March 25, 2011

Gameloft: TV, Amazon Are Next Boom In The Gaming Market

The top executive for Gameloft SA said that he sees its growth coming from the just-launched Amazon AppStore and from games played on televisions without consoles, according to a Reuters report.

Gameloft, a French video game publisher, is turning to Amazon.com Inc.'s new store to boost sales on Google's Android software platform.

Gameloft Chief Executive Michel Guillemot told Reuters that Amazon is where consumers are comfortable using their credit cards to pay for everything from toasters to online movies, and it provides the perfect platform for gaming.

"The Amazon ecosystem is controlled where we don't find too many pirated version of our games or malware games, so for the consumers, it will be a safer place to come and get applications," he said.

According to research firm Gartner, the market for mobile games is expected to grow to $11.4 billion by 2014.

Gameloft is one of the few publicly traded companies to make most of its revenue from the mobile market.  The company said that about 95 percent of its revenue comes from mobile games.

Gameloft Chief Financial Officer Alexandre de Rochefort told Reuters in an interview that TV games will be an important revenue growth starting in 2012.

Panasonic Corp. and Samsung Corp. have featured Gameloft's games on their new Internet-connect TVs.

"Connected TVs and a consolidated Android store should be a significant benefit to Gameloft's growth story," BMO Capital Markets analyst Ed Williams told Reuters.

Rochefort said that sales on the Android platform could one day mach revenue from Apple devices, which was 22 percent of the company's revenue in 2010.

The company said that many of its games will be carried on Nintendo's upcoming 3DS e-shop, which is a digital store Nintendo is launching for users to download content for its 3D capable handheld device.

Gameloft said it has an edge over other companies in this market because of its 10 years of mobile games experience.

"The good news is that social games are planning to get to the mobile space over the next few years. We know this mobile space very well and we'll be able to leverage it," Guillemot told Reuters.


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