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 The report, entitled "Making Mobile Gaming Pay," says that there are 5 million mobile game users in Europe currently, but this figure will grow to 130 million by 2005.
Moreover adoption of mobile gaming will begin with SMS-based games, as Europe's 11 million SMS gamers will expand to become an audience of 70 million by 2005. Most of these players will be young, the report says, with 44 percent of current mobile handset users under 35 and a massive 84 percent of the same age group making up Europe's SMS users.
However, after 2002 older gamers will jump into the mix as classic 1970's and 1980's mobile games are introduced, such as Pong, Frogger and Space Invaders.
Yet there are serious obstacles to overcome, Forrester says. The number one problem currently is that mobile handsets don't offer a decent experience. But would-be gamers need not worry because Ericsson has already introduced its T68 in Europe, a phone with a colour screen and navigation stick, and similar models are due to roll off the production lines from Nokia and Siemens later this year.
Moreover the rollout of high-speed networks, including GPRS, should have a significant impact on mobile games. "The increase in wireless bandwidth and better phones will attract more firms to offer mobile games. Just as an increase in Internet-ready PCs pushed more companies to offer Web services, a bigger audience for mobile games will make firms like Eidos Interactive and Electronic Arts follow in the footsteps of Riot Entertainment and Picofun," the report said.
"Operators must curb their greed," the report proclaims, saying that in order for developers to continue to produce playable games, mobile operators need to share revenues with them. Also marketers will be willing to help pay for development of new games, if the developers are willing to incorporate branding and sponsorship into their games.
Concluding, Forrester says that over the next five years, ad agencies will begin acquiring their own game development organisations that will develop games as tools for advertising and marketing. Television and film studios will be among the first to promote their products via mobile games, with current examples already on the market, such as "Who Wants to be a Millionaire?" and "The Weakest Link."
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