Gameloft posts increased revenues, rosy outlook for mobile gaming

Gameloft offered a surprisingly upbeat outlook for mobile gaming as it posted $34.1 million in third-quarter revenues.
The Paris-based game maker reported an 8% increase from last year’s revenues during the same period, and generated $99.6 million during the first nine months of 2008 – up 9% from the previous year. Mobile games accounted for 98% of third-quarter sales, the company said, with the balance of revenues coming from titles for home gaming consoles.
But while the figures may not have been staggering – Gameloft said sales were “in line with the company’s expectations” – the company painted an exceptionally rosy portrait of a space that has struggled to gain mass-market traction. The iPhone and other high-end devices are already helping to buoy the space, Gameloft hinted, and distribution channels such as Apple Inc.’s App Store are changing the way publishers get their wares into the hands of customers.
This year “is a turning point in the mobile gaming industry,” the company said in a prepared statement. “The major innovations introduced by companies such as Apple, Nokia and Google have radically transformed and improved the gaming experience, consumption behaviors, as well as the industry’s business model. In addition to these innovations in the mobile gaming industry, the entire video game industry will have moved towards digital distribution by the end of 2009.”
That enthusiasm echoed the sentiments of other publishers that see the new wave of devices as way to attract mainstream users. Investors were less optimistic, however, as shares of Gameloft fell 2 cents to $2.67 on the Paris Stock Exchange.