The increasingly competitive mobile games market is in a consolidation mode due to high operating costs, according to a Digital Chocolate exec.
“The sector is in a heavy consolidation mode,” Ilkka Paananen, head of European operations at Digital Chocolate, told Reuters in an interview…The growing number of handset models and an increased need to provide marketing support for the products have pushed companies into mergers, Paananen said.”
Producing a mobile game is relatively cheap, and although porting can be expensive a lot of game companies have learned how to deal with that. The big issue appears to be marketing — if a companies game is high on the carriers deck its fine, if its not a great deal of effort needs to be spent to bring it to the publics attention. Even if it does get high placement, that’s often because the publishers are willing to do their own promotions.
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