Issue link: http://digital.copcomm.com/i/8034
more than a decade, wait- ing for graphics accelera- tion, memory, and power management to advance to the point where gam- ing made sense on a handset. Now, most mobile Unity Technologies’ game engine is just one of many integrated authoring tools for creating 3D video games and other interactive con- tent, such as architectural visualizations or real-time 3D animations. in PC technology will leave game consoles be- hind, and gamers will begin to demand that faster, better machine. T e economy will get better, as well. For the game middleware mak- ers that have invested wisely and are spending the hard times developing new technology, there will be pent-up demand that will result in new seats and subscriptions when gamers start buying titles en mass again. Spending on game middleware for console and PC titles will increase at a compound annual growth rate of 12.4 percent, from $413 million at the end of 2009 to $740 million at the end of 2014. Mobile T e mobile industry was one bright spot in the overall economic picture throughout 2009. In particular, the smart phone segment outpaced most expectations driven by the iPhone. According to Gartner research com- pany, third-quarter sales of smart phones were up 12 percent in a global economy that was still struggling. Middleware makers have been keeping tabs on the mobile game segment for $100 $200 $300 $400 $500 $600 $700 $800 $0 (millions) 38 March 2010 $1000 handsets are more than capable of handling base 2D games, and a signifi - cant portion of handsets are now ready to take on 3D gaming, such as that being enabled by Unity’s iPhone middleware. Mobile entertainment middleware as a business is relatively young. Many companies and technologies have been around for less than a decade. T is means that the in- dustry is still in the early stages of developing successful business models. Experimentation with models ranges from hosting and portal services where technology providers take a piece of each transaction, to stand-alone, off - the-shelf game engines at a per-game price. Middleware makers looking at the mobile mid- dleware market from the game or ITV industry have to be prepared for a completely diff erent market. Development budgets in the mobile game industry are a fraction of what they are in the PC or game console industry. Selling a solution that is hundreds of thousands of dol- lars will not fl y in this segment, so middleware providers must be innovative in developing a large community of users and selling product at a very low price point relative to what can be charged in the console and PC game develop- ment industry. Middleware makers in this segment must $100 $200 $300 $400 $500 $600 $700 $800 $0 (millions) also compete with a very helpful mobile tech- nology industry. Handset manufacturers and Spending on Middleware for Video Game Consoles & PCs 2009-2014 $50 $100 $150 $200 $250 $300 $0 (millions) Source: Acacia Research Group Spending on Middleware for Interactive Television 2009-2014 chip makers, such as Nokia and Qualcomm, among others, provide development technol- ogy for free. T e point is to encourage the development of applications and content for Nokia and Qualcomm technology. Middle- ware makers have to provide solutions that de- velopers cannot get through Nokia’s developer network, Qualcomm’s BREW, or Sun’s Java suite of products. T e key to competing suc- cessfully with these mobile technology giants is that these providers are not in the entertain- ment business and oftentimes the solutions they provide are not necessarily optimized for entertainment. Voice technology is the bread and butter of the mobile industry. T ese free solutions do not always take into consider- ation issues that are important to gamers, such as controllers, latency, and plain fun—areas where game technology providers can diff er- entiate themselves. As game developers and other content pro- Spending on Middleware for Video Game Consoles & PCs 2009-2014 viders look for cheaper ways to develop games, mobile content will continue to look attrac- tive. When confronted with spending millions of dollars on the next console game, compared to hundreds of thousands of dollars on the next mobile game, many will opt for mobile. T e iPhone represented the tipping point for mobile entertainment, but it is just the tip of the iceberg: with Android fi nally providing true competition, mobile entertainment will explode. T is will push spending on middle- ware for mobile entertainment to a compound annual growth rate of 10.6 percent, from ap- proximately $178 million at the end of 2009 to $294 million at the end of 2014. ITV Digital set-top boxes for interactive television have fi nally become powerful enough that true interactive applications are now being devel- oped for many pay television services. Enter- tainment applications, from karaoke to casual Spending on Middleware for Mobile Devices 2009-2014 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014