Though 2007 was another strong year for video game makers, the gaming console hardware business is very costly, according to the latest market study from In-Stat.
Therefore, the three main vendors have turned to online gaming either to generate additional revenue streams or to promote brand loyalty, the high-tech market research firm says.
"The primary differences among Nintendo's, Sony's, and Microsoft's online efforts are mainly of scope," says Stephanie Ethier, In-Stat analyst.
Microsoft is looking to create a number of revenue streams through its Live service, including its subscription service, paid casual games, and additional paid content.
Sony is following a model similar to that of Microsoft's, except for the subscription service. Nintendo is limiting its revenue to paid downloads for Nintendo and partner games.
In-Stat's market study found the following:
- From 2004 to 2011, annualized growth of console subscribers will be 42.7 percent, and growth of handheld subscribers will be 37.1 percent.
- Of the respondents to an In-Stat gaming survey who currently own and use an Xbox or Xbox 360, 32 percent subscribe to Xbox Live.
- Another potential revenue generator is in-game advertising, particularly dynamic advertising.
Therefore, the three main vendors have turned to online gaming either to generate additional revenue streams or to promote brand loyalty, the high-tech market research firm says.
"The primary differences among Nintendo's, Sony's, and Microsoft's online efforts are mainly of scope," says Stephanie Ethier, In-Stat analyst.
Microsoft is looking to create a number of revenue streams through its Live service, including its subscription service, paid casual games, and additional paid content.
Sony is following a model similar to that of Microsoft's, except for the subscription service. Nintendo is limiting its revenue to paid downloads for Nintendo and partner games.
In-Stat's market study found the following:
- From 2004 to 2011, annualized growth of console subscribers will be 42.7 percent, and growth of handheld subscribers will be 37.1 percent.
- Of the respondents to an In-Stat gaming survey who currently own and use an Xbox or Xbox 360, 32 percent subscribe to Xbox Live.
- Another potential revenue generator is in-game advertising, particularly dynamic advertising.