Mobile music, game revenue to spike

The markets for handheld gaming and portable music services will both top $2 billion by 2009, according to a report released today by researchers at the Yankee Group.

The company released its US Portable Entertainment Forecast to subscribers and clients. The study predicts consumer adoption and spending through 2010 and focuses on portable devices that support video, music, and gaming.

The key findings of the report see the portable game business generating $2.3 billion at retail by 2009. In addition to gaming, the study sees an increase in revenues generated by music services and phone hybrids that provide telephony service as well as play games.

By 2009, mobile phones that also support gaming are expected to generate nearly the same amount of revenue as stand-alone portable game devices such as the PSP and DS.