Report: Online Games Will Take One-Third of Revenues by 2011

Authored by Mark Hefflinger on September 12, 2007 - 9:38am.

Boston - The $4 billion global market for online games is expected to triple in the next five years, and in 2011 one-third of games software revenue will be generated online, according to a forecast from market research firm Strategy Analytics.

The firm estimates the global online games market generated $3.8 billion in 2006, and will grow at a compound annual growth rate of 25% to reach $11.8 billion by 2011.

Blizzard Entertainment's "World of Warcraft" franchise was cited as a catalyst for electronic sell-through and digital distribution of both PC and console games.

"The main driver for sustained growth in the online games market will be the continued uptake of broadband services around the world," said Strategy Analytics principal analyst David Mercer.

"Additionally, the very lucrative revenue opportunity in both the massively multiplayer segment and the electronic sell through market will continue to attract new entrants into the online games market."

 

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