Skip to main content

Online Game Virtual Goods Sales to Double by 2014

Video games had been the domain of teen males in the past, but this is no longer the case. Two distinct developments have changed the player demographic of online games. First, the development of social networking sites, such as Facebook. Second, the increasing prevalence of mobile smartphones.

In the past, within the U.S. market you had to pay $30 to $50 for a game -- or $20 per month for a subscription -- but now you can play them for free, thanks to the rise of the virtual goods revenue model.

This transition has driven the number of social networking and online worlds (SNOW) accounts beyond 10 billion in 2010 -- with nearly 4.5 billion of those considered active accounts, according to the latest market study by In-Stat.

"The virtual goods revenue model is one of several mediums that SNOWs use to generate revenue," says Vahid Dejwakh, Industry Analyst at In-Stat.

The basic premise is to allow everyone to create an account and play for free and then offer users the option of purchasing virtual goods to be able to move up and advance in the game or just to have more fun.

This model is sometimes used exclusively, though it is often combined with the more familiar subscription model, where subscribers pay a monthly fee to have access to exclusive content. Apparently, SNOWs also generate a substantial amount of revenue through advertising deals, from banners to branded goods offers.

In-Stat's latest market study findings include:

- The top 10 virtual goods companies earn 73 percent of current worldwide revenues.

- The Americas and EMEA regions now have grown to account for well over a quarter of all virtual goods sales. However, Asia-Pacific still dominates the global market.

- Online gaming and social networking will drive virtual goods revenue over $7 billion in 2010.

- The emergence of social and casual games on social networking sites and mobile phones has created a 2D virtual goods market that exceeds $2 billion.

- In-Stat forecasts total virtual goods revenues will more than double by 2014.

Popular posts from this blog

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

The Fastest-Growing Mobile Opportunity in 2022

The number of mobile communication subscriptions worldwide is currently estimated at 8 billion, with 6 billion on smartphone connections, from a user base of 5.9 billion unique subscribers among a global population of 7.9 billion. Fifth-generation (5G) mobile service subscriptions using a compatible device significantly grew during the COVID-19 pandemic, but 4G connections remain the dominant force within the global telecom service provider sector. While the use of mobile phones is common throughout developing nations, 4G services are still an emerging technology in many parts of the world. Overall, 5G subscriptions will likely grow from 580 million at the end of 2021 to 3.5 billion by the end of 2026. 5G Mobile Market Development According to the latest worldwide market study by Juniper Research, revenue generated from 5G mobile services will reach $600 billion by 2026 -- representing 77 percent of global network operator-billed revenue. The adoption of 5G services across consumer and

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d