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a forum for the uses of videogames in advertising, politics, education, and other everyday activities, outside the sphere of entertainment
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Why the mobile carriers are slowing down the mobile game market June 7, 2004 - by Ian Bogost Anyone who has shared a room with me for more than five hours total has probably heard me complain about the wireless market. There's a lot to complain about, after all. Until February, I was an AT&T Wireless subscriber, a company whose sole purpose seemed focused on thwarting my wireless phone use. They cancelled my account (without my permission of course) twice within as many weeks. I think I spent over 8 hours that month waiting on hold to talk to their CSRs. Recently, I've become convinced that the single biggest obstacle in the way of a growing mobile game market is in fact the mobile carriers' inexplicable business practices. Here's why. Update: now Slashdotted. Welcome Slashdot readers. Back in February, I dumped AT&T, paid my $125 cancellation fee, and got a new account with T-Mobile. At the time, the best phone they had for my needs was the Nokia 6610. It's got a color screen and supports Java, but not Symbian. No Bluetooth and no camera either, but to get those I'd have to have chosen the ungainly Nokia 3650 or the SonyEricsson T610. I actually started out with the T610, but it has a number of problems, including a screen that's simply not viewable in daylight, poor reception, and frequent software crashes. So, the 6610 was the next best thing at the time. Recently, Tmo finally got the slick Nokia 6600 here in the States (yes, I realize how far behind we are). I really want to get one, but here is my conundrum. Because I am a new Tmo subscriber, they won't give me the $100 rebate that new subscribers get, which means I have to fork over $430 for this mobile phone. Amazon has it for a ridiculous $99 with new service activation. Just in case you're keeping score, that would make it cheaper for me to cancel my Tmo account, pay the $150 cancellation fee, and then sign up again. I understand that the carriers subsidize handset purchases as loss-leaders for service revenue. The problem is, I would have bought the 6600 when I got my service -- but I couldn't. So, now I feel like I was pushed into a corner. My wireless provider is treating me -- a paying customer -- with less interest than some joe on the street. Wireless must be the only industry that cares less about its existing customers than its nonexistent ones. So, why is this a problem for mobile gaming? Because mobile gaming is still undergoing significant growth at the technology base. I can't run Symbian apps on my 6610. I can't run Series 60 apps. I simply need a new phone if I want to get serious about mobile gaming -- and I have to get serious about it. But unless I want to pay $430 -- enough to pay for all three major game consoles, or almost enough for a new Dell PC -- I have to wait until next February, my anniversary date with Tmo, when they will again grant me a handset subsidy. The other day Tore Vesterby mentioned that 58% of mobile gamers are men. He wondered,
Does this indicate that gaming is a male dominated sphere and ring-tones are a female dominated (ed. or rather gender-neutral) sphere?
If mobile gaming is a male-dominated sphere, I wonder if it isn't partly because only us guys would be stupid enough to pay $430 for a new handset while the smart lady down the queue is paying $99. At the end of the day, I will buy the new handset. But I'll do so grudgingly, and I'll feel as though it's my carrier who cheated me -- the very folks who also want me to buy lots of OTA games and apps along with data service to go along with them. But I have to buy one. I need to make games on it. Imagine the "normal" consumer -- only the most dedicated gadgeteer or well-to-do will shell out these exorbitant prices for a handset. After all, their cable TV company doesn't tell them that they can upgrade to digital or HD, but "only once per year." What's the answer to this problem? It's simple, but I fear it will never happen. The handset manufacturers need to decouple themselves from the carriers. They need to realize that mobile customers are loyal to the hardware, not to the provider. We couldn't care less who carries the voice and data to our devices -- just that we get the best service in the right locations. It would be tantamount to having to buy your new LCD TV from the five models your local satellite company had cut a deal for. Face it, mobile carriers, you are slaves to the handset manufacturers. You guys have the worst business practices on the planet, and no one respects you. And handset manufacturers, get with it! Figure out who your customers are and find a way to market to us, maintain brand loyalty, and offer us ways to upgrade our devices that make that loyalty pay off, without crippling the carrier market. Comment from Tore on June 7, 2004
Lol, Ian. I feel for you. The situation here in Denmark is the same as in the States when it comes to carriers and cancelling subscriptions. It's a bloody jungle for consumers. The problem here is that the manufacturers are highly dependent on the carriers, who sell the majority of phones here. Just recently many of them decided to give Nokia the cold shoulder, and sales of Nokia phones have dropped 10%, irrc. So they are slaves on both sides of the pond it seems. The affordability issue for handsets when it comes to women is not that far fetched actually. At Digra 2003 Lucy Joyner talked about how the PS-One was being bought by a larger percentage of women in Japan after a redesign - they made the controller a bit smaller - and a significant drop in price. The Xbox on the other hand had a huge controller - not good for small hands - and was still fairly expensive at the time. Comment from R. on June 7, 2004
So basically the author is complaining that the carriers won't subsidise every phone that he purchases? They don't agree that his customer loyalty is worth spending $100s that they will probably never recoup? Damn them and their penny pinching ways! (Quite apart from the fact that if he's so 'serious' about mobile games he'd know that the Nokia Series 40 phones are the most popular and widely supported platform for mobile games... ;) Comment from Ian Bogost on June 7, 2004
