U.S. Mobile Game Revenue Passed Portable Games In 2011

A new report from mobile analytics firm Flurry finds
that explosive growth in the iOS and Android gaming markets now has them
drawing more U.S. software revenue than traditional portable systems
from Sony and Nintendo.

Using data from NPD as well as Flurry's own usage analysis on 125,000 mobile apps, the company reports
that iOS and Android will make up 58 percent of all U.S. portable game
revenue in 2011, compared to just 34 percent in 2010 and 19 percent in
2009.

Nintendo's DS line makes up an estimated 36 percent of all U.S. portable
software revenues in 2011, down from 70 percent in 2009, while the
Sony's PSP accounts for 6 percent of revenues, down from 11 percent two
years ago.

The total size of the portable and mobile game software market has also
increased in that time, from $2.7 billion in 2009 to an estimated $3.3
billion this year, Flurry says.

Flurry noted the increasing prevalence of freemium titles on mobile platforms
as the driving force behind the growth in iOS and Android gaming
revenue, combined with widespread hardware adoption for the platforms.

"Within the portable category, an abundance of digitally distributed
free and $0.99 games, available on hardware that is both comparably
priced and more powerful than traditional portable game devices, better
appeals to many consumers," Flurry's Peter Farago writes in a blog post.

"As a result, the days of paying $25, or more, for a cartridge at a retail store may soon end."

Dropping portable revenues were partially responsible for Nintendo projecting its first ever fiscal year loss last month.