MTV Networks, owned by media powerhouse Viacom, is planning to invest more than $500m over the next two years in the development and distribution of its gaming business.

Mika Salmi, president of MTVN Global Digital Media, said: "Whether hardcore or casual, online or console-based, games are a dominant activity across all our audiences.

"We are upping our efforts to connect with more gamers in a more engaging way than ever before and provide added value to our marketing partners."

The two-year investment is being driven by research showing that the company's audiences, across all ages, use gaming to connect with others and themselves through play and competition.

The firm will focus on three primary gaming arenas: online and mobile casual games that appeal to kids, young adults and women; games media and editorial content for the hardcore gamers among its young adult and adult male audiences; and console and handheld games that serve kids, young adults and men.

MTV Networks has also announced an agreement with Nokia to deliver a range of Flash mini-games on Nokia handsets around the world.

Although 47 per cent of MTV Network's audience play games, compared with 27 per cent of average web users, Michael Pachter, an analyst at Wedbush Morgan, warned that the gaming industry is notoriously fickle.

"Media companies are crazy trying to bring video game development in house. They act like anyone can do this. The fact is not everyone can," he said.

This is not Viacom's first foray into gaming. The firm bought Atom Entertainment for $200m last year, along with Harmonix, which developed the popular Guitar Hero franchise, for $175m.