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MOBILE GAMING: a Framework for Evaluating the Industry 2000-2005 JUSSI-PEKKA PARTANEN Copyright (C) 2001 Gaptime Century, Ltd

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MOBILE GAMING: a Framework for Evaluating the Industry 2000-2005 JUSSI-PEKKA PARTANEN Copyright (C) 2001 Gaptime Century, Ltd MOBILE GAMING: A Framework for Evaluating the Industry 2000-2005 JUSSI-PEKKA PARTANEN Copyright (C) 2001 Gaptime Century, Ltd. MOBILE GAMING: A FRAMEWORK FOR EVALUATING THE INDUSTRY 2000-2005 Abstract (English) Author: Jussi-Pekka Partanen, Gaptime Century Ltd. Report title: Mobile Gaming:A Framework for Evaluating the Industry 2000-2005 Date: 15.06.2001 Pages: 110 A mobile game is a commercial product that is distributed to the customer using mobile operator’s network. The game is an interactive product; many kinds of entertainment services are not covered by this report, such as joke or comics services or the popular ring tone and logo services. What distinguishes mobile games from other kinds of entertainment services is that the interactivity creates so-called stickiness for the service. The games may be addictive and offer something more than “disposable” fun, as operator logos do. The target of this study is to give an introduction to the mobile gaming industry and build a framework for analysing the success of mobile game products and companies. Currently the mobile gaming industry is in the introduction phase. Many start-up companies are developing different games and technologies and believe that they will be the winners when the market moves from introduction to the growth stage. At this point the company must have the critical mass in order to flourish, otherwise the companies with bigger better partnering networks and marketing and sales forces are eating the smaller one. The framework depends on the following methods: the industry and mobile game life cycle model, value distribution in the value delivery network and external company analysis. In the study these methods will be applied to the industry segments taking factors such as technological development and mobile connection penetration in the target group of mobile games into account. The key findings of the study are that the players in the mobile gaming industry see the future scenarios very differently: some believe in text-based games and some believe that premium 3D-games will take over the market very soon. Very few companies have made definite strategies that they would be pursuing; it seems rather, that the industry is currently lacking persistence and changes the focus whenever a new technology is introduced. The framework introduced by this study can be helpful either for the companies entering the market or for the existing companies. It presents questions and problems that the management of a company has to tackle, if it wants to be successful in the industry. Keywords: Mobile gaming, wireless gaming Gaptime Century, Ltd. 2 MOBILE GAMING: A FRAMEWORK FOR EVALUATING THE INDUSTRY 2000-2005 About the author Mr. Jussi-Pekka Partanen works as managing consultant conducting research on mobile B-to-C services, especially in entertainment services and mobile gaming. He holds a master’s degree in computer science from Helsinki University of Technology specializing in telecommunications venturing. Gaptime Century, Ltd. is a consulting company, that offers software engineering and consulting services for companies related to IT and telecommunications industry. It is doing extensive research on various subjects to be able to apply the most recent industry knowledge in the projects. In Espoo, 6.6.2001 Jussi-Pekka Partanen Gaptime Century, Ltd. [email protected] +358 40 563 1296 Gaptime Century, Ltd. 3 MOBILE GAMING: A FRAMEWORK FOR EVALUATING THE INDUSTRY 2000-2005 ABSTRACT (ENGLISH)................................................................................................................................ 2 ABOUT THE AUTHOR ................................................................................................................................. 3 LIST OF FIGURES......................................................................................................................................... 8 1 INTRODUCTION.................................................................................................................................. 10 1.1 BACKGROUND .................................................................................................................................. 10 1.2 RESEARCH PROBLEM........................................................................................................................ 10 1.3 OBJECTIVES OF THE RESEARCH........................................................................................................ 11 1.3.1 Building the framework............................................................................................................ 11 1.4 SCOPE OF THE RESEARCH................................................................................................................. 12 1.5 RESEARCH METHODOLOGY.............................................................................................................. 12 1.6 FRAMEWORK.................................................................................................................................... 12 1.6.1 Value delivery network method................................................................................................ 13 1.6.2 External analysis of companies ............................................................................................... 14 1.6.3 The life-cycle model ................................................................................................................. 15 1.7 STRUCTURE OF THE STUDY .............................................................................................................. 16 2 MOBILE GAMING............................................................................................................................... 17 2.1 DEFINITIONS..................................................................................................................................... 17 2.2 MOBILE TERMINAL TYPES................................................................................................................ 18 2.3 GAME TYPES .................................................................................................................................... 19 3 CURRENT MARKET SITUATION ................................................................................................... 20 3.1 INDUSTRY STRUCTURE .................................................................................................................... 20 3.1.1 Value chain .............................................................................................................................. 20 3.2 BUSINESS LOGICS ............................................................................................................................. 21 3.2.1 Revenue model and value distribution..................................................................................... 21 3.2.2 Content providers..................................................................................................................... 21 3.2.3 Service providers ..................................................................................................................... 22 3.2.4 Transmission providers............................................................................................................ 22 3.3 CURRENT TECHNOLOGIES ................................................................................................................ 22 3.3.1 Network Technologies.............................................................................................................. 22 3.3.2 Service Technologies ............................................................................................................... 23 3.3.3 Middleware Platforms ............................................................................................................. 24 3.3.4 Operating Systems ................................................................................................................... 24 Gaptime Century, Ltd. 4 MOBILE GAMING: A FRAMEWORK FOR EVALUATING THE INDUSTRY 2000-2005 3.3.5 Game technology ..................................................................................................................... 24 3.4 PLAYERS IN THE INDUSTRY.............................................................................................................. 25 3.4.1 Content providers..................................................................................................................... 25 3.4.2 Service providers ..................................................................................................................... 25 3.4.3 Transmission providers............................................................................................................ 26 3.4.4 Handset manufacturers............................................................................................................ 26 3.4.5 Middleware software developers ............................................................................................. 26 4 INDUSTRY EVOLUTION ................................................................................................................... 28 4.1 TRENDS IN MOBILE GAMING ............................................................................................................ 28 4.1.1 Java.......................................................................................................................................... 28
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