With sales of console and handheld systems having stalled, the attention of the video game industry has turned to the fast-growing cell phone video game market. Apple’s iOS and Google’s Android have taken about 8% of the overall video game market. And, when it comes to portable games, Apple and Google now have about 34% of the the market revenue according to an analysis by Flurry.

What a change from just a few years ago when Nintendo, Sony and Microsoft ruled the gaming landscape, and for the first time, sales of smartphone and tablet games have grown to $800 million, exceeding the estimated $700 million in revenue from PC games sold at retail. Flurry said a year ago that the iPhone and iPod Touch garnered about 5% of the U.S. video game market from 2008 to 2009. Now, with the rapid expansion of both the iOS (iPad, iPhone and iPod Touch) and Google Android devices, the market has shifted even more.
Earlier this year in February, the 2011 Mobile World Congress in Barcelona, Spain, gathered 60,000 professionals from 200 countries and served as the official “coming-out” party for the next generation of Google Android smartphones and tablets. Android featured a huge arcade section where developers from around the world showcased the next generation of mobile games. AndroidHD, an Android news and reviews site in France, created a video of 50 great games on Android. Today, at Google I/O, the Android team shared some stunning growth news including the fact that there are now 100 million activated Android devices.
In 2011, expect to see continued smartphone and tablet growth, fueled primarily by the launch of the iPad 2, the launch of the iPhone on the Verizon network, and the future hardware releases on both Android and Apple platforms. The enablement of in-app purchases on Android, a change which fueled growth on Apple, will also be a big deal, in addition to the expected launch of the iPhone 5.
So, if your image of a video gamer is a 20-something unbathed male chugging Red Bull all night, try again. Women account for 53% of the worldwide mobile social gaming market. Mobile social gaming is changing the video game market in a huge way. And, thanks to the iPhone and iPad, Apple is now one of the world’s biggest video game companies with sales that could reach $1.6 billion this year. Yet, with over 200,000 free and paid applications available in the Android market, who will win the sales war is still up in the air. Moving forward, more and more consumers will demand one device for everything, including gaming, multimedia, entertainment and Web browsing.
















