Mobile operators are "short-sighted" on charging - Bigpoint
People are working to "bypass" 50%-cut payment systems, warns chairman Simon Guild
Mobile operators are being "short-sighted" in charging publishers as much as 50 per cent on transactions, a level of cost that's driving work on alternative routes to market.
That's according to Bigpoint chairman Simon Guild, speaking at last night's IBIS/LBS Videogames Investment Network event, on one question focusing in on the health of the mobile games business - and whether or not more would be done to streamline the food chain from developer to consumer.
"I've been thinking for a while that somebody's going to make a fortune in the mobile payments space," he said. "It won't be me, but someone is going to. The pain we went through to string together 150-200 different payment plans around the world... it's an incredibly painful thing.
"I know there are players out there already that are trying to rationalise this, and it will get rationalised. As part of that I think mobile... it's a disaster really when you give 50 per cent away to the local operator. I mean, AMEX - anything - it would be cheaper to send someone round to their house to collect the money in person.
"I think the mobile guys are being a bit short-sighted, because I personally know of a number of people who are working to bypass their entire systems, and that is going to happen very soon. If they don't do it themselves, somebody's going to bypass it for them.
"So one of the things that I think will open up potentially is if the mobile guys do cut that transaction cost significantly - and I believe that will stimulate a lot of activity."
The release of the Apple iPhone, coupled with the App Store, has resulted in a game development boom for the platform - and while the iPhone is by no means the dominant mobile device in the market worldwide, its growth suggests a streamlined food chain is far more attractive to developers and consumers alike.