Technology | Media | Telecommunications

Thursday, September 11, 2008

Explosion in Game Console Related Growth

In 2013, online content and services for Internet-connected game consoles will generate over $8 billion in global revenue for Microsoft, Sony, and Nintendo, the three console manufacturers.

A new report from Parks Associates forecasts that revenue streams from digital video distribution, downloadable games and content, virtual worlds and avatar based micro-transactions, multi-player gaming services, and dynamic in-game advertising.

"Broadband connectivity, now a common feature for game consoles, is a key enabler for new business models," said Yuanzhe (Michael) Cai, Director of Broadband and Gaming, at Parks Associates.

"Among the different online revenue opportunities, digital video distribution and downloadable games and content are the most promising."

The Parks report further reveals that among the big three game console manufacturers, Microsoft currently dominates the online content and service market -- but Sony and Nintendo are gaining ground as they ramp up their base of connected customers and diversify monetization methods.

"Led by Microsoft's success in Xbox Live, all three console makers are dreaming up many innovative offerings to entice console households to get connected and spend more money," Cai said.

The Parks study profiled new console-related capabilities, services, and business models, including online multi-player gaming, virtual worlds, dynamic in-game advertising, and digital delivery.

The Parks study results also forecasts revenue growth and market share -- plus, it examines the impact of game consoles on other related industries.