Some people in the video game industry predict the mobile games business could eventually grow to topple the handheld gaming market, Wedbush Morgan disagrees. In its July industry report, analyst Michael Pachter estimates the mobile games industry is currently closer to $2 billion and, even with expected growth, the market may only expand to $4-6 billion in the next three to five years.

In a section titled "Mobile Phone Games are a Fad," Pachter explains that, while 1 billion iPhone applications have been downloaded across 31 million Apple products sold, "it is not evident that more than 20% of these downloads are games." Suggesting the iTunes App Store has generated "under $400 million in game downloads" in its first year. Pachter does predict the mobile game industry will grow at 25% per year for a few years, but will eventually fall as competing devices enter the market.

The report also calls Electronic Arts' emphasis on mobile games "misplaced." EA Mobile has grown steadily over the last few years, but the report estimates the mobile games division is -- along with that of competitors Gameloft and GLU Mobile -- "barely profitable."

According to the report, finger pointing in Apple's camp should directed toward the "open forum" structure of the store and Apple's business model. Apple runs the game download service for an estimated 30% fee, leaving 70% to the game's publisher, the report claims. The section on mobile games goes on to conclude that handheld systems, like the new PSP Go, will "maintain its niche, without significant cannibalization" from the mobile games industry.

Weighed against the more than 50,000 other apps in the App Store, Gameloft's 40 iPhone games might seem minuscule, but there's no doubt the mobile publisher has taken a prolific approach to striking gold in the mad rush to mine Apple's virtual territory. Putting top spin on his words, Gameloft CEO Michel Guillemot insists to Pocket Gamer, "We're not in the volume business. We're in the experience business." And my, what variety of experience there is!

Gameloft has ported every manner of popular genre into an iPhone game and, despite mixed results, has managed to maintain a presence in both the top 100 paid games and paid (overall) apps lists -- with two bargain-bin sales currently in effect, Gameloft has four games among the top 100 paid apps right now. Key to this success, Guillemot claims, is staggering releases: "You can't take care of your titles when you're releasing them shotgun." So, do we just ignore that DJ Mix Tour, Real Tennis 2009 and Rise of Lost Empires were all released on June 3? Clearly, Gameloft is in the volume business, and it's working. But what are the drawbacks?

Guillemot suggests that the speedy Terminator Salvation: The official game price slash (from $9.99 to $4.99) is an example of Gameloft quickly responding to "consumer expectations," as if it is some breakthrough in seller-buyer relations. That's a crafty way of covering up the fact that Gameloft wasn't taking care and, in turn, diluted the market and damaged the integrity of iPhone games that might be worth $9.99. A more lasting effect could be the discouraging of developers that would have otherwise set out to create content worth that ceiling price, but instead turn to those half-baked, $0.99 efforts that are piling up -- almost literally -- a dime a dozen. But hey, at least there's no shortage of experience.

Battle Tanks, coming to the PlayStation Network from mobile developer Gameloft this July, feels very familiar. At its heart, the game's a two-stick shooter with a few interesting mechanics to help differentiate it from the crowd (bullets ricochet off of walls and power-ups break up the monotony). Which isn't to say what we played of the the game was bad -- it felt like digital distribution's equivalent of a rental-worthy game -- which is quite the dilemma, considering the PSN-based distribution of the title.

Commanding a World War 2-era tank, we piloted ourselves around a handful of different square maps, where a variety of enemy tanks and power-ups laid in our path. The layout of each level's semi-destructible environments helped to dictate our tactics while we dominated Destructoid's Ben Perlee -- er, rather, while he blew himself up, given that ricocheting bullets (even your own) can mean game over. While we weren't exactly jonesin' for more once the demo had ended, Battle Tanks' detailed environments and combination shooter/puzzle gameplay could very easily help us while away an empty Saturday. Too bad we can't rent it.

Fear not North America and Europe, for it appears that Sexy Poker will make it to our virtual shores through WiiWare. The Germans rated the title last month and there's also a listing on the ESRB site. According to the ESRB's content description, the game not only titillates with visuals, but with "provocative comments" like, "I'll always know what's in your hand." What, the Wiimote? Let us waggle it for you, Sexy Poker lady.

