FADE research

FOR IMMEDIATE RELEASE

May 6th, 2010 - As per the released report by Forecasting and Analyzing Digital Entertainment, LLC (FADE), the Android marketplace grew by 60% in March when compared to February of 2010. FADE LLC estimates that the Android market in 2010 is already within just 10% of matching 2009's entire yearly revenue.

Gaming revenue in March reached an estimated $798,000 - a new record for the market, beating February's record of an estimated $500,000. 1st Quarter results yielded an estimated $1.7 million. By comparison, the whole of 2009 grossed just $1.9 million, demonstrating both the weakness of Android's revenue in 2009, and the rapid growth of 2010.

"Comparing March 2009 against March 2010, FADE estimates that the market has seen a 814% year over year increase during the month, and looks to continue its growth in the months ahead. 'The Android market looks to continue robust growth throughout 2010, as users continue to adopt the platform at record rates." said Benjamin Schlichter, Director of Research & Analysis at FADE.

New Handsets Fuel User Adoption

The notable increase in revenue should come as no surprise. Recent quotes by Eric Schmidt, CEO of Google put the OS at 60,000 new activations per day, or 1.8 million handsets per month. During the quarter, seven new handsets were delivered to consumers, including the Motorola Backflip - AT&T's first Android phone - HTC Legend, and Google's Nexus One.

A caveat exists with feverish handset sales, as per the March report. According to Google, 38% of all Android devices using the Android Marketplace still run OS version 1.5 or earlier as of early April. Due to the nature of the 1.5 market place UI, many users cannot interact with the store as efficiently as users with 1.6 or above, causing lower revenues per user. FADE estimates that revenues will be stuck at low per-user amounts until new updates bring users to newer operating systems, and handset manufacturers drop the production of models pre-loaded with 1.5. During March, new smartphones such as the Motorola Backflip and CliqXT launched with the old operating system.

FADE LLC Top 10 Estimates by Revenue - 1st Quarter, 2010

1. Robo Defense by Lupis Labs - 46,000 downloads ($2.99)

2. SNesoid by yongzh - 21,000 downloads

3. HOMERUN BATTLE 3D by Com2uS - 14,000 downloads ($4.99)

4. Armored Strike by Requiem Software Labs, Inc - 14,000 downloads ($3.99)

5. Nesoid by yongzh - 16,000 downloads ($3.49)

6. GameBoid by yongzh - 13,000 downloads ($3.99)

7. Fishin' 2 Go by CyxB - 22,000 downloads ($2.25-$2.50)

8. Farm Frenzy (various versions) - 10,000 downloads (roughly $4.50 USD or 3 UKP)

9. Space Physics by Camel Games - 12,000 downloads ($2.99)

10. Jewellust by Smartpix Games - 12,000 downloads ($2.95)

Other Estimates:

Note: estimated unit sales do not include developer chargebacks incurred.

FADE maintains a comprehensive database on Android, with sales estimates from June 2009 to current. FADE offers a wide array of reports for Android for any given month, and offers volume discounts for large orders. Visit http://www.fadellc.com for more information.

About Forecasting and Analyzing Digital Entertainment, LLC

FADE is a strategic market research and consulting firm focused on electronic entertainment and the emerging download and mobile game markets. With very little information currently available in these markets, FADE allows smaller developers to investigate these new potential sources of revenue and make informed business decisions moving forward. Currently, FADE produces monthly and annual reports for Steam, Xbox Live Arcade, WiiWare & Virtual Console, and mobile markets including iPhone, Android, Windows Mobile, and Blackberry. For more information, please visit http://www.fadellc.com.