This IDC study provides an analysis and five-year forecast of the U.S. wireless gaming market. The study provides a discussion of market dynamics, including changes and opportunities for carriers and, to a lesser extent, publishers, handset OEMs, and supply chain technology and service providers.

Mobile gaming is evolving into a significant new channel through which network operators, game developers, and other value chain constituents are monetizing consumer interest in entertainment applications and services. As established console and PC game developers and large media companies push into mobile, it appears some of the more prominent mobile-specific game developers will be acquired, streamlining logistics, development, and delivery processes.

Although one-time-purchase games should remain the dominant revenue segment through the forecast period, IDC models suggest that subscription/community-based revenue should gain ground and total 43% of all mobile gaming revenue by the end of the decade. Game purchasers are forecast to increase to 50 million customers/subscribers by 2010. Ongoing challenges include handset fragmentation, DRM and porting costs, dynamic advertising integration, and noncellular device competition.

"Teens and adults under 24 years of age remain the core mobile gaming constituent. Those with advanced handsets also show a greater likelihood of purchasing and playing games," says Lewis Ward, research manager of IDC's Mobile Consumer Services: Entertainment service. "Although game packs/bundles and monthly subscription models are gaining traction, over 75% of games currently purchased are done so via the one-time-fee, unlimited-usage model. Our latest survey found that puzzle/strategy/RPG titles topped the list in terms of popularity and that men were slightly more likely to buy games than women were."