Leading mobile games publishers Electronic Arts (EA) and Gameloft have said that the mobile gaming industry will ride-out the current economic downturn that has led to a decline in handset sales, reports Reuters. Their comments came in response to an earlier announcement this week by rival mobile gaming company, Glu Mobile, which said it is to cut jobs and operating expenses across its global organisation. “Concerning the iPhone, mobiles etc, we are not worried, it’s all going well,” a Gameloft spokeswoman told Reuters when asked about fourth-quarter demand. Meanwhile, Barry Cottle, head of EA’s mobile business, noted that “mobile games are actually thriving right now” due to the increasing adoption of smartphones, which have offset the overall fall in handset sales. The emergence of new high-end handsets, and new platforms such as Apple’s iPhone, Google’s Android and Nokia’s N-Gage are seen as a huge opportunity for the mobile gaming industry.

Glu Mobile had earlier said it would reduce operating expenses by approximately US$13 million, or 19 percent, from its second-quarter 2008 levels and is aiming for total non-GAAP operating expenses in 2009 of around US$57 million. “These decisions are difficult but necessary given the increasing economic headwinds facing our industry and the softening in consumer spending,” said CEO Greg Ballard, who has also agreed to a 25 percent cut in his own salary. He noted, however, that Glu would continue to invest in key growth opportunities, especially those concerning high-end handsets and new platforms such as iPhone, Android and N-Gage.