There is an invisible sea change going in within mobile devices, and it has to do with speed. The mobile experience is becoming more and more vital to consumers who crave high-definition streaming and high-powered mobile gaming. Semiconductor technology and microprocessor technology is growing faster than ever because phone companies like Apple (NASDAQ:AAPL) and Samsung are looking for ways to reduce memory workloads and increase speed and productivity. Core processors that can reduce heat and keep apps and gadgets running at high speed are worth big money in licensing sales.
One of the largest of these companies is ARM Holdings (NASDAQ:ARMH) is one of the most important companies in this sector. ARMH was created in 1990 as a joint venture between Acorn Computers, Apple, and VLSI Technology. Over the years, the company has transformed into a billion dollar company because of its ability to design semiconductors and earn profits off license fees and royalties. Essentially, ARMH designs 95% of the world’s smart phones, an estimated 80% of digital cameras, and even has a decent percentage of IoT (Internet of Things) and networking devices. But, how does ARMH factor into mobile apps and games? The chip architecture company announced early this year that the company’s new chips will allow for visuals on par with PlayStation 4 and Xbox One.
One of the other companies that is working with ARM is the California-based Nvidia Corporation (NASDAQ:NVDA). NVDA brings the advanced know-how of mobile computing to the collaboration and the ability to create real-life graphics for virtual reality, augmented reality, video games and data centers. The level of graphics the collaborations will create might not make video games companies start to release video games solely for mobile devices, but it could create offshoots or expansion packs for mobile devices. Furthermore, mobile devices could make virtual reality applications much more accessible to game designers, especially if there is no drop-off in visual graphics.
Besides the race to create super processors and high-speed chips, there is already a race going on between mobile game developers to run high-end VR games on the Oculus Rift or Microsoft’s (MSFT) HoloLens. Companies like Take-Two Interactive Software (TTWO) are poised to benefit from mobile games that have console graphics. TTWO is the company that makes titles like NBA 2K16, Grand Theft Auto 5, Battleborn and Mafia III. Faster speeds combined with phone batteries not being drained at horrifying speeds allows game developers to interest more and more customers from diverse demographics. A company like SPYR, Inc. (OTCQB:SPYR) is poised to benefit off this improved technology since they publish through its SPYR APPS, LLC wholly owned subsidiary a very popular MMO (Massively Multiplayer Online) game called Pocket Starships. SPYR already knows that the mobile gaming industry is booming (it is already a billion dollar industry); along with Pocket Starships’ free-to-play MMO model combined with its eSports possibilities, the company could see improved sales in an industry that is clearly paving the way for better and better visual graphics. Not to mention, as gamers who prefer PC-only games matriculate to the mobile platform, the industry could see revenues that continue to rise.
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