[Via GamePolitics]

Another strange week for DSiWare arrives, as Photo Clock appears on the store, doing little more than charging two dollars for limited functionality additions to the DSi. If you were looking for a good alarm for the DSi, this could be your week! Thankfully, American Popstar: Road to Celebrity is picking up the slack and ... wait, American Popstar? What?! Forget it, DSi! We're sticking with the Wii and snagging the remake of an 8-bit classic in Adventure Island: The Beginning instead. As always, jump past the break for all the messy details.

The last time Germany's USK ratings board hinted at a new Gameloft-developed PSN game, it proved to be completely accurate. So, there's a good chance that Gameloft's recently discovered Battle Tanks for PSN is totally legit, too.

So far, all we know about Battle Tanks is that it's for PS3 and it's a downloadable strategy game, given its "arcade" and "skill" classifications. Oh, and lastly, it will most likely feature battles and tanks to some degree. Call it a hunch.

[Via GamerBytes]

It's quite the coincidence that after challenging our brains week after week about how the Xbox "Deal of the Week" is determined, Brain Challenge ends up becoming this week's offering. The glorified mobile app isn't "bad," but we still have to think real hard if it's worth the 400 ($5) price -- at its standard 800 ($10) price, we feel a purchase would put us in the same category as Abby Normal's cerebral matter.

If you're in the market for some cranial exercise, this would be the week to get the Brain Age clone. Just be prepared to learn that a purchase is unlikely to make you any smarter.

[Add Brain Challenge to your Xbox 360 download queue]

This week, the various downloads across Nintendo platforms form quite the eclectic mix, though the quantity of what's available is sure to upset some. If you're looking for more than one title to download on each platform, then we're afraid you're out of luck.

Gameloft, one of the world's leading mobile game producers, has struck an agreement with Sega Europe to produce mobile content based on Sega properties. The first game that will come from this new partnership will be a mobile version of Sonic Unleashed, which will feature "high-speed 2D side-scrolling action." Sadly, it will also feature The Werehog.

There's no word on what other titles Gameloft will produce for the mobile space, but European cellphone enthusiasts (if there are such things) can find Sonic Unleashed on their mobile phones sometime in June.

Considering Nintendo's family-friendly image, we'd say it's highly unlikely that this title will ever see the light of day in North America. We're almost positive the company doesn't condone that kind of thing. You know, gambling.

Gameloft announced today that sales were up 22 percent year-over-year for its first quarter and the mobile publisher took in $40.2 million in sales. Mobile games represented 94 percent of the haul, with North America increasing sales 57 percent over last year -- Gameloft should send Apple a gift basket of thanks for the iPhone.

Gameloft already has plans to jauntily expand more into the console space, but the company knows where its bread is slathered with butter, as evidenced by alleged talks with Microsoft to develop titles for Windows Mobile. Overall, the publisher plans to grow its revenues and be even more profitable in 2009. What recession?

Gameloft's mobile racing games Asphalt: Urban GT and Asphalt 2 were both released as retail DS cartridges back in 2004 and 2006, respectively. The fourth game in the series, Asphalt 4: Elite Racing, appears to be releasing as a downloadable game like its cell phone counterpart, thanks to the advent of DSiWare.

The ESRB has added a rating for Asphalt 4 for DSi. It'll join Gameloft's lineup of DSi games including Real Football 2009, American Popstar, and Uno. Whether you like the Asphalt games or not, we doubt anyone can deny it's better to buy them from home and pay less for them.

Although we were subjected to the "bait and switch" Gameloft pulled at GDC, IGN more recently managed to get some details about the upcoming Assassin's Creed iPhone game. The title is based on Altair's Chronicles, the Nintendo DS prequel to the main game, where the white-robed killer's guild covets "The Chalice."

IGN speculates the game will cost between $6-$10, making its presumed three-hour length a little easier to digest than that of the $30 DS title. Check out some screens below to see what the game will look like on your iPhone or iPod Touch.

In an attempt to become more relevant less irrelevant in the mobile space, Microsoft is looking to hook up with EA and Gameloft to create content for the upcoming Windows Marketplace. Edge reports the company is also discussing partnerships with Facebook and internet radio provider, Pandora.

Microsoft has kept rather tight-lipped about its plans for gaming on Windows Mobile, but Robbie Bach, head of MS's entertainment and devices division (i.e. Xbox), is set to keynote at CTIA Wireless Conference in Vegas tomorrow. Considering it was almost impossible to get away from iPhone talk during GDC this year, it'll be interesting to see if Microsoft can capitalize on the current excitement in the mobile space for its platform.