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Global Online Gaming Market Will Quadruple

Business Week reports that the analysts at market research firm DFC Intelligence have issued a new 750-page report that forecasts the worldwide online game market to grow from $3.4 billion in 2005 to more than $13 billion in 2011.

While Asia has long been thought of as the leader in online gaming, DFC expects North America to challenge this lead during the period. The growth spurt over the next several years is expected to be driven by higher PC penetration, increased adoption of broadband Internet, and the increased usage of video game consoles online.

DFC notes that the emergence of online gaming is also driving up the number of consumer subscription services, the use of the games delivery method of online digital distribution and has helped lead to an increasing acceptance of in-game advertising.

Although sports, racing and action genres are starting to go online more frequently, most of their revenue is still derived from retail sales. The leading online game category that will drive the space, according to DFC, is the MMO. Despite the fact that MMOs appeal to a fairly small base, the subscription revenues are big contributors. "MMOGs have a sophisticated online business model that drives a great deal of revenue for the top products," said DFC analyst David Cole.

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