Online Games will Make Up One Third of All Game Revenue
Date: 09-12-2007
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KeyWord: MMO, Blizzard, World of Warcraft
Summary:A new report from Strategy Analytics suggests that the online global games market will grow at a compound annual growth rate of over 25 percent, so that by 2011 the online games category will make up one third of all game software revenue.
A new report from Strategy Analytics suggests that the online global games market will grow at a compound annual growth rate of over 25 percent, so that by 2011 the online games category will make up one third of all game software revenue. MMOs like WoW will help pave the way.
According to the market researchers at Strategy Analytics, the video game industry is in the midst of an online revolution. Led by massively multiplayer titles such as Blizzard´s incredibly popular World of Warcraft, the global online games market, which currently is worth about 4 billion, is expected to triple in the next five years.
Strategy Analytics´ report Online Games: Global Market Forecast explains that the MMOG market and games such as WoW are "blazing the way for electronic sell-through and digital distribution of both PC and console games."
"The rapid growth of the addressable market for digital distribution of both PC and Console games will help clear the way for distribution of mainstream hit titles which has up to now been restricted to the physical retail channel," commented Martin Olausson, Director of Digital Media Research at Strategy Analytics.
Looking at the global music, video and games markets (which Strategy Analytics considers the "three main online entertainment markets") the online games category generates the most revenue. Strategy Analytics said that the global online games market generated an estimated 3.8 billion in 2006 and the market is projected to grow with a compound annual growth rate (CAGR) of 25.2 percent from 2007 through 2011, ultimately reaching 11.8 billion and therefore representing approximately one third of the total games software market by 2011.
