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Economy Takes a Bite out of Entertainment Middleware in 2009
Acacia expects spending to rebound in late 2010, growing at a compound annual growth rate of 9.3% over the next five years to reach $2 billion annually by 2014
Vancouver, WA - December 1, 2009 - Spending on entertainment middleware was one of the few bright spots in the world economy during the first half of the year, but game middleware took a big hit in late 2009. The segment will recover quickly by late 2010, with compound annual growth of 12.4% over the next five years taking spending to $740 million by 2014, according to the latest market study on interactive entertainment middleware from Acacia Research Group. Mobile middleware will grow at an average of 10.6% annually between 2009 and 2014 to reach $294 million; spending on interactive television middleware will expand at 6.9% annually over that same period to $980 million.
“The first half of 2009 looked strong for many third-party game middleware vendors as game developers turned to outside sources as a way of saving money,” said Christine Arrington, Senior Analyst at Acacia Research Group. “Unfortunately, in the second half of the year, project cancelations, delays, and-cost cutting brought that growth to a halt.”
Many game developers are turning to casual and mobile game development, leaving console and PC middleware providers to look towards 2010 with hopes the game pipeline will fill quickly and revive demand for their products.
Throughout late 2008 and into 2009, ITV middleware providers were still reaping the benefits of pay television operators transitioning their infrastructure to digital services. This trend slowed in the last half of 2009 as pay television subscription growth rates fell.
Mobile middleware spending is growing quickly as game developers look at mobile platforms as a cheap development alternative to console and PC games. Multimedia on handsets, the proliferation of app stores, and support from device manufacturers and network operators will push mobile developers to create more complex applications. This support will drive growth in mobile middleware spending.
About Middleware for Interactive Entertainment 2009
This study, now in its fifth edition, addresses three very distinct markets for middleware products used to create interactive entertainment applications. This comprehensive market study covers game platform middleware, mobile middleware, and interactive television middleware.
Included in this study are five-year forecasts for game, physics, network, and artificial intelligence engines, plus the market for third-party game middleware solutions versus in-house spending by publishers and developers on their own proprietary solutions. Forecasts for mobile middleware are provided for 2D vs, 3D solutions, and in-house vs. third-party. Interactive television forecasts include standards-based vs. proprietary, and by pay television distribution method.
Also included in the study are five-year forecasts of device shipments and installed base, information on game development trends including number of games developed and launched each year, development budget forecasts, revenue from mobile games, and more. This edition also incorporates data from Acacia’s Tools and Middleware Titles Database, which tracks game titles and the tools and middleware used to create them.
This market study (95 pages, with 30 charts and 17 tables) is priced at $2,750 for electronic (PDF) and print (single copy). Site licenses are available for $4,125 and include three printed copies, intranet posting privileges, and unlimited internal distribution. The study is available for purchase via the Acacia web site. The game platform, mobile, and interactive television segments are available for separate purchase if desired.
Middleware for Interactive Entertainment 2009 is available via the company’s web site at www.acaciarg.com. Journalists working on related stories may contact Christine Arrington for quotes, additional data points, and charts and tables.
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