The document discusses challenges facing next generation mobile gaming platforms. It notes that while smartphones drove significant growth in downloaded mobile games from 2007 to 2008, larger publishers now face issues making money from games at typical price points like 99 cents. Specifically, the document identifies potential problems with an overabundance of low quality titles overwhelming consumers, pricing pressures keeping prices too low for publishers to profit, and the need for platform providers to focus on supporting the publisher ecosystem through features like more sustainable pricing models.

1. next gen platforms: mirage or paradise? greg ballard president & ceo

2. source: comScore m:metrics, january 2009 downloaded mobile game by platform: audience three-month average ending nov. ‘07 vs. nov. ‘08 u.s. mobile phone users (000s) nov. ‘07 nov. ‘08 y-o-y growth smartphones non-smartphones total 734 6,486 7,220 2,869 5,593 8,463 291% -14% 17% smartphones drive mobile games adoption

3. emerging battlefield of mobile content oem’s carriers digital media companies

4. Top US Games Publishers

5. App Store Market Share – Q209 glu mobile - company confidential

6. Quality Has Been Tied to Quantity 1,500 100 200 1,092 * 30,000 Source: WGR’S Wireless Content Tracking Service