The mobile-gaming market suffered a reversal of fortune in the second quarter of 2007 as revenues for title publishers declined by 9 percent sequentially, compared with 11 percent growth in the first quarter, according to iSuppli Corp.
While growth compared to the same period a year earlier was slightly positive, the second quarter dealt a significant blow to manufacturers that were expecting their profits to continue to rise, said David Carnevale, a vice president at iSuppli.
While the third quarter performance and the fourth quarter outlook appear optimistic, the pace of growth is slowing, causing great concern to content providers hoping to cash in on this market.
One of the main problems is that number of subscribers for mobile games remains quite small, the company said.
Despite the short-term setback, mobile gaming revenue is expected to nearly triple by 2011, growing to $6.6 billion, managing a Compound Annual Growth Rate (CAGR) of 23.2 percent from $2.3 billion in 2006.