Consorteum Holdings is poised to profit off the burgeoning mobile gaming market with an adept software marketing and licensing strategy. Having built a network of key relationships and licensing agreements over the last few years, CSRH is now in ready to carve off a sizeable chunk of this market, which is growing so fast that projections vary considerably from analyst to analyst.
The Gartner report from October of last year pegs the 2013 mobile gaming market at around $13.2B globally and estimates a doubling by 2015 to around $22B. That same report also identified mobile to be the fastest growing segment of the $93B video game market, which is pegged as growing at 20% YoY by the recent SuperData Research analysis, with China approaching and even set to overtake the U.S. market in coming years ($3B and $3.2B respectively for 2013). Meanwhile, the mobile gaming market’s impact in countries like Russia, which has seen an 800% leap in the last three years according to Mail.ru Group and Newzoo, illustrates further just how white-hot the sector is.
Moreover, the demographics of mobile gaming are changing rapidly as well. Even as some 86% of time the average user spends on their mobile device is now in apps, mostly gaming (clearly telegraphing the app revolution’s metrics), recent data from Flurry shows that women are more likely to do in-app purchasing, while being some 35% more likely to also keep right on gaming as their male counterparts log off (women have a 42% retention rate as well according to Flurry). The viral success of the Kim Kardshain Hollywood game, which blew industry expectations out of the water, generating upwards of $1.6M in the first five days (largely through in-app purchases), shows not only how far women have progressed into the territory of mobile gaming, it shows how in-app advertising is the real revenue story.
The mobile platform employed by CSRH’s wholly-owned subsidiary, ThreeFiftyNine (“359”), is ideal for mobile gaming, in that it utilizes a thin-client architecture (as opposed to typical native apps), where a great deal of the computational or information processing workload is handled via the remote server. This thin-client architecture results in an improved user experience, greater fluidity and response from the app. The server does the lion’s share of the heavy lifting when it comes to content, overcoming any specific hardware/OS or performance limitations of the user’s mobile device when it comes to running the app, fully leveraging the company’s sophisticated Universal Mobile Interface (UMI) to ensure consistency across devices and deliver display content optimally. The UMI is the first content delivery engine for mobile engineered around web-standards to be carrier/OS/device agnostic and represents an excellent pipeline solution for shoving content out to user’s devices. This develop once/deploy anywhere pipeline solution is a Godsend to developers and users alike; developers can focus on creating great content and not worry about how it’ll end up displayed, and users get great gaming experiences.
Further enabled by a robust cloud architecture, 359’s mobile platform is able to offer users an experience driven by on-demand remote resources, improving app performance and allowing for a gaming experience that is right at home in the emerging age of streamed gaming, where companies like NVIDIA Corp. (NASDAQ: NVDA) and Kinoni (with their KinoConsole) are already making huge waves on the PC gaming side of the industry. Mobile gaming has stepped to the forefront as the major disruptive force in apps, with the Google, Inc. (NASDAQ: GOOGL) Play Store and Apple, Inc. (NASDAQ: AAPL) AppStore clearly indicating the revenue dynamics of gaming apps and in-app purchasing.
The iron is indeed hot for CSRH to continue striking, as they recently did with the Bet Butler parent company, Bet Clearer, development contract, which is designed to have 359 roll out an app for their existing betting concierge service in Q4 this year for UK markets (with other markets soon to follow thereafter). A superb use of the 359 platform’s security features and the architecture’s ability to deliver content in a more efficient and economic fashion, the ported version of the Bet Clearer mobile solution will not only showcase further how CSRH’s technology leaps over mobile content admin, distribution and compliance issues across multiple devices, it expands the already tight-knit relationship between the two companies. Taken in light of the earlier partnership between 359 and live-action Keno systems/Keno-associated products giant, XpertX, Inc., producing a mobile results app for live Keno, the company obvious has a firm grasp on innovating in this market.
More info on Consorteum Holdings, Inc. at: www.consorteumholdings.com
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