Cell Phone Gaming Revenue Declines

Worldwide mobile phone gaming revenue slid 9 percent during the three months ended in June, sparking concern about slowing demand in the category, research firm iSuppli said Wednesday in a Reuters report.

Analyst David Carnevale of iSuppli said the quarterly decline, which was caused by weak subscriptions for games — an idea we’ve never been thrilled with, as a one-time purchase that you own forever is preferable for most consumers — was “a significant blow” to momentum the category has had in recent quarters. “We’re going to see if it’s seasonality or if the games aren’t compelling enough,” he said in the Reuters interview.

In his research report, Carnevale said that while the third quarter performance and the fourth quarter outlook appear optimistic, “the pace of growth is slowing, causing great concern to content providers.”

Mobile Gaming Revenue Seen Down [Reuters via NYT]