New consoles, new players, and better online functionality are all set to spark an online gaming explosion around the globe that could hit $13 billion by 2011, according to a new 750-page (wow)
report from video game researchers at DFC Intelligence. During this period, DFC expects North America to overtake Asia as the leader in online gaming. Healthy growth expectations are always nice--and
to a certain extent, realistic--but $10 billion in five years? How/why? DFC says through higher PC penetration, increased broadband adoption in new parts of the world, and Internet-enabled video game
consoles (the three biggies will all have online functionality). Other revenue drivers will include subscription revenue generated by massively multiplayer online games, virtual item sales in online
games, and in-game advertising revenue, which is expected to hit its stride by 2008. DFC says that by 2011, MMOs (massively multiplayer online games) will become the leading category driving online
gaming. Despite the rosy growth picture, many online gaming companies are struggling to become profitable, and traditional video game publishers are also losing money in many of their online ventures.
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