R -- No, I'm not suggesting that the carrier subsidize every phone I purchase. I think I made it pretty clear that I'm willing to pay for the handset. I was trying to use myself as an example of how weirdly backwards the carriers make the logic of new handset purchases. I already have a Series 40 phone. I need a Series 60 phone too. But, thanks for reminding our readers that Series 60 is still new and needs more adoption. The problem is that the handset manufacturers pursue no relationship with their customers, while they have the strongest claim on them (much stronger than the carriers). The point I want to make is precisely that the manufacturers need to break their reliance on the carriers as their only sales channel (which is true, as Tore indicates. I'm not even suggesting a separation of retail, but rather a better attempt -- any attempt -- on the part of the manufacturers to build loyalty with their customers. Comment from UniqueCrash5 on June 7, 2004
My understanding is that things are different in Asia: there, handsets aren't subsidised at all. This means that handset manufacturers actually have to COMPETE. Unless all the carriers in the country decide to go this route (in this case the US but it applies elsewhere), you're going to continue to see what you're seein'. What really matters though is that the carriers deliver games that play well on the handsets they carry. Sure, it's cool that you want to always have the top-of-the-line model, but your case is the exception rather than the rule. Comment from Ian Bogost on June 7, 2004
What really matters though is that the carriers deliver games that play well on the handsets they carry. I agree with this statement. Someone else above reminded our readers that Series 40 is still more popular than Series 60. I was using my own (admittedly skewed) situation as an illustration; there are many more less geeky mobile users out there on older handsets who would be upgrading to a Series 40 device. But the carriers provide no incentive to upgrade (as I'm arguing here, they effectively discourage it), and the handset manufacturers aren't talking to their customers at all, because the carriers are in the way. Comment from civax on June 15, 2004
They need to realize that mobile customers are loyal to the hardware, not to the provider. We couldn't care less who carries the voice and data to our devices -- just that we get the best service in the right locations. Just wanted to note it is totallt different where I live, in Israel. Over here the device is only secondary to the operator. You choose from what the operator offers and that's it. Very uncommon to see people buyig devices not through a deal from thier carrier. Comment from Ian Bogost on June 15, 2004
civax -- that's pretty much how it works here in the US too. I just thiink it shouldn't work that way. As came out of a conversation I had the other day, maybe there was a time when the electric co. told you what toaster to buy, but surely we are over that by now? Carriers are utilities, plain and simple. Everything else is delusions of grandeur. Comment from Harp on June 24, 2004
You realise that your operator would lose a lot of money if it were to offer all it's clients $99 upgrades to a 6600. Phones cost a lot of money, and operators make them easier to buy, if you don't like the deal your operator is giving you, you always have the option of ordering a new sim free one off the internet. Comment from Ian Bogost on June 24, 2004
Harp -- the carriers subsidize handsets mostly for subscriber adoption. I was using the $99 upgrade not as an example of what should be done for everyone, but as an example of how the carriers choose not to support their existing customers. Instead, they're focused on new subs. And the handset manufacturers don't have direct access to the customers they and the carriers share. Which makes it very hard to incent people to do much of anything. The $99 upgrade is a pretty extreme example, so of course it couldn't be extended across the board. However, one could argue that the value proposition for a $430 phone is dramatically undermined simply by the existence of a $99 version. Many people don't understand the subsidy process... and should they have to? Comment from Sally on July 1, 2004
Handset turnover is much higher in Asia-Pacific mobile markets then it is here. I agree that getting the newer phones in the consumers hands would be good for mobile gaming. Some operators do understand this and have handset trade-in programs. For example, CSL in Hong Kong posts this trade-in price list: It makes sense that operators can continue to lure new subscribers with handset subsidies and then keep them happy with trade-in programs. Comment from Ian Bogost on July 5, 2004
It makes sense that operators can continue to lure new subscribers with handset subsidies and then keep them happy with trade-in programs. I agree with this. However, I'd point out that the carriers also haven't gotten service plan trade-ups working well. Unless you call your provider frequently to find out what new programs you can get into in exchange for a contract renewal, you'd probably never know. And then the programs expire in a matter of days. I still think the best medicine for mobile apps in general and mobile games in particular would come from handset manufacturers marketing directly to their consumers. Comment from Richy on July 9, 2004
I always find that the operators are a complete rip-off. So much so that I set up a business with my mates for mobile games and we can bring them to everyone at a much smaller price and have the content on there much more quickly. We have now got the largest selection of mobile games anywhere - so if we can do it why do the networks with their billions take so long!!! Cheers. Comment from Online Poker on February 16, 2005
Comment from rose on August 19, 2006
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Comment from roselinecellcomm on August 19, 2006
we selling all kind of mobile phones for sale.we have all kind of Brand? New nokia, Brand new sony ericsson, samsung, motorola,nextel,qtek, We give 1 year warranty for every phone sold out to our costumers, our phones are Contact Miss Roseline Linda Email:roselinecellcomm@hotmail.com PRICE LIST BELOW!!!!!!!!!!!!!!!! SAMSUNGS PHONES ? Samsung d500 110usd NOKIAS PHONES?
MOTOROLA PHONES? Motorola a388c 130usd NEXTELS PHONE? Nextel 6510TM-- US$110 PDA's PHONES? HP IPaq Pocket PC H4150 ========= $140 GAMES!!!!!!!!!!!!! play station 1......... $120 APPLE IPODS Apple 20 GB iPod .........................45 USD SIDEKICK Protop 2 Piece Hardtop for Sidekick / Tracker ...........$100 usd Email:roselinecellcomm@hotmail.com THANKS REGARD
Comment from Vitorcc on October 27, 2006
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