Hello, madonna-ga!
According to a recent report by Zona Inc. and Executive Summary
Consulting, the online video game market is expanding rapidly, as
broadband adoption penetrates the marketplace. “Currently, 25% of all
U.S. Internet households are on broadband connections. In Germany,
Japan and The Netherlands, more than 40% of Internet homes are
broadband, and in Korea, the figure is more than 50%. Adoption of
high-speed connections continues to grow, and there is already more
than four-times as much home broadband capacity as would be required
to meet the projections in this report.”
The worldwide electronic games industry is already surpassing the
film and music industry in terms of revenue. Today, the worldwide
electronic games industry is worth **SD&31.7billion.**
Much of the current excitement revolves around the emergence of
Multiplayer online games, a revolutionary concept with “…profit
potential unlike anything the game industry has known before," said
Rick E. Bruner, principal, Executive Summary Consulting, Inc.
According to the report titled “The State of Massive Multi-Player
Online Games 2002: A New World in Electronic Gaming,” the Massive
Multiplayer Online Game market (MMOG) nearly “six million game players
around the world will spend nearly half a billion dollars in 2002
subscribing to MMOG’s, and ***by 2006, that number should be USD$2.7
billion.”***
The report examines trends that are moving the online video game
industry forward rapidly. Excerpts follow:
1.The profit potential of MMOG’s.
“A game that achieves 1 million monthly subscribers stands to gross
more than USD$150 million in a year. In three years, that is $450
million. Selling through the retail software channel, by comparison, a
game priced at $50 to the same 1 million buyers would only gross $50
million.”
2. The investment in MMOG’s by Hollywood and big business.
3. The willingness of users to pay for content.
4. The penetration of broadband.
5. The production of a “new generation” of internet-enabled game
consoles.
6. The expansion of new game titles.
Read “Study Released Detailing Market Projections of Massively
Multi-Player Online Games.” Press Release by Zona Inc. and Executive
Summary Consulting, Inc. (10/9/2002) at
http://www.digitalgamedeveloper.com/2002/10_oct/news/dlzes10902.htm
Internet-connected consoles are the link needed to launch online
gaming into a fast-growing arena. A recent Datamonitor report projects
that even if “console online gaming will not take off overnight,
consumers are bound to move towards consoles. The market for online
games will reach US$2.9bn in 2005, up from US$670m this year.” The
largest market for online games is expected to be the United States,
generating more revenues “than the entire Asia-Pacific region.”
Phil Burnham, research manager for InormBD, believes that
Internet-connected consoles will launch online gaming into the
mass-market. "Although the success in this area is mainly reliant on
the mass market uptake of broadband. If this happens we can expect to
see some migration from the PC platform."
Read “Report: Online Gaming Reaching Critical Point.” Game
Marketwatch.com (9/18/2002) at
http://www.gamemarketwatch.com/news/item.asp?nid=2562
The growth of the online video game market is partially due to the
changing demographics of it’s users. “Once a pastime dominated by
American and Japanese adolescent boys, as was the case 20 years ago,
more men and women of all ages, worldwide, are now playing video
games.”
Read “Video Games: The Dominant Form of Electronic Entertainment.”
Business Communications Co. (12/1/2001) at
http://www.mindbranch.com/listing/product/R2-539.html
For projections regarding the game consoles market, read:
“Strategy Analytics Research Report Predicts 84% Increase in Console
Sales for 2002,” by Joseph Moran. GameMarketwatch.com (10/18/2002) at
http://www.gamemarketwatch.com/news/item.asp?nid=2581
For projections regarding the rental market for online games, read:
“Yahoo! Launches Broadband Games,” by Jane Weaver. NSNBC News
(9/22/2002) at http://www.msnbc.com/news/810521.asp?0si=-
The above information should provide you with some good market and
dollar projections for the online video game industry over the next
several years. If I can provide further help, please don’t hesitate to
ask.
umiat-ga
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