Mobile gaming brings in the money

Video games have become the top money maker on tablet computers and smartphones, according to a study from PlayFirst and consulting firm Frank N. Magid Associates, as mobile devices continue to entice serious gamers and novices alike.

According to the study, accessing the internet is still the No. 1 activity on tablet devices, but games are where money can be made. In an online survey of more than 2,500 people, Magid finds the average tablet gamer downloads more than 20 games a year.

Nearly a quarter of respondents say they pay for virtual goods in tablet-based video games, spending an average of $62 last year. Within the next 12 months, 48 percent of respondents say they will play a tablet game.

"The tablet has become TV Jr. in the home," says Magid president Mike Vorhaus. "Games are clearly at the center of the entertainment ecosystem on the tablet."

A separate study from ABI Research suggests mobile devices like tablets and smartphones are cannibalizing the handheld gaming industry. According to that report, handheld devices are slipping rapidly, reaching some of their lowest sales figures in years, while mobile games appear to be picking up steam quickly.