Online Gaming Revenues to Triple by 2009

Networked gaming and digital distribution drive business model diversification

Parks: Revenues from U.S. online gaming services will increase from $1.1 billion in 2005 to more than $3.5 billion in 2009Networked gaming services, including online console gaming, massively multiplayer online gaming (MMOG), multiplayer Internet gaming, and mobile multiplayer gaming, will account for almost 50% of online gaming revenues in 2009, followed by digital downloads at 23%.

The two primary drivers for online gaming are networked gaming services and digital distribution. Over the next four years, the gaming industry will no longer depend solely on retail sales and instead will see more balanced and diversified business models. Games-on-demand services will complement digital distribution and, in addition, game publishers and service providers could generate significant derivative revenue from networked in-game advertising and secondary market exchange. The gaming industry is definitely learning valuable lessons from the video industry – syndicated game networks such as GameTap can extend a game’s release window and in-game advertising can lead to innovative business models such as free MMOG,Furthermore, we believe more game publishers and service providers will find ways to monetize the in-game economy, instead of fighting against it.

Networked Gaming: Driving the Future, Games? Wkipedia Red Viking Publ 20051215