Computer and video games have become very popular. In particular, the interest in playing fun free online games over the Internet is increasing considerably.
Despite the growing popularity of YouTube, MySpace, and Facebook, gaming remains the king of online entertainment, largely fueled by casual gaming activities.
Sites like Yahoo Games and EA’s Pogo.com offer users access to a host of free, ad-supported online games, where sponsors have options for branding opportunities and ad placements.
Online gaming on consoles could become a $10.5 billion business in 2011, up from $981 million in 2007, according to market researcher IDC.
In 2007, online console revenue accounted for 2.5% of total global video game market revenue, including console and handheld hardware and software revenue. By 2011, revenue from connected consoles will account for 18.6% of total market revenue.
Although subscription revenue for premium online games and services will grow from $476 million in 2007 to more than $2.4 billion in 2011, its share of online console revenue will decline from 48.5% in 2007 (already below the peak of 86.5% in 2006) to 23.2% for 2011.
Downloadable content (DLC) consisting of games and game-related items, which at $35 million in 2006 represented a 13.5% market share of online console revenue, will become the largest source of revenue for connected consoles in 2007, rising from $493 million in 2007 to $7.2 billion in 2011. In 2011, game-focused DLC will account for 68.6% of online revenue.
Advertising revenue from sponsored services, in-game ads and product placement on connected consoles will reach $12 million in 2007, marking the first significant investment in online console ads. Advertising revenue will grow to $858 million in 2011, with an 8.2% market share of online revenue.
Video game growth will be strongest in the Asia Pacific region, its largest market, with an annual growth rate of 10% through 2011, but will increase in the Europe/Middle East/Africa region (10.2%). , USA (6.7%). Canada (9.4%) and Latin America (8.2%) as well.
Certain trends remain stable in most regions: for example, driven by higher penetration of broadband access, online gaming is on the rise. In the US and Europe/Middle East/Africa, online gaming represents the fastest growing consumer segment (19.3% and 24.6%, respectively); in Asia Pacific and Canada, online growth was second only to wireless (at 16.1% and 13.9%, respectively). Other trends are more regional. The in-game advertising market is expected to grow 64% in the US and in China it is expected to grow at a CAGR of 14.3% to $2 billion in 2011, most of that growth will come from of online games.
Spurred on by the new generation of consoles and handheld devices, and the increased penetration of wireless and broadband technologies, the video game industry is full of opportunity. “The growth of platforms allows you to reach new demographics,” says Stefanie Kane, a partner เว็บบอล in PwC’s entertainment and media practice, noting that handheld gaming devices have brought more women to the market, and the entry of cable and on-demand television channels will further broaden the base. “There is a lot of potential unlocked.”
You might think that the face of one of the hottest areas in gaming right now is a young man in his 20s who owns the latest supercharged gaming system from Microsoft or Sony, or both.
But you would be wrong.