in Mobile Gaming

#Mobile gaming: The winners of X-mas 2012

With a record number of iOS and Android devices flooding the market, analytics company Flurry estimated the percentage penetration per platform to estimate total market app downloads. The company also benchmarks download volumes tracked in its system against publicly released app download milestones from Apple and Google.

AppDownloads XmasDay 2012 resized 600 

The above chart shows that, compared to the baseline, app downloads more than doubled on Christmas.  Specifically, over the December 1 – 20 baseline, download volumes increased by 112% on Christmas. Despite the ever-growing installed base of existing smart devices, the influx of new devices on Christmas Day still helped deliver a record download day, besting that of any previous day in history.

So which companies have been the winners of the app-mania during Christmas 2012?

The majors like Electronic Arts, Gameloft etc have been very aggressive when it comes to discounts, securing them top spots in the top grossing charts which in turn usually leads to significant cross-selling volumes for the rest of their portfolio. In order to find out if they succeeded with that strategy, we have made a ranking check for several of the players in the mobile gaming market such as Electronic Arts, Gameloft, Game Insight, Rovio, Glu Mobile, Zynga and of course our top-pick G5 Entertainment.

Number of games among the top grossing charts for iOS:

(We are screening the app markets of Australia, Brazil, Canada, China, France, Germany, Italy, Japan, Netherlands, Russia, South Korea, Spain, Sweden, UK and USA)








The charts above show that the majors appear to have been the relative winners of the Christmas-season so far. Electronic Arts, Gameloft and Rovio show a clear upward trend in their top grossing positions in recent days.  Unsurprisingly, people fill their new devices first and foremost with well-known hits such as Angry Birds and FIFA 2013, especially when they are on sale and high up on the charts.

On a more negative note, Glu Mobile seems to have lost momentum which does not bode well for the near-term outlook for the beaten-down stock. We still believe Glu Mobile will benefit from the growing app market but would stay away from the share for the time being. There are simply better alternatives out there, not the least our top-pick G5 Entertainment, which showed a stable ranking development. For a small company in this fastly growing market, this has to be seen as a great success. Also, it is important to highlight that G5 Entertainment, together with Glu Mobile, is the only 100% pure play on the mobile gaming market that is publicly traded.

Our screenings should of course only be seen as a proxy of the overall development and do not include e.g. platforms like Kindle Fire and Nook.

Nordic Investor

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