Even though mobile analytics firms such as Flurry have been finding the handheld gaming device market has had chunks taken out of it by smartphone and tablet-based gaming, there are still positive times ahead for Sony and Nintendo, according to a new study from International Data Corporation (IDC).
Specifically IDC sees the handheld market's overall revenue rising by 20 percent in 2012, calling it a 'rebound year for dedicated handheld.'
Big in Japan
"Especially given the 3DS price drop in mid-2011 and in light of respectable initial demand for Vita in Japan this past December, it appears that 2012 is shaping up to be a rebound year for dedicated handhelds," says Lewis Ward, IDC's research manager for gaming.
"It's absolutely true that a mind-boggling number of games have been downloaded to iOS and Android-powered devices in the past year, but only a fraction of those games were paid for and most of those were of the $1 to $3 variety.
"An interesting piece of this story is what's happening demographically," he added.
"The penetration rate of paying gamers is much higher in the child and teen segment for dedicated handhelds than it is for cell phone or media tablet gamers.
"As long as dedicated handheld OEMs and physical format portable game developers/publishers can hold serve in the demographic niches where they currently have a substantial advantage, I expect their revenue opportunities moving forward to remain substantial."
Years ahead
IDC projects that overall global revenue for dedicated handheld, cell phone, media tablet video game software will rise from $14.7 billion in 2012 to just over $20 billion in 2015.
"Mobile and portable gaming is clearly a positive industry growth area," Ward said.
"Since weak macroeconomic conditions are likely to prevail in many key advanced industrial nations over the next few years, much of this growth will likely occur in BRIC nations and a handful of other emerging economies, and be more casual/social cell phone gaming oriented."
[source: IDC]
Data & Research
When Matt was 7 years old he didn't write to Santa like the other little boys and girls. He wrote to Mario. When the rotund plumber replied, Matt's dedication to a life of gaming was established. Like an otaku David Carradine, he wandered the planet until becoming a writer at Pocket Gamer.
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