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July 19, 2009 8:18 PM PDT

Mobile Internet: Final frontier for game vendors

by Dave Rosenberg
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Mobile services continue to mature, and the things you can do on a phone keep getting better even when we are forced to suffer with inconsistent and occasionally terrible quality from mobile carriers.

The vast majority of new services we see in the U.S. have some basis in the DoCoMo i-Mode service from NTT Japan. If you're looking for mobile opportunities, take a gander at Japan and Korea to see how mobile devices shape lives and society.

I spoke with Gerhard Fasol, head of Eurotechnology Japan about a recent report discussing Nintendo and Japan's gaming industry are effected by new devices like the iPhone and services like the App Store, as well as how Japanese electronics manufacturers are trying to make their console/device the center of user's lives.

Since DoCoMo's i-Mode started mobile phone games in 1999, "online and mobile phone games combined have outgrown the video game software sector and are certain to grow much more in coming years. The iPhone, for example, is not slowing mobile phone based gaming down...those who only count video game cassettes and consoles, certainly don't see the rapid mobile and online growth--and complain about shrinking markets."

But really what vendors are feeling is their shrinking control--game vendors and carriers have pushed their own walled gardens, which works fine as long as they can provide what people want--and sooner or later then can't. Think AOL versus the Internet if you need more explanation.

According to Fasol, games of all kinds used to be played in game parlors, and some of Japan's game giants were originally (and still are) game parlor machine makers (a round of Dance-Dance-Revolution anyone?)

These game vendors then moved on to consoles, cassettes and handhelds, taking the momentum out of game parlors, and establishing a pattern of growth by generations (today we are in the 7th generation).

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About Software, Interrupted

In "Software, Interrupted," Dave Rosenberg discusses disruption in the software market, as well as the products and services that keep business technology norms in perpetual flux.

With nearly 15 years of technology and marketing experience spanning from Bell Labs to multiple start-up IPOs, Dave co-founded open-source software company MuleSource and now serves as general manager of Hardy Way. He also happens to be a U.S. patent holder and a workaholic. Technology is his best friend and mortal enemy.

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