It was one of the worst-kept secrets in the gaming industry -- when was Motley Fool Stock Advisor pick Electronic Arts
Well, the "when" turned out to be yesterday, and the target ended up being the most likely candidate -- Jamdat Mobile
The announcement by the companies now sets the stage for the next series of moves in the industry. Will another player -- maybe THQ
Or will some of the other notable mobile gaming players start to see more interest? That's a certainty. There are many other mobile gaming developers and publishers, such as Mforma, Digital Chocolate, and Glu Mobile, which could compliment PC and console-based gaming companies.
The announcement of EA and Jamdat's combination has marked the official beginning of the mobile gaming era. With the wireless gaming market now hitting $1 billion annually and growing rapidly, gaming on cellular phones is starting to shape up as a more significant opportunity. Even though Jamdat's revenues would only comprise roughly 2% of Electronic Arts' top line, it's about 10 times what EA earns now for its own wireless games.
Acquiring Jamdat ensures EA will stay well ahead of competitors as wireless gaming becomes a bigger part of the total entertainment market.
For more Foolishness on Electronic Arts, see the following:
- Electronic Arts sees Asia in the cards.
- A Bull Fool and Bear Fool duel over EA.
- EA is on the fast track.
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Fool contributor Dave Mock still plays the original Donkey Kong. He owns no shares of companies mentioned in this article.