Mobile profits? Operators are just playing games...

With 2.5 and 3G finally starting to get a foothold in the major mobile markets and the Nokia N-Gage leaving shops at a more than respectable pace, mobile gaming will be the next major cash cow for mobile operators.

The figure of just how much mobile gaming could be worth is €3bn by 2008, according to analyst group Analysys – a dramatic rise on the €2m that mobile operators will pull in from games this year.

The reason for the sudden jump in game revenue is a result of the industry ironing out the bugs that have hampered take-up to date, as well as an increased appetite on the part of consumers.

The report notes that among the gremlins that the mobile industry has managed to iron out are adopting better standards for interoperability, getting consumers to start using MMS. Analysys believes that given that some of the major operators across Europe have rolled out mobile video content, the future of the market is looking healthy – with gaming set to make up a fifth of all mobile entertainment revenue within the next five years.

Rachael Beale, the report's lead author, said in a statement: "Java handsets have become more widely available over the last 18 months, and mass-market interest in mobile gaming has grown strongly as a result. Users are swapping Snake for arcade simulations and film tie-ins, and the release of new devices optimised for gaming, like Nokia's N-Gage, is likely to encourage take-up further."