Worldwide revenue from mobile gaming is set to surpass $4.5bn this year, according to figures from Gartner.
The year-on-year increase of 16.1 per cent will continue to lag behind other forms of value-added entertainment services, such as music and adult content.
But the analyst firm believes that the potential for growth remains high.
"Current consumer interest in, and use of, mobile gaming is generally low," said Tuong Huy Nguyen, principal analyst at Gartner.
"But the potential for growth remains lucrative, with the market skewed toward lower-income segments, mobile workers and smartphone and PDA users."
Nguyen attributed the healthy growth rate to value for money, high-quality portable consoles and improved working relationships between game publishers and mobile operators.
Gartner reported that mobile gaming revenue will enjoy a growth rate of 10.2 per cent between 2007 and 2011 rising to $6.3bn.
Nguyen advised mobile operators and other game providers to increase uptake by offering demos or advertising-funded games in a bid to offset declining revenue from phone calls.
"As voice revenues decline, mobile operators need to find ways to offset this downward trend and mobile gaming has considerable growth potential," he said.
AMD's Zen chip roll-out continues with the focus on high-power embedded applications
And becomes the team's executive chairman to boot
'Whatever the causes of political polarisation today, it is not social media or the internet,' claims Dr Grant Blank
Tesla founder leaves OpenAI group - while Valve Software's Gabe Newell joins