Friday, April 15, 2011

Apple and Google Capture U.S. Video Game Market Share in 2010

Apple iPhone and Android smart phones are taking game revenue and market share from dedicated mobile game playing units, a new analysis by Flurry suggests. From 2009 to 2010, iOS and Android game sales increased from five percent to eight percent market share within the U.S. video game market.
Flurry iOS Android USvideoGameShare 2010
Flurry estimates that iOS and Android game revenue increased from $500 million in 2009 to more $800 million in 2010. Of this, the significant majority of revenue was generated by iPhone games.

Flurry estimates that retail PC game revenue was $700 million in 2010. That implies that smart phone and tablet game revenue has surpassed the U.S. PC game category, for the first time, in 2010.

Overall, total U.S. game revenue from 2009 to 2010 was relatively flat, totalling $10.4 billion and $10.7 billion, respectively. However, while console game revenue increased slightly, from about $7.4 billion in 2009 to $7.8 billion in 2010, the combination of declines in portable gaming software and a jump in smart-device app sales has squeezed the portable game category down from 24 percent market share in 2009 to just 16 percent in 2010.

It’s clear that prolific intalled base gains by Apple and Android devices, low priced games (including a very robust free-to-play model enabled by in-app purchases) and seamless digital distribution to games on devices so near to consumers 24-hours-a-day, is driving potent industry-disruption.

Over 2011, Flurry expects to see continued and significant smart-device game growth fueled by the recent launch of iPad 2, iPhone coming into distribution on Verizon, the expected release of iPhone 5, a relentless expansion of Android devices by leading OEMs across all major U.S. carriers, and Google’s enablement of in-app purchase billing, a proven key driver in iOS game revenue.

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