Report: Game Console-based Purchases to Generate $833 Million by 2011

Authored by Mark Hefflinger on January 25, 2007 - 9:22am.

New York - Payments submitted via next-generation game consoles for in-game virtual items like maps, game add-ons, casual game titles -- and eventually full console games -- will generate over $833 million by 2011, according to a report from market research firm ABI Research.

"The market is evolving from one in which over 90% of software monetization occurs at time of game purchase through standard retail channels, to one where a significant portion will take place through digital distribution," said ABI research director Michael Wolf.

ABI sees Microsoft leading the pack today with its Xbox Live Arcade and Video Marketplace services, with Nintendo's Virtual Console behind and Sony's PlayStation Network just getting started.

ABI also forecasts that, following the early success of Microsoft's Video Marketplace, video and music downloads to game consoles will generate $1.1 billion annually by 2011.

"By establishing their consoles as connected devices with tens of millions in installed base and established online commerce services, these vendors will also look to move beyond gaming content to sell digital entertainment such as movies and music," added Wolf.

Another analyst firm, Research and Markets, recently projected that Microsoft's Video Marketplace will generate $92.5 million this year, and $726 million by 2011.