What’s Up with Wireless?
Consumer behavior is different in Europe and, especially, in Asia, than in the U.S., a fact that plays into consumer acceptance of wireless gaming. Van Baker, an analyst at Gartner, notes that most consumers in Asia have long commutes (more than an hour a day) and take time off for lunch, which leaves them with long periods when they have no access to games or other data, except through their phones. In the U.S., on the other hand, connectivity is superior both at home and at work than it is over the wireless network, employees tend to eat in front of their computers and commutes are by car, where gaming is not practical. “You have less time to amuse yourself on the phone,” Baker says.
“There is a much greater culture towards playing games [in Asia], especially in the mobile environment,” says Nitesh Patel, senior analyst for wireless Internet applications at Strategy Analytics. Patel expects wireless gaming to take off in the U.S. only after cell phone penetration rises to 80% (from the current 50%) within the youth market, and after more young cell phone users have handsets that can handle rich media.
An Industry Push
Despite the slow start, several U.S. companies are bullish on the prospects for wireless gaming. “Handset manufacturers and carriers are all emphasizing the availability of games as a differentiating feature to attract customers,” says Doug Lowenstein, president of the Entertainment Software Assn. “They believe it will be a big driver of sales.” Cingular Wireless, Sprint, T-Mobile, Midwest Wireless, U.S. Cellular and AT&T Wireless are among the telecommunications companies involved in wireless gaming.
Cingular offers 300 gaming titles across its 20-25 game-capable phones, with users of individual devices able to download up to 60 of those. The company works with such developers as Jamdat Mobile, THQ Wireless, Digital Bridges, Game Loft (UbiSoft) and Informa. “It’s really kind of an interesting space right now,” offers Mark Nagel, senior product manager at Cingular Wireless. Games are currently offered on a pay-to-own model, but some multiplayer games will probably be marketed on a subscription basis.
Verizon Wireless sells games through its Get It Now service, which offers applications available for download. Charges for applications vary and airtime charges may apply when downloading, browsing, and using certain applications. In the case of AquaX, a game supplied by dwango wireless, Verizon subscribers with select Get It Now-enabled handsets can download a free two-minute demo or pay $3.25 for unlimited-use access.
As wireless service providers’ interest grows, so does that of handset makers. Several manufacturers offer phones that are gaming-enabled. Siemens and Nokia are among those that are producing game-focused devices. Siemens offers 3D gaming on several models, complete with exclusive titles such as Siemens 3D Rally and Independence Day. Personal digital assistants (PDAs) running on the Palm and PocketPC operating systems also can handle games, and several game makers have produced content for these handheld organizers.
Nokia’s N-Gage was introduced in 2003, with a software library from companies such as Sega (Virtua Cop and Alien Front), EA (Sims) and Vivendi Universal Games (Crash Bandicoot). Most evidence suggests the device has struggled so far to find an audience both in the U.S. and around the world. It is competing against powerful, marketing-driven companies, notably Nintendo and its GameBoy Advance; it has little distribution in stores and departments where games are sold (Nokia’s other products are sold in telecommunications outlets); it has a high price point compared to other phones and gaming devices; and it is big and bulky compared to other phones. In addition to gaming and phone functionality, the N-Gage can serve as a digital music player and FM radio and be used to browse the web.
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