• The Economist , Friday, December 19, 2008 12 PM

Console games aren't the only part of the gaming sector having a banner year: The Economist points out that "casual" games, which are played over the Web on a PC or mobile device, are also booming. And while these games may lack the depth of console video games, even the most hardcore gamer would admit that simple puzzle, card and quest games can be just as if not more addictive.

Now, thanks to the rise of social networking sites like Facebook and smartphones like Apple's iPhone, casual gaming is widening its user base. "Social gaming", or games that can be played between friends on social networks, has become especially popular. Zynga, a developer of such games, has more than doubled its staff since June. Serial entrepreneur Mark Pincus, Zynga's founder, attributes the success of his company's games to their social nature. Of course, it doesn't hurt that the games don't cost anything, either. Taking a hint from the online gaming model in Asia, Zynga offers its games for free but invites users to pay for optional in-game extras. The startup has had positive cash flow since September 2007.

Another casual gaming outfit enjoying similar success is PopCap Games, creator of such classics as "Bejeweled" and "Peggle." As Dave Roberts, CEO of PopCap, says, "We provide better entertainment value than a $60 Xbox 360 title," he says. This, he hopes, will appeal to cash-strapped consumers.

Read the whole story at The Economist »