Despite Household Saturation, Connected Console Revenues Will Grow 150% From 2008 To 2011, Reaching Nearly 2 Billion Dollars in 2011

JupiterResearch: The next generation of Internet connected game console revenues will grow from roughly $800 million in 2008 to nearly $2 billion in 2011. Increasing the value of each console household is key to growth.

Industry console revenue growth will reach a high of $12.2 billion in 2007 when new platform sales are strongest. Then in 2008, the battle for the living room will begin in earnest with significant revenues coming from the connected console. At this time, one in ten households in the US will have a connected game console, and by 2011, this percentage will double. Driving the adoption of greater console usage by more household members will be a key factor to the success of the business.

Game systems in their current form have reached household saturation in the US. But the next generation of console revenues will grow as vendors deploy a variety of strategies and content to attract new family members.

Among the key elements that will attract the second and third players on consoles will be the availability of a large catalog of casual games. Publishers and platform suppliers can reach a large audience of about 75 percent of US online users that have interest in playing these titles. Consumers will no longer be confined to traditional platforms for social and casual gaming activities.

In 2008, more than 50 percent of US households will have broadband Internet access and nearly 35 percent will have a home networkpiterKagan. As the industry shifts to digital distribution especially for casual games and other content, it will attract an estimated 24 million households in the US to get connected. That will contribute to the revenue growth from $800 million to nearly $2 billion in 2011. US Console Games Forecast, 2006 to 2011

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