June 1 2003

Wireless games will generate revenues of more than $7 billion by 2008, according to a new report from Strategy Analytics.

The Newton, Mass.-based research group said Thursday that downloadable Java and BREW games offer the greatest potential for growth. The emphasis on browser-based games and text games will fade as users become seduced by branded downloadable games that are available for their multimedia handsets, the report said.

Strategy Analytics advised wireless operators to leverage their billing assets in order to develop both retail and wholesale games download strategies, and maximize gaming returns.

"Carriers can capitalize on their pre-eminence within the service delivery chain if they develop flexible tariff approaches which smoothly pass significant proportions of revenue back to IP owners, games developers and publishers," said Nitesh Patel, a senior analyst with the firm. "In both of these respects, carriers' investment and choice of charging platforms will prove crucial determinants of success."

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