Almost one-third of people in the U.S. over 13 play mobile games monthly, and the number of gamers in older demographics more than doubled since 2007, according to Parks Associates.

The international research firm's new report Mobile/Portable Gaming: Market Updates finds the user base for gaming has expanded into nontraditional segments thanks to the popularity of mobile apps and titles such as Rovio’s Angry Birds. These changes will also force creation of new business models to generate revenues, with in-app purchases currently the most successful. This model provides the game for free and creates revenue streams by selling expansions or enhancements, which helped Rovio reach over $70 million in revenues for Angry Birds.

“Traditional game companies have expressed concerns about mobile gaming devaluing the market, but in reality, mobile gaming has increased the overall user base and attracted new demographics," said Pietro Macchiarella, Research Analyst, Parks Associates. "The broad appeal of mobile games such as Angry Birds, Fruit Ninja, and Words with Friends and increasing ease with which people can download them have attracted less traditional gamers, including a growing number of older players and females.”

Penetration of smartphones and tablets, competition in app marketplaces, and better payment methods have also fueled growth. The challenge for next-generation portable consoles, the Nintendo 3DS and the PlayStation Vita, is to appeal to this larger audience.

“Low-priced and free titles are incentivizing consumers to try out mobile games," Macchiarella said. "If popular mobile titles are ported to gaming devices and enhanced, manufacturers such as Sony and Nintendo will be able move loyal mobile gamers to their new platforms."