagers via mobile from all platforms is expected to hit $100B by 2017, creating
a huge opportunity for a company like CSRH, whose own platform has been
approved by the gold standard in regulatory gaming, the Nevada Gaming Board.
For more
information on Consorteum Holdings, visit: www.consorteum.com
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