Virtual purchases: Three years ago the market research firm Parks Associates estimated that by 2015 nearly $6 billion would be spent worldwide on virtual purchases, microtransactions that help players move up the ranks more quickly in a game or, say, craft a personalized avatar. “Gamers are investing real money in virtual items in FarmVille, World of Warcraft and other online games, to the point they are filing lawsuits to establish ‘ownership’ of these virtual goods,” said Pietro Macchiarella, a research analyst at the firm. In order to enable in-game virtual purchases in real time, CSPs must have an agile billing system, which is why direct-to-carrier billing is an avenue that merits further exploration.

Developer partnerships: Leading console-game developers are seeking to maintain brand integrity as they migrate to mobile. Therefore, successfully delivering the mobile component for a large-scale content developer will be another area of growth for CSPs. Telefónica Digital partnered with Electronic Arts, or EA, to this end in 2012. “Our relationship with EA Mobile puts us at the epicenter of mobile gaming, which accounts for the highest percentage of downloaded apps and is the largest paid-mobile-content market today,” said Matthew Key, Telefónica Digital’s CEO. “By making a differentiated play in this most emotive and immersive entertainment medium, we are fostering a much deeper connection with our customers, another significant step in becoming a true aggregator of experiences.” 

In-game advertising: CSPs have the ability to deliver personalized and local ads to their subscribers in a way that over-the-top (OTT) players do not. Location, profile and presence can be utilized for highly relevant in-game advertising, which already subsidizes many mobile games, but generally it’s not well targeted and dilutes ad revenue over time. If a CSP were to partner up for an in-game advertising relationship, both it and the game’s developer would stand to benefit from a more tailored experience.

The leader board: innovators with high scores

Several CSPs around the world are racking up high scores in mobile gaming. The aforementioned Deutsche Telekom and Telefónica lead the pack in Europe, Verizon and T-Mobile are currently the best positioned to do so in the US, and in the Asia-Pacific region NTT Docomo and SK Telecom are the mobile providers to watch. Last but certainly not least, quasi-service provider Microsoft has a huge stake in the mobile gaming realm: it’s enjoyed great success with its Xbox Live platform, and as it moves deeper into mobile with Windows 8, it’s the only console manufacturer to have a branded, seamless experience that extends to mobile devices, home entertainment systems and PCs. Additional integration with Skype and other communications applications for in-game communication  further strengthens Microsoft’s already firm foothold.

Winning the game

A recent study conducted by NPD Group indicates that mobile players account for 22 percent of the total US gaming market, more than any other customer segment. As mobile gameplay skyrockets, console-game sales continue to slide; as a result, the gaming industry and investment community are focused squarely on mobile. Likewise, the telecommunications industry must focus on the opportunities presented by these market developments and build the capabilities of their networks accordingly. After all, getting into gaming isn’t about blowing dust off a Nintendo cartridge or dropping a quarter in a pinball machine — it’s about enabling entirely new experiences and becoming the trusted provider of new digital lifestyles.