Computer and video games are becoming extremely popular. In particular the interest in playing fun online games that are free over the internet is growing strongly.
Despite the growing popularity of YouTube, MySpace, and Facebook, gaming remains the king of online entertainment, driven mostly by casual gaming activities.
Sites like Yahoo Games and EA’s Pogo.com offer users permission to access a wealth of advertisement supported free online video games, where sponsors have options for advertising opportunities, and display and banner ad placements.
Online games on the consoles could be a $10.5 billion business by 2011 from $981 million in 2007, according to market researcher IDC.
In 2007, online system revenue is at 2.5 % of total global video game market revenue, including console and handheld hardware and software revenue. By 2011, 18.6 % of total market revenue will be represented by revenue from connected consoles.
Although subscription revenue for premium online services and games will develop from $476 million in 2007 to over $2.4 billion in 2011, its share of online console revenue will drop from 48.5 % in 2007 (already down from a high of 86.5 % in 2006) to 23.2 % by 2011.
Downloadable content (DLC) consisting of video games and game-related items, which at $35 million in 2006 represented a 13.5 % market share of internet console revenue, will become connected consoles’ main revenue source in 2007, growing from $493 million in 2007 to $7.2 billion in 2011. This year, game centric DLC is going to make up 68.6 % of online revenue.
Advertising revenue from sponsored services, in-game ads, and product placement in connected consoles will reach $12 million in 2007, submitting the very first significant online console ad invest. Advertising revenue is going to grow to $858 million in 2011, with an 8.2 % market share of online profits.
Though will increase in the Europe/Middle East/Africa region (10.2 %), the U.S. (6.7 %), Canada (9.4 %), and Latin America (8.2 %) as well, video game development will be strongest in the Asia Pacific region, its most well known market, with a ten % annual growth rate through 2011.
Certain trends keep steady across most regions: For instance, driven by enhanced penetration of high speed broadband access, internet gaming is surging. In the U.S. and Europe/Middle East/Africa, internet gaming signifies the fastest growing consumer segment (19.3 % and 24.6 %, respectively); in Asia Pacific and Canada, online progress came in second only to wireless (at 16.1 % along with 13.9 %, respectively). Some other trends are more regional. The in game advertising market is anticipated to increase 64 % in the U.S. And in China it is supposed to go up at a compound annual fee of 14.3 % to $2 billion in 2011, most all of that growth will come in games that are online.
Spurred by the brand new generation of consoles & handhelds, and by increased penetration of broadband and wireless technologies, the video game trade is mature with opportunity. “Growth in platforms allows you to get to new demographics,” says Stefanie Kane, a partner with PwC’s entertainment and media training, noting that handheld game devices have brought a lot more girls into the sector, which the access of on demand TV channels and cable will additionally widen the base. “There is a great deal of unlocked potential.”
You may feel the face of among the hottest areas in gaming right now is a young guy in his 20s which owns probably the latest supercharged gaming system from Microsoft or Sony – or maybe both.
But you’d be wrong.
Instead, the epitome of the new era gamer is a lady in her late 30s or early 40s who plays on an average PC.
Yes, the video game industry appears to have been turned on its head.
For many years, the dominant themes have been faster game machines, increasingly realistic graphics, more immersive play, in addition to the old standbys – bloodstream, guts and blowin’ stuff up.
But that picture has begun to look increasingly outdated. While young men dominate the gaming industry as a whole, casual video games are one of the fastest growing section of the industry and drawing in another demographic.
You can get signs of the revolution all over. One of several fastest growing elements of the game business is centred on so called casual fun free online games, PC based titles that customers could typically get started playing in minutes and usually don’t call for the mastery of some combination of many buttons to enjoy.
The upheaval has spread on the console market, as sales of Nintendo’s Wii control unit and DS handheld, both of which stress fun-to-play video games over realistic graphics or powerful processors, are far outstripping their supercharged competitors from Sony and Microsoft.
Revenue streams enabled by active online consoles in this cycle show probably the strongest development in the sector and will not just figure out the future good results of the console vendors but be vital to the achievements of many third-party publishers.
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