Skip to main content

Online is New Imperative for Gaming Industry

There are now signs that the consumer electronic (CE) sector has been negatively impacted by economic pressures, according to the latest market study by In-Stat. Shipment growth in 2009 will be slowed down across a number of CE segments -- and video game consoles is expected to be one of these markets.

In 2008, total video game console unit shipments reached approximately 48 million worldwide, up 17 percent from worldwide unit shipments in 2007. Growth occurred over this time period for a number of reasons.

Consumer demand for the Nintendo Wii was very strong and outpaced demand for both the Xbox 360 (Microsoft) and the PlayStation 3 (Sony). Also, the video game console market did not see an impact from the declining economy until late October 2008.

Even then, the market survived the remainder of the year, and experienced continued demand over the crucial holiday season. However, for 2009, the market is expected to fall almost 2 percent to 47.5 million unit shipments worldwide.

The video game console business is costly as it is, and coupled with a dismal economy, the three main vendors have turned to online gaming to generate additional revenue or to promote brand loyalty.

However, there are clear differences among the three vendor strategies.

Microsoft is trying 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, except it doesn't offer a subscription service. Nintendo is limiting its revenue to paid downloads for Nintendo and partner games. Other services, including multi-player gaming, news, weather and Internet access, are free.

Since the Wii has been selling so well, it would appear that it is not Nintendo's priority to develop an online gaming strategy that makes money. However, online gaming is shaping up to be an imperative part of the gaming industry overall.

In-Stat believes that it would be in each vendor's best interest to develop and hone its online gaming approach over the next year in an effort to create new revenue streams in a dismal economy.

Popular posts from this blog

How Data and Analytics Drive Business Growth

Senior executives in the world’s largest and most complex organizations will develop the insights required to achieve lasting Digital Transformation. Gartner has identified a model for digital business growth that binds together data, analytics, technology, and forward-looking transformation capabilities. The Gartner Research Board said that data and analytics (D&A) leaders are uniquely positioned to drive this strategic organizational change that will make their companies behave like 'digital native' leaders.  "The most advanced and successful D&A leaders are driving new opportunities to use digital capabilities – often data and analytics products – to capture value. Those opportunities should directly connect to the business priorities," said Mario Faria, vice president at Gartner . Digital Business Market Development At the same time, some leaders are using digital and D&A to create whole new business models. These leaders – which Gartner named the CxO

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

The Metaverse Raised Virtual Reality Interest

After years of slow growth and limited use cases, the Virtual Reality (VR) market is now forecast to grow significantly over the next five years. Consumer interest in VR games and media continues to grow after the COVID-19 pandemic accelerated activity. At the same time, the need for employee enablement and immersive content within the enterprise environment remains strong. According to the latest market study by ABI Research, over 90 million Head Mounted Display (HMD) shipments in 2027 will drive total VR market revenues to reach over $95 billion across hardware, software, and services. Virtual Reality Market Development "The virtual reality market is no stranger to false starts, with identifiable efforts in VR dating back to the 1980s and 1990s. While the technology never found purchase results, the increased capability of VR hardware combined with the demand for immersive content in numerous markets, presents a significant opportunity," says Eric Abbruzzese, research direc