SCOTTSDALE, Ariz., January 15, 2007 -
It is becoming obvious that in the increasingly expensive world of producing consoles and games, both the console vendors and software publishers are looking to the online world to recoup development costs, reports In-Stat (http://www.in-stat.com). Paid downloadable content and advertising are becoming key elements in this process, the high-tech market research firm says.
“Sony and Nintendo both launched new online efforts focused on providing paid downloadable content in the form of games from past consoles as well as casual games that will be available for $3 to $15,” says Brian O’Rourke, In-Stat analyst. “Meanwhile, Microsoft continued to be the leader in the online console space in 2006, with its announcement of a video and movie download service for the Xbox 360.”
Recent research by In-Stat found the following:
From 2005 to 2010, annualized growth of console subscribers will be 40.8%, and growth of handheld subscribers will be 94.2%.
Online console revenue will grow at a 46% annual rate over the same period.
Revenue from handheld online gaming may begin to become a factor in 2007.
Recent In-Stat research, In-Depth Analysis: Online Console Gaming 2006: Downloadable Content and Online Advertising to Become Key Revenue Generators (#IN0602977CM), covers the market for online gaming. It contains forecasts for online game subscribers annually through 2010 for all game console and handheld consoles that have online capability, and online gaming revenue, including revenue generated from subscriptions, downloadable games and video content, and advertising. Detailed profiles and analyses are provided for the online console strategies of Microsoft, Nintendo, and Sony, as well as the online handheld strategies of Nintendo and Sony. Analysis of related gaming issues and competitive gaming platforms, including online advertising, digital distribution of gaming, PC online gaming, and casual gaming are included.
This research is part of In-Stat’s Consumer Media and Content Service, which focuses first on the changing digital content models, and then how this will influence the evolution of equipment, standards, technologies, services and consumer usage models. The service addresses the acquisition, distribution, and use of digital content (audio, imaging, video, and voice) and how it fits into the consumer’s digital entertainment lifestyle. The service explains the opportunities for equipment makers and service providers within the emerging digital home.
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