By Ryan Olson

Mobile games are gaining play. Revenue from a category of games known as “on-portal” jumped 61 percent in the fourth quarter of 2006, a report from researcher Telephia said on Monday.

About 74 percent of revenue comes from carrier portals such as those from Cingular, Verizon, and Sprint.

The data comes despite stiff competition, market maturity, and the proliferation of mobile content such as video and music.

Still, mobile gaming has hooked players beyond the usual 18- to 34-year-old males. About 65 percent of U.S. mobile game buyers are women, according to Telephia. Forty percent of mobile gamers are between the ages of 25 and 36.

More than 17 million people downloaded a mobile game during the last three months of 2006, the report said—a 45 percent jump from the 12 million in the last three months of 2005.

Americans represent nearly a third of the worldwide mobile gaming market, which iSuppli pegged at 38 million per month in 2005. The firm predicts that by 2010, that number will reach 134 million average users each month.

Mobile Opportunity

The stakes are high. U.S. mobile game revenue in 2006 was $566 million, according to Telephia. The firm did not release forecasts for the segment’s growth in the U.S. By 2010, iSuppli predicts the worldwide mobile gaming market will be worth $6.1 billion—up from $1.8 billion in 2005.

While mobile content such as video and music will continue to compete with gaming for consumer attention, perhaps the biggest challenge faced by mobile game makers will be their peers.

The mobile gaming market is currently packed with nearly 90 publishers. Analysts believe only about 10 mobile game companies will stay profitable in the long-term (see VCs to Mine Gaming Gold).

Consolidation is already underway. Console, PC, and portable gaming giant Electronic Arts started the move last year when it became the leader in mobile gaming after buying startup Jamdat for $680 million (see EA Buys Jamdat for $680M).

Glu Mobile—one of the biggest mobile game makers after EA—acquired UK mobile publisher iFone in April 2006. In December the company filed for an IPO that could net as much as $100 million for growth, including acquisitions (see Glu Mobile: Game On).