M:Metrics: What Ails the Mobile Games Industry?

M:Metrics offers up a whole bunch of data that finds "the audience for downloaded mobile games is stagnating." The firm has "found that pricing, choice and lack of interest were the top reasons cited by players of downloaded games in the U.S., U.K. and Germany as the reasons they did not buy another game in the month of March."

You can add to this the fact it is really hard to find good games on the carrier decks. Most are crap and at $5-10 a pop, you'll get burned rather quickly trying to find something good to play. The carriers and game developers need to find a better way of getting demos into the hands of consumers so they can try out the games before purchasing.

According to M:Metrics, "4.2 percent of U.K., 2.5 percent of German and 2.7 percent of U.S. mobile subscribers downloaded a game in March, a figure that has remained relatively constant month over month across all geographies."

M:metrics suggested that "games purchases are directly tied to handset purchases, and fluctuate in relation to the device sales cycle. A significant portion -- as much as 30 percent -- of those who downloaded games in the month were first-time game downloaders. The rate at which new subscribers are being drawn into the market is relatively low, with between 0.5 percent and 0.8 percent of mobile subscribers downloading their first mobile game in the month. The level of repeat purchase is between 20 percent and 30 percent of the universe of downloaded games players."

Mobile Games Consumption: March 2006
Activity	Germany (000's)	Percent German Subscribers	U.K. (000's)	Percent U.K. Subscribers	U.S. (000's)	Percent U.S. Subscribers
Played Mobile Game	9,910	22.8%	13,691	31.8%	45,042	24.2%
Played Downloaded Mobile Game	3,097	7.1%	4,347	10.1%	15,514	8.3%
Downloaded Mobile Game in Month	1,092	2.5%	1,813	4.2%	4,957	2.7%
First-Time Downloaders	236

Seamus McAteer at M:Metrics said, "This data shows that operators must do a better job at converting those that played a mobile game into a player of downloaded games. There is no shortage of new titles being launched on operator portals, many offering innovative game play and superior production value, but these do not appear to be resonating with consumers. Subscribers that had played a downloaded title cite the pricing, lack of interest and selection as reasons they did not purchase another title in the month of March."

Germany: March 2006
Top Reasons for Not Purchasing New Game in March 2006*	Subscribers (000's)	Percent of Subs Not Purchasing Downloaded Game
Games were too expensive	994	39.90%
Interested, but couldn't find right game for me	508	20.40%
Not Interested	436	17.50%

U.K.: March 2006
Top Reasons for Not Purchasing New Game in March 2006*	Subscribers (000's)	Percent of Subs Not Purchasing Downloaded Game
Already have downloaded games I like	1,113	36.12%
Games were too expensive	732	23.75%
Interested but couldn't find right game for me	461	14.95%

U.S.: March 2006
Top Reasons for Not Purchasing New Game in March 2006*	Subscribers (000's)	Percent of Subs Not Purchasing Downloaded Game
Already have downloaded games I like	4,483	39.72%
Games were too expensive	2,350	20.82%
Not interested	1,958	17.35%

*Among those who played a downloaded game in the last month only.

Paul Goode at M:Metrics added, "Despite the growing selection of games on the operators' portals, consumers still are not finding games that appeal to them and are complaining that prices are too high. Faster networks and devices with larger screens will help improve the discovery process, operators and games publishers must do a much better job of marketing and merchandising mobile gaming content."

M:Metrics found that "Males 18-34 are the largest audience for game downloads, accounting for 35 percent of the U.S market, 30 percent of the U.K. market and 33.7 percent of the German market." The top five genres of games in all three markets are in the chart below:

Genre of Games Currently Installed on Handset: March 2006
Germany	Subscribers (000's)	U.K.	Subscribers (000's)	U.S.	Subscribers (000's)
Card	871	Arcade puzzle	1,829	Arcade puzzle	7,463
Arcade puzzle	833	Retro arcade	1,343	Card	4,612
Quiz	773	Card	1,086	Casino	4,131
Strategy	716	Sports	1,058	Retro arcade	3,414
Board	664	Board	876	Strategy	2,634

U.S. Mobile Subscriber Monthly Consumption of Content and Applications M:Metrics Benchmark Survey: March 2006
Activity	Subscribers (1000s)	Pct	Pct Change
Sent Text Message	64,834	34.9%	0.8%
Used Photo Messaging	20,186	10.9%	2.7%
Browsed News and Information	18,471	9.9%	(1.9%)
Purchased Ringtone	18,349	9.9%	(1.5%)
Used Personal E-Mail	13,297	7.1%	(3.0%)
Used Mobile Instant Messenger	11,710	6.3%	(3.0%)
Used Work E-Mail	7,592	4.1%	(7.0%)
Purchased Wallpaper or Screensaver	6,968	3.7%	(4.4%)
Downloaded Mobile Game	4,957	2.7%	(9.7%)

Source: M:Metrics, Inc., Copyright © 2006. Survey of U.S. mobile subscribers. Data based on three-month moving average for period ending 31 March, 2006, n= 35,500

U.K. Mobile Subscriber Monthly Consumption of Content and Applications M:Metrics Benchmark Survey: March 2006
Activity	Subscribers (1000s)	Pct	Pct Change
Sent Text Message	35,880	83.4%	4.7%
Used Photo Messaging	11,752	27.3%	7.9%
Browsed News and Information	4,787	11.1%	9.2%
Purchased Ringtone	2,690	6.3%	0.8%
Used Personal E-Mail	2,582	6.0%	6.1%
Downloaded Mobile Game	1,813	4.2%	9.7%
Used Mobile Instant Messenger	1,500	3.5%	13.7%
Used Work E-Mail	1,110	2.6%	1.0%
Purchased Wallpaper or Screensaver	1,055	2.5%	2.3%

Source: M:Metrics, Inc., Copyright © 2006. Survey of U.K. mobile subscribers. Data based on three-month moving average for period ending 31 March, 2006, n= 15,025

German Mobile Subscriber Monthly Consumption of Content and Applications M:Metrics Benchmark Survey: March 2006
Activity	Subscribers (1000s)	Pct	Pct Change
Sent Text Message	34,523	79.4%	3.1%
Used Photo Messaging	8,426	19.4%	0.7%
Purchased Ringtone	3,140	7.2%	(0.7%)
Used Personal E-Mail	2,777	6.4%	2.9%
Browsed News and Information	1,780	4.1%	2.6%
Used Mobile Instant Messenger	1,509	3.5%	14.3%
Purchased Wallpaper or Screensaver	1,285	3.0%	(4.1%)
Used Work E-Mail	1,256	2.9%	4.7%
Downloaded Mobile Game	1,092	2.5%	(2.8%)

Source: M:Metrics, Inc., Copyright © 2006. Survey of German mobile subscribers. Data based on three-month moving average for period ending 31 March, 2006, n= 15,303