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Gameloft, EA Insist Gaming Market on the Rise

December 4, 2008

It was announced on Wednesday that Electronic Arts and Gameloft, the world’s two biggest mobile gaming firms, that the market is doing alright, only a day after their next principal rival, Glu Mobile, made some sever cuts to their company.

Glu Mobile chief executive Greg Ballard announced on Tuesday that he is reducing both staff and his own salary as an answer to “increasing economic headwinds facing our industry.”

However, the company’s rivals contradicted this on Wednesday, insisting that the mobile gaming sector is flourishing.

“Concerning the iPhone, mobiles etc, we are not worried, it’s all going well,” a Gameloft spokeswoman stated, when inquired about a fourth-quarter demand, but insisted that it is too early to make a statement over the sales of console games.

Barry Cottle, head of EA’s mobile business, added that the rising adoption of smartphones is key factor for their sales, implying that a decrease in handset market sales is not hurting the industry.

“Mobile games are actually thriving right now,” Cottle stated at the ‘Nokia World’ mobile industry conference in Barcelona.

He said it is way too soon to calculate approximately the potential impact of deteriorating economies, but the company continues to thrive in all areas in spite of a drop in handset sales in Europe.

The mobile games industry is anticipating a larger adoption of innovative platforms such as Nokia’s N-Gage, Google’s Android and Apple’s iPhone to improve the market next year as allowing consumers to discover and purchase games with ease.

Glu Mobile added in its statement that it will prolong its efforts to expand on their games for the three platforms regardless of cost cuts other places.

Nokia released its N-Gage platform earlier in the year, although it has just started to get steam as the company has begun to promote new smartphone models with a pre-installed gaming service.

“We like N-Gage. We’re bullish on it,” Cottle said. “As it gets incorporated the addressable market continues to grow.”

“We really believe the N-Gage experience is the right one — we are going to see mass market adoption,” he added.

EA announced that it has created several games for Google’s Android, but sells them through a third party system.

“As soon as they have a billing system in place we’ll launch even more games,” Cottle noted.

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