The portable game business will be worth a thumping great $2.3 billion in four years, according to a report released today by research firm, The Yankee Group.
Their ‘US Portable Entertainment Forecast’ report also found that half of all portable music players will be phone hybrids by 2009, yet mobile MP3 players will only account for only one-third of the portable music service revenue.
The Yankee Group predicts that dedicated digital audio devices like iPods and Walkmans will continue to be used more exclusively for their single purpose, while gaming hand-held devices and phone hybrids are both expected to grab revenue around the $2.3 billion mark by 2009.
With the line between wireless handsets and portable CE devices continuing to blur, the Yankee Group used data from both their Video Capable Device Survey and the Mobile User Survey to come up with what they describe as “the most comprehensive view into the portable device market.”
The US Portable Entertainment Forecast discovered that the convergence of wireless handsets and CE devices will force mobile manufacturers to both compete and partner with consumer electronics manufacturers.
“Within this new market dynamic, it will be crucial for companies to have a firm grasp of consumer behaviour and the competitive landscape,” said Mike Goodman, Yankee Group, senior analyst, Media and Entertainment Strategies.
“The major players must understand who will lead and who will follow in order to successfully plan future strategy and appropriately target their investments,” he added.