Skip to main content

Console and Handheld Online Gaming

The game console online era started in the second half of 2002 when Sony, Microsoft, and Nintendo all launched online gaming for their consoles. Microsoft�s Xbox Live service is the most ambitious: a closed, broadband-only, pay subscription service entirely run by Microsoft. Sony offers online gaming free to those who buy a dial-up or broadband network adaptor for the PS2, or who have a newer unit with a built-in network adaptor.

Video game consoles and handheld game devices are greatly expanding the market for online gaming, according to a new report from In-Stat. Gamers who play online via their Microsoft Xbox, Nintendo DS or other console numbered 3.4 million in 2004, and are expected to reach 30 million by 2009.

In-Stat predicts Microsoft's Xbox Live online game service will see just under 50 percent annual subscriber growth between 2004 and 2009. For its part, Nintendo has avoided online gaming for its GameCube, but has launched a network of Wi-Fi hotspots worldwide in connection with its free online game service for the Nintendo DS handheld.

Meanwhile, Sony, which currently offers free online play through the PlayStation 2, is expected to have a big impact on subscriber growth and revenues over the next few years with the release of the PlayStation 3; it's unclear whether Sony will continue to offer online gaming for free with the new console, or try to generate revenue with a subscription service.

Popular posts from this blog

The Subscription Economy Churn Challenge

The subscription business model has been one of the big success stories of the Internet era. From Netflix to Microsoft 365, more and more companies are moving towards recurring revenue streams by having customers pay for access rather than product ownership. The subscription economy cuts across many industries -- such as streaming services, software, media, consumer products, and even transportation with the rise of mobility-as-a-service. A new market study by Juniper Research highlights the central challenge facing subscription businesses -- reducing customer churn to build a loyal subscriber installed base. Subscription Model Market Development The Juniper market study provides an in-depth analysis of the subscription business model market landscape and associated customer retention strategies. A key finding is that impending government regulations will make it easier for customers to cancel subscriptions, likely leading to increased voluntary churn rates. The study report cites the