Mobile gaming, although growing, is locked into a model with an increasingly limited upside. Last year, mobile gaming in the
United States generated $453 million in subscription and transactional revenue, up from $321 million in 2005. However, this
growth is a result of overall subscriber growth—not a greater percentage of mobile users downloading games. According to the
Yankee Group 2006 US Portable/Mobile Entertainment Survey, in the United States, 68.5 million mobile users reported playing
mobile games. Of these, 11% downloaded additional games to their phone. This is the same percentage of
mobile users who downloaded additional games in 2004.