In an article from Reuters, we discover that the European mobile phone games market is coping with its first slow-down as telecoms carriers shift advertising spending to mobile television or digital music, and operators struggle to win new devotees.
The $US418 million ($A553 million) European market is still growing but the pace is slackening with some analysts blaming the slowdown on the difficulties of reaching a wider audience.
Operators are also increasing the pressure on games makers by cutting the number of publishers they deal with and asking for greater participation in marketing costs - both moves which are pushing smaller players out of business.
An increasing number of handset models and rising costs are also pushing many games publishers to merge.
Informa researchers forecast a rise of 53 per cent in market size in 2006 - a healthy increase for many sectors but a slowdown in this early-phase industry which more than doubled annually in 2004 and 2005.
Most industry executives are more cautious than Informa, with the most ambitious putting growth forecasts at 50 per cent.
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