The Journal has their version of what's up in the mobile games industry - that it's still a niche business without serious takeup, and with seriously price-sensitive consumers, so games producers and publishers are struggling to survive.
The real problem with this industry is that the network operators don't send enough money to games producers and publishers to give them a reason to make cool games. They're doing a terrible job of being platform coordinators - trying to extract all the value for themselves. This is why the industry is stagnant.
The other problem with this article is that it misses the strategic argument entirely: networked games are the future (if not the present) of the games market, and mobility is going to be a major driver of innovation and growth in this market. Here's an article from the Guardian that talks a bit about this.